CONSIDER FOLLOWING SITUATION
MRS. "A" is an aged woman. She owns a land property (which her father aquired under Tenancy Act as a tenant) which she wants to sell. The property can not be sold without permission of Dy. collector U/s 43 of Tenancy Act. She has decided to sell the property to Mr. "B"- an agriculturist for specific agreed consideration, after getting due persmission. However she is in immidiate need of the entire sales amount and she is not capable of completing all procedures of sale. Therefore the transaction takes place as under
MRS. "A" executes and duly registers a "Sathe Khat" agreement to sell without possession in favour of MR. "B" with FULL payment of agreed consideration and by paying FULL amount of Stamp Duty.
Immediately She also executes and duly registers a Power of Attorney in favour of MR. "B" on 100/- Stamp Paper specifically relating to the said property and making specific mention that aforesaid "Sathe Khat" is executed, and that she being not capable of completing all the formalities of sales permission and execution of final sale deed, she empowers and appoints MR. "A" to do all the necessary acts in this regard on her behalf.
MR. "A" then obtains due permission from Dy. Collector for said sale of land. As a PoA holder he completes all the statements, Jabab etc. on behalf of MRS. "A' and he gets the permission.
On getting the Permission MR. "A" himself executes final conveyance of land in his favour as per permission received, in his favour.
IS THE ABOVE TRANSACTION VALID IN VIEW OF DECISION OF APEX COURT IN CASE OF
