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Vikas Sharma (Company Secretary)     03 August 2016

Property dispute

In connection with a civil dispute, Kindly enlighten to the following queries:-

1. A Power of Attorney holder sells the property, accepts money in his own account and do not pays to the Principal. What is validity of such sale.

2. Property was purchased by brothers in the name of their mother, in around 1970-75. Father died around 80's. Do the daughter / sister of said brothers, have the inheritance right in light of the supreme courts judgement.

3. In case of disabled persons, whether the court fee is exempted in cvil suits? Is there any limit of disability for exemption.

4. Where property has been sold in considerable under valued amount, what other recourse can the Principal of POA can opt for.

Thanks in advance.



Learning

 5 Replies

Kumar Doab (FIN)     03 August 2016

The counsel that has examined all dcos on record can advise the best.

Generically speaking:

If right to sell was vested thry POA and POA was not cancelled and principle was alive then sale by POA holdr should be valid.

If property was in the name of mother then she being owner/title holder can sell, sign POA to sell.

The said judgment of apex court is for property from father's side and not mother's side.

 

If POA sold for agreed value as in agreement to sell and if POA was valid then what is the defect.

 

 

Augustine Chatterjee,New Delhi (Advocate & Solicitor at Law)     03 August 2016

If the Power of attorney holder was authorised vide the POA to sell the property, then the sale is valid. The executor of the POA if not paid, can sue to recover the consideration amount of the sale.

2. Since the property was purchased prior to 1988, the transaction shall not be hit by the benami transaction act. However the recent Supreme Court judgement shall not affect this case, as the said judgement is only applicable on ancestral property. The sisters/daughters of the said brother shall not have any right over the saidn propertry as the same is in the name of the mother. The fact that the said brothetr paid the sale consideration is immaterial.

Augustine Chatterjee

9999931153

Advocate & Solicitor at Law

Kumar Doab (FIN)     03 August 2016

If the status/nature of the property in the hands of mother is absoloute/self acquired then no one has any forced share in it.

 

If the mother is  not alive and has not disposed the property in her life time by any valid deed then her property  shall be equally shared by her spouse and sons and daughters.

 

If terms of the POA are that the proceeds are to be paid to owner/principle then the principle or legal heirs can proceed to recover.

 

Sonia malhotra   04 August 2016

If POA holder sells the property during the life time of the principal and POA is not cancelled then the sale made by the POA is valid .If the principle doesnot gets the sale considerationthen he can file recovery suit to recover the same. The property once purchsed in the name of woman becomes her self aquired property and the the brother who purchased the property in the name of mother donot have any right in the property during her lifetime. After the death of mother if a will has been executed then it goes to the person in whose favour will has been executed and if there is no will then it will be equally distributed among aall legal heirs Sonia malhotra 9953611602

adv.bharat @ PUNE (Lawyer)     05 August 2016

If the Power of attorney holder was authorised vide the POA to sell the property, then the sale is valid. The executor of the POA if not paid, can sue to recover the consideration amount of the sale.


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