Cancellation of registered GPA
Sir, "A" (principal) gave registered GPA for the land to "B" (Agent) in 1993 and "A" received full amount from "B" at that time. "C" got selling rights of that land from "B" (Agent) through compromise petition obtained from Addl subordinate court in 1998. Original documents of that land are retained with "A" and original GPA document is retained with "C" (compromise agent)."C" (compromise agent) has not yet sold it to anybody. As on date, A,B,C all are alive.
My Questions are:-
1. It came to know that Supreme Court ordered to convert the registered GPAs into sale deed within some time period. Otherwise those GPAs will be cancelled. Is it true ? If true, what is that time period (please mention from date and to date).
2. Can "A" (Principal) have any rights on that property ?
3. Can "A" (Principal) cancel that registered GPA ? If yes, will any legal problems be raised from "C" (Compromise agent) ?
4. "C" (Compromise agent) sell that property (convert into sale deed) to third party directly without requiring the signatures of "A" (Principal) ?
Sir, I am waiting for your valuable advice please.
Asked 1 year ago in Property Law from Guntur, Andhra Pradesh
1) once irrevocable power of attorney has been executed by A in favour of B for valuable consideration power of attorney cannot be cancelled by A
2) B in turn has given C selling rights for said property as per orders passed by court
3) C can sell the property as per court orders
4) however it is better that sale deed be executed by B in favour of C as per power of attorney to avoid legal complications in future
5) in order to confer clear and marketable title to property sale deed is necessary in favour of C
6) signature of A is not necessary as irrevocable power of attorney has been executed by A in favour of B
Hi, General Power of Attorney is an instrument to act on behalf of the Principal so even though the Power of Attorney registered it can be cancelled at any time by the principal.
2. As per as my knowledge is concerned there is no such Supreme Court ruling that registered GPA may be converted into Sale deed.
3. Principal is the absolute owner of the property and he has given Power of Attorney to sell the property and if he sold the property on behalf of the principal then it becomes valid sale deed and if the Principal has power to cancel the GPA at any time.
Any contract of sale (agreement to sell) which is not a registered deed of conveyance (deed of sale) would fall short of the requirements of Sections 54 and 55 of Transfer of Property Act and will not confer any title nor transfer any interest in an immovable property (except to the limited right granted under Section 53A of Transfer of Property Act). According to Transfer of Property Act, an agreement of sale, whether with possession or without possession, is not a conveyance. Section 54 of Transfer of Property Act enacts that sale of immoveable property can be made only by a registered instrument and an agreement of sale does not create any interest or charge on its subject matter.
In State of Rajasthan v. Basant Nehata, it is held by the supreme court that A grant of power of attorney is essentially governed by Chapter X of the Contract Act. By reason of a deed of power of attorney, an agent is formally appointed to act for the principal in one transaction or a series of transactions or to manage the affairs of the principal generally conferring necessary authority upon another person. A deed of power of attorney is executed by the principal in favor of the agent. The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed. An attorney holder may however execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor.
GPoA is revocable at any time if attorney did not work for the execution of the GPoA. if attorney has done any work or attained any interest in the subject matter of POA then it can not be revoked, according to section 202 of contract act- 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.
1. Registered POA if it is not time stipulated , i.e a specific time or period is not mentioned is valid till the Executor of it can cell or revoke it.
2. If the property has not been transferred to any third person or the agent to himself before the cancellation or revocation of POA the principal has the right.
3. A can transfer the POA any time, however "C" can sue him for not completing the contract after taking the payment.
4. If "C" has a power of attorney issued by "B" , he can directly sell the property and he does not need the signatures of "A" as "C" is empowered to transfer ,execute through a POA by "B".
you have right to cancel this GPoA, principal has right in the property and it is absolute right. GPoA is executed for special purpose mentioned in GPoA. attorney is the agent of principal, if he commits any misconduct, disobey, or breach of duty then principal has right to cancel the GPoA but before accruing any right by third party in the property or subject matter.
1. What is the authority conferred on B through the GPA executed by A? Was he given the authority to sell?
2. You have stated that a compromise took place in the court where C got "selling rights''. What is the nature of the case which was filed in the court and which ended in recording of a compromise? If the "selling rights" were given to C then why are the original documents with A?
3. Normally when a compromise takes place in the court the GPA is cancelled. It is surprising that in this case it has not been.
1. There is an Order pass by Supreme court in the year 2012 in the matter of Surya Lamps ...Vs... State of haryana wherein sale through GPA to builder/non raelative was disallowed,
2. Since the above GPA was not with retrospectve effect, A as no right on the property now,
3. After C got selling right through a compromise settlement, the story of GPA executed by A is over now,
4. The order passed against the Compromise Petition submitted by C is required to be seen for answering this point roperly. HHowever, if C has got the selling right from the Court, he can certainly sell the said property.