1. a power of attorney granted against consideration is irrevocable
2. it survives even the death of the grantor
3. i will look for judgments and share
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Irrevocable power of attorney for consideration
Dear friends. I am looking for authoritative citations for ( especially supreme court) "effect of death of executant of Irrevocable power of attorney Executed for consideration under Agreement of sale" Also on -- need for obtaining consent of legal heirs not necessary. I am following gujrat high court case :bhagawan bhai karambhai bharvad vs arogyanagar coop housing society. I deeply appreciate any help.
Asked 7 years ago in Property Law
Religion: Hindu
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7 Answers
Dear Client,
It is well settled by Hon. SC where the agency is created for valuable consideration and authority is given to effectuate the security and to secure interest of the agent, it cannot be revoked.
Same Legal position has been upheld/clarified by Govt. of India notification.
Irrevocable power of attorney does not come to an end on demise of principal if it is coupled with consideration
As per your query, before the year 2011 GPA transactions are valid even today. I herewith produces one citation, it will help you. "Hardip Kaur vs Kailash & Anr. on 18 May, 2012" , kindly read in detail the said citation. All the best.
Irrevocable power of attorney does not cease to exist on the death of the executor of PoA, if it is created for any consideration.
Judgments:
(i) In Prem Raj v. Babu Ram, 1991 RLR 458, the seller agreed to sell an immovable property to the purchaser and executed two Power of Attorneys in favour of the wife of the purchaser. The seller later cancelled the Power of Attorneys and sued the purchaser alleging that DDA had refused the permission to sell and, therefore, the agreement became frustrated. The seller claimed that he was entitled to forfeit the money received and the possession be restored. Rejecting the plea, Delhi High Court held that the Power of Attorneys executed for a consideration creating interest in the property cannot be revoked or cancelled in view Section 202 of the Contract Act, 1872.
(iii) In H.L. Malhotra v. Nanak Jai Singhani, 1986 RLR (Note) 89, Delhi High Court held the Power of Attorney for a consideration to be irrevocable. This Court further observed that prices of the property have shot up and, therefore, the seller has become dishonest and wants to make more money.
Supreme court in Seth loon Karan sethiya Vs Evan John.
M. Kuppuswami Naidu vs V. Chandrasekhar Reddi And Ors. on 17 September, 2002; AP high court;
The irrevocable power of attorney when clubbed with the interest of the power holder then it is valid to that extent alone even after the death of the principal and not beyond that.
The ratification has to be done by the legal heirs of the deceased principal if the POA is considered as valid after the death of principal..
