Guruswamy Basavaiah (Specialist) 03 November 2014

Power of attorney by the partners of a firm to one of them

I am purchasing a property from a real estate firm. Two partners own the firm.

In a "Deed of Reconstitution" of stamp paper of 1000 Rs Third partner is introduced. And in the same "Deed of Reconstitution" First partner and Third partner have given Power of attorney to second partner to execute the sale deed.

Now second partner says only he will sign the sale deed on behalf of firm and first and third partners will not sign.

1) Is this valid, can i go ahead with the purchase. Or should all three parties should sign the sale deed. ?

2) Do this "Deed of Reconstitution" need to be registered with registrar ?

Guru

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2 Replies

T. Kalaiselvan, Advocate (Advocate) 06 November 2014

If the deed of reconstitution empowers the third person to sell the property and execute the sale deed and the said deed has been properly registered with the concern registrar's office, it will be held as valid.

Guruswamy Basavaiah (Specialist) 06 November 2014

Hello sir,

Thank you for the response.

This deed of reconstitution is given to "Registrar of firms" and got the Form C.
IS this enough or do they need to get this "deed of reconstitution" registered separately.

Guru