I want to buy a property, a residential plot, in Rajkot(Gujarat) and from the documents it is found that Plot Holder has given Power of Attorney (POA), on Stamp of Rs. 70, in 1993, in favour of POA Holder for sale and all type of legal procedure, except receipt of Consideration for the property. The POA is notarized but not registered. On seeking opinion, lawyer opined that,
(i)POA must be registered as held in judgment of Renupova Paul Vs. Sanyasi Charan Gosh [A.I.R. 2005 Cal. 118]
(ii)When POA is not registered, POA Holder can not register Sale deed in favour of Buyer as held in judgment of Manjhunath Anandappa Vs. Tamanna Shah [A.I.R. 2003 SC 1391]
(iii)Even POA is registered, it is not effective after death of POA giver. Therefore , at the time of purchase Property Holder i.e. POA giver must be alive and it is to be ensured that POA giver is alive at the time of transaction by POA Holder as held by the Supreme Court in case of Prahalad Vs Laddevi [ A.I.R. 2007 Raj. 166]
(iv)Ensure that POA is still effective and not withdrawn
(v)Ensure that POA is made on Stamp Paper of proper value by verification from Stamp Valuation Officers
I request learned Lawyers/Consultant, whether the property can be purchased on the basis of above POA or otherwise and if it can be purchased what further action should be taken.
Regards in anticipation of early guidance in the matter.
-Manish Gandhi(mkgandhicustom@gmail.com)
