Yes it's valid after death in some circumstances depending on the intention of the principal. It can't be teeminated merely after death of principal
GPA valid after death
N the event GPA is coupled with consideration it does not expire on death of principal .section 202 of Indian contract act provides that power of attorney coupled with consideration is irrevocable and cannot be terminated even upon death of principal 2) builder can sell the shares on basis of said POA Good morning sir, My name is mahesh iam from hyderabad ,can you send me relevant judggemets of above said sollution. Thanks and Regards, Y.mahesh kumar
Asked 6 years ago in Property Law
Religion: Hindu
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9 Answers
. In Hardeep Kaur v. Kailash, 193 (2012) DLT 168, Delhi High Court examined the law with respect to the validity of General Power of Attorney under Section 202 of the Indian Contract Act and held that the General Power of Attorney for a consideration in respect of an immovable property cannot be revoked. In Suraj Lamp and Industries Private Limited v. State of Haryana, 183 (2011) DLT 1 (SC), the Supreme Court held that General Power of Attorney transactions convey limited rights under Section 53A of the Transfer of Property Act, 1882 and Section 202 of the Contract Act, 1872. The Supreme Court held that General Power of Attorney transactions cannot be treated as complete transfer but they can be treated as existing agreement of sale and the attorney holder can execute the deed of conveyance in exercise of the power granted. The Supreme Court further held that the General Power of Attorney transactions executed before the date of the judgment can be relied upon to apply for regularization of allotments/leases. The observations of the Supreme Court are as under:-
―12. 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.
Scope of Power of Attorney
13. A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. The power of attorney is creation of an agency whereby the grantor authorizes the grantee to do the acts specified therein, on behalf of grantor, which when executed will be binding on the grantor as if done by him (see Section 1A and Section 2 of the Powers of Attorney Act, 1882). It is revocable or terminable at any time unless it is made irrevocable in a manner known to law. Even an irrevocable attorney does not have the effect of transferring title to the grantee. In State of Rajasthan v. Basant Nehata, 2005 (12) SCC 77, this Court held:
―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 favour 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, the same shall be read as if done by the donor. A power of attorney is, as is well known, a document of convenience.
Execution of a power of attorney in terms of the provisions of the Contract Act as also the Powers of Attorney Act is valid. A power of attorney, we have noticed hereinbefore, is executed by the donor so as to enable the donee to act on his behalf. Except in cases where power of attorney is coupled with interest, it is revocable. The donee in exercise of his power under such power of attorney only acts in place of the donor subject of course to the powers granted to him by reason thereof. He cannot use the power of attorney for his own benefit. He acts in a fiduciary capacity. Any act of infidelity or breach of trust is a matter between the donor and the donee.‖ 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."
Is it clearly held by SC, where agency is created by valuable consideration and authority is given to effectuate security, authority cannot be revoked.
settled law that where the agency is created for valuable consideration and authority is given to
effectuate a security or to secure interest of the agent, the authority cannot be revoked.
Similarly, the Delhi High Court in the case of Shri Ram Murti Singh Sisodia vs. Shri Pratap Singh
Sisodia and Ors, held: The object of giving validity to a power of attorney
given for consideration even after death of the executants is to ensure that entitlement under such
power of attorney remains because the same is not a regular or a routine power of attorney but the
same had elements of a commercial transaction which cannot be allowed to be frustrated on
account of death of the executant of the power of attorney.
The POA with the consideration is applicable on the legal heirs also.
Seth loon Karan sethia Vs. Ivan E john - supreme court;
Ram murti singh sisodia vs. pratap singh sisodia and others - Delhi high court
Bagwanbai karambai Barvad vs. Arogyanagar cooperative housing society - gujarat high court
Though agency if coupled with interest as propounded in section 202 of the Indian Contract Act for making registration purpose the legal heirs of the dead principal require to execute fresh GPA in favour of the constituted attorney.
Mahadevappa S/O Kallappa ... vs Sadanand S/O Rudrappa Pattar, on 4 September, 2012
Bhagwanbhai Karamanbhai Bharvad vs Arogyanagar Co-Op. Housing ... on 21 February, 2003
Dear sir ,
The section itself provides that GPA cannot be terminated automatically on the death of its executor as per following provison of law
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Section 202 in The Indian Contract Act, 1872
202. Termination of agency, where agent has an interest in subject-matter.—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. —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." Illustrations
(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death. (a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death."
(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death. (a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death."
Delhi High Court
Hardip Kaur vs Kailash & Anr. on 18 May, 2012
