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vijaya mohan rao (ameteur)     25 November 2011

Power of attorney

Dear Sir, 

This is in reference to Registration Act, 1908. Is there any limitation to 'power of attorney'? To make it clear, A obtained special power of attorney in respect of X property from B being the legal heir fo that property, in January 2011.  He did not make use of that SPA and instead he went to SRO office and got the entire property registered on his own name from B, without cancelling the SPA and without mentioning existence of SPA int the said registerred sale deed. Thus, both A and B made false statements, declarations, executed doucments before Sub-Registrar which is punishable U/s 82 of Registration Act. My quetions are:

1. Is there time limitation to implementation of power of attorney by A and any default expiration clause exists in Registration ACt, 1908?

2. Whether it is proper to exeucute a sale deed by B in favour of A when there is existence of SPA already in favour of A?

3. Whether such sale deed has legal sanctity since SPA is already existing and hence A is not entitlerd to register the property on his own name but he is empoweed to exeute sale or transfer into the name of any other person. 

4. Whether A and B made false declarations, statements etc., before the SRO and are they liable for prosecution U/s 82 of Registration Act.

Note: This matter came into light during investigation of a case wherein a man called C is having agreement of sale cum general power of attorney inclusing posession doucment which is pre-existing before the SPA and so called sale deed exeucted in favour of A by B.

 

Kindly clarify. 

Regards. 

 



Learning

 9 Replies

Rajesh Hazra (Mediator and Legal Counsel )     26 November 2011

A per my understanding SPA was being used for the rights with resprct to the property and later the same parties have undergone a registration of the rights bfore the Ld. Registrar.

The property in respect of POA and registration is the same.

POA was perhaps not registered.

K. GOPALAKRISHNAN (ADVOCATE)     26 November 2011

Normally, whenever, the principal intent to cancel the authority of agent given by way of general power of attorney or special power of attorney, he must cause a letter stating the circusmtances under which he is cancelling the power of attorney and authority of the agent and the agent must have also been acknowledged for the same.  Thus, the temrination of the contract of principal-agent relationship.  Later on, a cancellation of general power of attorney must be registered with the Sub Registrar Office for the original general power of attorney or special power of attorney and the original power of attorney must be endorssed as "cancelled".  When the power of attorney is subsisting, a notarised affidavit from the principal may be obtained by the agent stating that "the power of attorney is still in force and valid".  It is pertinent to note that whenever, the principal or agent dies, the power of attorney of any sort is become invalid.

nilesh chawda (tax consultants)     28 November 2011

power to sale doen not include to power to purchase. one can challenge the deal on this ground 

K. GOPALAKRISHNAN (ADVOCATE)     28 November 2011

There is no difference between sales power and purchase power.  Every power have to be dealt in the same way.

vijaya mohan rao (ameteur)     29 November 2011

Sir, Thanks for advice. This man who is having SPA has gone to Registrar's office and registered property into his own name as a sale deed and principal has registered that sale deed in favour of attorney. In the registered sale deed there is no whisper about existing SPA or its cancellation. Without cancellation of SPA, the principal and agent have registered the property as sale deed in the name of the agent and not to anyone else. Secondly, before existence of SPA the property was already sold away by principal to another person through a registrered doucment called agreement of sale cum power of attorney with posession. I hope I am absolutely clear with you. Therefore, i request you to examine the issue and reply me  the following issues.

 

1. Is there time limitation to implementation of power of attorney and any default expiration clause exists in Registration ACt, 1908?

2. Whether it is proper to exeucute a sale deed  when there is existence of SPA already in force?

3. Whether such sale deed has legal sanctity since SPA is already existing and hence principal is not entitlerd to register the property on his own name but he is empoweed to exeute sale or transfer into the name of any other person. In the instant case, the principal transferred the property into the name of agent through registered sale deed withotu cacelling SPA

4. Whether this amounts to false declarations, statements etc., before the SRO and are they liable for prosecution U/s 82 of Registration Act.

vijaya mohan rao (ameteur)     29 November 2011

Sir, Thanks for advice. This man who is having SPA has gone to Registrar's office and registered property into his own name as a sale deed and principal has registered that sale deed in favour of attorney. In the registered sale deed there is no whisper about existing SPA or its cancellation. Without cancellation of SPA, the principal and agent have registered the property as sale deed in the name of the agent and not to anyone else. Secondly, before existence of SPA the property was already sold away by principal to another person through a registrered doucment called agreement of sale cum power of attorney with posession. I hope I am absolutely clear with you. Therefore, i request you to examine the issue and reply me  the following issues.

1. Is there time limitation to implementation of power of attorney and any default expiration clause exists in Registration ACt, 1908?

2. Whether it is proper to exeucute a sale deed  when there is existence of SPA already in force?

3. Whether such sale deed has legal sanctity since SPA is already existing and hence principal is not entitlerd to register the property on his own name but he is empoweed to exeute sale or transfer into the name of any other person. In the instant case, the principal transferred the property into the name of agent through registered sale deed withotu cacelling SPA

4. Whether this amounts to false declarations, statements etc., before the SRO and are they liable for prosecution U/s 82 of Registration Act.

Advocate Vishnu (Advocate)     29 November 2011

Dear Mohan roa,

Was any money consideration received by the person making the SPA. If the answer is no, then the whole sale is an illegal transaction and you may request the court to cancel the deeds that have been made against the owner( the person who executed this spa).Even if money consideration is present, the sale deed is still void and the spa holder will have to contest only to the extent of recovering money from you and will not be entitled to receive the property.

vijaya mohan rao (ameteur)     29 November 2011

Dear Vish: Thank you very much for your reply. Though sale consideration was mentioned in the registered sale deed there is no proof of payment with either vendor or vendee (Principal/Agent GPA). My problem is whether they can be prosecuted U/s 82 of Registration Act, 1908 and whether offence is congizable or not? It is congizable as per term of impriosonment mentioned in the Sec. 82 as per Sche. II of Cr. P.C. but the Act did not specify cognizzability.  I am not a party to this trsnaction. It is out of come of an invedstigation into which I am a member. 

Advocate Vishnu (Advocate)     29 November 2011

Dear Mohan Rao,

Cognizance in Crpc refers to notice taken by a judicial officer( Ex: Magistrate) and directing the law enforcement officer to take action against an offender.Scheudle II only states whether a prescribed punishment in any other statute apart than Crpc ,is cognizable or not cognizable and whether such offence is bailable or non bailable.


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