power of attorney holder cannot further delegate his power to third party . only in case where there is specifi provision in power of attorney authorising him to further delegate then only such delgation can be done
Documents required under such property dealing
Sirs / Madams One Builder Firm from Karnataka constructed 62 Flats in Maharashtra and sold 61 Flats out of them in 2014 and collected 90 % payment from the Purchasers of the Flats and accordingly completed about 85-90% of the construction, too But due to some disputes between partners in the Builder Firm, the work halted for 03 years and not yet completed Recently, they partners settled and gave POA to their one of the Partners namely “Mr X” to complete the constructions up to the stage of “Ready to use” and hand over possession of Flats to their Purchasers and collect balance sale-consideration from the purchasers of Flats and settle the matter permanently Now that partner MR. X executed “Deed of Assignment” with the third party namely Mr B to do all works on his behalf and on behalf of the said Builder Firm on the terms and conditions as mentioned therein. Mr.B wants that payments from Purchasers should not go in the name of the Builder’s Firm but all payments should come in his name. So he went to do registration of the said "Deed of Assignment" but they said to do adjudication, etc. etc. thereof Now Mr B wants to inquire that (1) Mr B needs to collect all balance sale-consideration from the Purchasers in his name and not in the name of the Builder’s Firm. (2) Mr B further needs to assure that if any of the Purchasers of Flats does not pay then he can cancel the said sale – transaction and resell the said Flat to third party and can make Agreement to Sale with them and can sign all sale documents on behalf of the said Builder’s Firm and can collect sale-consideration in his name instead of Builder’s Firm's name So Mr.B is intending to have registered irrevocable POA from the partner Mr X specifically mentioning therein that (1) “Mr. B is authorized to collect balance sale-consideration from the Purchasers of the Flats in his own name on behalf of the said Builder’s Firm and Mr. B is further authorized to discharge receipts of the said payments on behalf of the said Builder’s Firm. (2) “Mr. B is further authorized to lawfully cancel the old sale-transaction with any of the purchasers thereof and can resell the said Flat/s to new parties and can execute sale-deeds/s with them on behalf of the said Builder’s Firm and can collect sale-consideration from such Purchasers in his own company’s name on behalf of the said Builder’s Firm. The said Partner Mr.X is ready to sign any / all papers which Mr B says Querry Whether such POA will suffice requirements for above purposes ? Also Please give your valuable suggestions to secure Mr. B please… Regard HARIOM
Asked 8 years ago in Property Law
Religion: Hindu
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7 Answers
delegatus non potest delegare : A power which has been delegated can not be delegated further and therefore the person to whom the POA has been given can not delegate the power further.
Exception to this is just that if there is a clause to this effect in the POA itself that he can delegate the power. Please peruse the POA that has been given by one partner to Mr. X if it has a clause that further Mr. X can delegate the purpose then the same can be done otherwise the POA can not be executed
Regards
Yes Shri Anilesh Tewari and Ajay Sethi ji Sir, This is not my main query my main Query is different for which I expect proper Reply from this Forum. First of all Mr X is also a Partner of the same Firm and secondly POA given to him contains such provision to delegate POA to others Regard HARIOM
Asked 8 years ago
partners settled and gave POA to their one of the Partners namely “Mr X”: This means that a right to perform a specific thing has been given to Mr. X.
Be that as it may, if POA has a clause that further right can be delegated then Mr. B is at liberty to get a POA from MR. X giving effect to the clauses as placed by you.
Regards
1) if there is such provision in POA then X can execute POA in favour of B authorising B to collect balance payments from flat owners abd issue receipt
2) however when flat owners have paid 90 per cent of sale consideration how can you cancel agreement with them
3) you can recover balance amount with interest from such flat purchasers . Refuse to give possession until balance amount paid . Cancellation of agreement is draconian step
4) did the original agreement with flat owners contain a clause of cancellation of agreement for failure to pay balance amount ?
Hello sir , both of them can prepare a MOU ( memorandum of understating ) ... All the agreed terms and conditions can be mentioned in the MOU .. Both the parties will remain bound by the said undertaking
Querry
Whether such POA will suffice requirements for above purposes ?
Also Please give your valuable suggestions to secure Mr. B please…
The proposed arrangement between X and B is not maintainable in law or facts.
The buyers originally entered into a sale agreement with the builder's firm and not with any individual.
The present agreement or arrangement between X and B is their own affair.
The builder's firm is responsible to complete the construction of the flats and hand over possession to the buyers as per law.
In fact the agreement among the partners of the builder's firm is also their own affair and private, it is not binding on the buyers, and the innocent buyers should be victimised due to their whims and fancies.
The builder firm is just a power of attorney holder of the land owner hence they cannot violate the conditions of the agreement entered with the landowner.
The builder's firm just have a power of attorney to sell the property to the buyers hence they cannot once again give power of attorney to another person to do the same act.
There are legal complications involved in it and such arrangements may not be enforceable if the aggrieved party approaches court with a complaint or suit..
This is not my main query my main Query is different for which I expect proper Reply from this Forum.
First of all Mr X is also a Partner of the same Firm and secondly POA given to him contains such provision to delegate POA to others
In my opinion, a power of attorney agent cannot once again delegate his powers to another agent.
The builder's firm is already a power of attorney agent of the land owner, hence any such move by them may not be valid in law and cannot be enforced in court of law.
You can have a personal discussion or consultation with an experienced lawyer in the local in this regard.