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jeevan (Engineer)     25 January 2012

Rectification deed for property sold via reg.gpa holder

Dear Sirs, 

I am totally new to this group, but joined positively after reading excellent comments by experts to the Questions posed. now i have a question which i could not get an answer here in the forum.

party A gives the Reg.GPA to party B in 1994, and party B executes the Sale deed(30x40 site) to Party C on behalf of party A in 2004, Party C has built a house and enjoying the property in mutual understanding with Party B since 1995, now the Party C in 2012 recognises that the Survey number in the Sale deed is wrongly mentioned as 22/5 . but party C obtained the RTC of Party A and sees that the Actual Survey number of Party A is 22/8, This mistake Party C wants to rectify and make a rectification deed.

But here is a trickiest part in this threat.Party C in understanding with Party B has built a house in 1995, and has been enjoing the property till now which is in 22/8.and the survey number mentioned in Reg.GPA to PartyB which he obtained from Party A is 22/5(Actually it should be 22/8), (party A might have got confused with the survey number as he has many survey number propertis in his name in the village and showed a piece of land to PartyB and executed GPA to him).

Now the Party A is not alive, and Party C wants to rectify this mistake in the Sale deed registered him.how it should be executed.

1) Can Party B execute this Rectification deed with Party C?. is it a valid transaction in the eye of law.?

2)Or Party A should execute this with Party C?... since Party A is not alive, does Party B has the power to execute this ???

3)Or it should be done by the Party A's  legal heirs?? what if they refuse to agree to this??.....what is the alternate way if Party A's legal heirs refuse for this...

As i read in other discussion forum's an excellent solution by the experts , request all the experts view on this topic...

Thank you all in Advance!

Regards

Jeevan



Learning

 12 Replies

Ashish Chakravarty (Advocate)     26 January 2012

Jeevan, once A died his POA in favor of B  was rendered useless, i.e. POA is only valid and of use while the executor is alive and as such now B cannot execute any amendment deed or any other deed in C's favor on behalf of A. Now C can exercise two options, Option No.1 either contact the legal representatives of A, particularly the one upon which such property has devolved after the demise of A and get the amendment deed executed in C's favor and if possible also add the remaining Lr's of A as consent givers/ Non objectors in that deed to avoid any future problems or technicalities or Option No.2 File a suit for declaration and consequential relief in a civil court and implead all the Lr's of A as defendants and get a decree in C's favor.

jeevan (Engineer)     26 January 2012

Dear Ashish,

Thanks for your quick reply.little more clarity required.

1)if Party A is alive still and then would it be possible for Party B to execute this rectification deed in favor of Party C without Party A' s presence???

2) and also i read the Sec.202 of Indian Contract Act, 1872, which states that

"" Termination of agency where agent has an interest in subject- matter.- Where the agent has himself an interest in the property which forms the subject- matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest.
 
Illustrations
(a) A gives authority to B to sell A' s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death.
(b) A consigns 1, 000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself, out of the price, the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death. ""
 
My interpretation from the above test case is that , the illustration (a) mentioned above exactly matches the scenario in my  discussion topic.. and as per this the Executed GPA by Party A  to Party B will still be valid and in power.... what is your view on this.??? correct me if am wrong..
 
Thanks
Jeevan

Ashish Chakravarty (Advocate)     26 January 2012

Answer to your first query Yes B can execute such amendment deed in favor of C without A's presence, provided that the GPA still is in force and has not been revoked by A or if it indeed has been revoked by A then intimation of such (Regd.) revocation has not been formally communicated to A.

Answer to your Second Query :-  You will have to specify the interest of the agent first without which i would not be able to comment any further, If the agent i.e. B had actually purchased the land from A ( without any formal Sale Deed or B was a broker or a middleman) or had any agreement as such then you are basically referring to agency coupled with consideration cannot be revoked by the Principal, yes but you have to consider the ruling of Hon'ble SC in case of Suraj Lamps Pvt. Ltd. and its subsequent latter ruling too wherein the SC has held the gpa poa sales etc to be void. If the interest of such agent is something else then you need to specify that first because those illustrations are from Contract Act and they deal with two different matters, what is your exact scenario has to be ascertained first, i hope you are getting my point.

jeevan (Engineer)     26 January 2012

Dear Ashish,

I am ok in understanding the explanation for 1st query.

but the second one , i am really not. let me put it in brief the actual case, A gives Reg GPA to B for A's property.by which B gains the right of performing varities of interest like executign deeds,sell, avail loan, motgage, manage legal conflicts, and it is also mentioned that B can perform other any transactions or actions as required for the A's property , and this has been mentioned in the Reg GPA to B from A. with this B also executed Sale deed to C, now there is a mistake in C's sale deed executed by B alone.and this needs to be corrected.i think now you are clear what kind of interest does B has on A 's proprty Via GPA.

And also i am aware on the SC ruling about Suraj Lamps Pvt Ltd case in 2011, does that mean all transactions held via Reg GPA before 2011  will be null and void,,,???

Thanks

Jeevan

Ashish Chakravarty (Advocate)     26 January 2012

Jeevan, if A is dead then no B cannot execute an Amendment Deed on basis of POA of A in favor of C, this is what i have told you and i stick to it unless you clearly specify what personal interest did B had in the property sold by the POA by A through B and no you have not clarified what was the personal interest of B, i hope you are getting me now.

And no transactions held via Reg GPA before 2011 will not be null and void as the operation of that ruling is not retrospective and it also does not hit Genuine POA etc, i would suggest read the ruling again, things ought to clear out a lil more.

jeevan (Engineer)     26 January 2012

Dear Ashish,

I am not getting the word personal interest, do you mean, why did B got a POA from A??... so for this,

Actually A wanted to register the property to B (sale deed), but 1994 there was no registration of revenue sites,formed in agricultural Land (May be it was stopped momentarily at that time), and hence A gave Reg POA to B so that he can get it registered in anybody's name later on. and also for your info B and C are husband and wife respectively.

does this clarify you??.. hope it does if i had understood the words personal interest.

I need to know how to proceed further in this case.

Thanks in advance

Jeevan

Ashish Chakravarty (Advocate)     26 January 2012

I am sorry i am not getting anything at all ! A could not execute a Sale Deed in favor of B so he gave B a POA , right ? and as soon as the restriction got lifted off B exercised the POA and executed a sale deed in favor of C right ? If this is what you are telling me then whatever i have told you before stands good. By personal interest i mean that did B paid any money to A or was anything outstanding from A to B?

jeevan (Engineer)     26 January 2012

ok, i got your point now.

in the POA given by A to B, eventhough B has given lumpsum money to buy the land, it is mentioned that where as A is unable to look after A's Property and appointed B as a Attorney Holder to look after A's property, manage, execute... etc. etc...

So this means i think what ever you have expalined before is right. so the options for this case are

1) execution of rectification deed by A's Lr's. this is most risky in my case, since A's Lr's are not aware of this and if they are informed about this then they will extarct juice out of this issue.

2) obtain court decree in C 's favor. but how much time will it take?, what is the gaurantee that the judgement will be in C's favor... for this all A's Lr's have to be informed right.??..... as of now A's Lr's are not aware of this and they are quite and B& C are happy..

3) is there any possibility that this survey number mistake can be rectified in the new sale deed executes by C to party D, i mean, change the survey number as actual (like 22/8, instead 22/5) and execute sale deed by C to D.how safe is this.

4), and one last thing,what happens if B executes this to C not disclosing that A is not alive , just wanted to check all the possibilities.what are the problems in future......

 

Thank you for your precious inputs

Jeevan.

Ashish Chakravarty (Advocate)     26 January 2012

Jeevan,

That ruling i cited above is applicable in this case, the sale to B was a poa sale deed and is squarely covered under the Suraj Lamp case anyway id leave it at that.

If B executes a Sale deed through that POA after the demise of A it would be void and you would not get any rights from the same.

Going the court case route, well its a expensive, lenghty, risky and difficult procedure and if you lost the case then things might get from bad to worse for you, however if u won it would be the last of it, hopefully if the other parties dosent prefer appeals.

If C executes a Sale Deed In favor of D with the corrected No.s then the position would not really change as C would be selling something which she never purchased in the first place ( as per papers) however the execution of sale deed is possible. 

There is one other way but i wont discuss it here, contact a lawyer maybe he would figure it out.

jeevan (Engineer)     26 January 2012

hello Ashish,

thanks for the clarity......i would contact my lawer for this...

so nice discussing with you...

Thanks

Jeevan

Mohammed Ummer (Manager Operations)     07 February 2012

Dear Sir,

I am in verge of buying a property in Bangalore there is a problem is that in the sale deed it is mentioned that East to West is 60 ft & North to South is 54Ft+56ft/2. but when we measure it that is reverse case East to West is 54ft& North to South is 60Ft . The owner told that they will get rectified this deed since it was a small mistake in getting to know the direction more over the party from whom i am buying is the second party were as the first owner sold to one more party & that party sold to my owner now.& i am buying from the second owner .

Now the problem is that first owner available in town & second party is not there , the owner told that he will get a rectified deed from the 1st owner is that ok for rectification deed pl advise.

How do i go about it as i had already paid advance of 100000 for the propery.

Regards

Mohammed Ummer

jeevan (Engineer)     08 February 2012

Rectification deed from the person who has committed mistake is only acceptable, whether its first  or second party, make sure that this rectification deed is done by the very first owner to the owner you are buying from.. and this deed of rectification should be mentioned in your sale deed, and correct schedule can be mentioned in your deed. 


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