• Power of Attorney from a Partnership Firm for a sale of Property

I am discussing with a seller to buy a property. The seller holds Power of Attorney. The Power of Attorney was extended by the Partnership firm with all the partners of a Partnership Firm signing it in 2016. The property is in the name of the Partnership Firm. As per the seller, the Partnership Firm is currently dissolved. Under this condition, does the power of attorney extend by the partnership firm remains valid?
Asked 1 year ago in Property Law
Religion: Christian

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10 Answers

POA ceases on dissolution of partnership form 

Ajay Sethi
Advocate, Mumbai
94960 Answers
7576 Consultations

5.0 on 5.0

If the partnership firm has been dissolved then the power of attorney given by the company to a third person stands cancelled automatically unless it was clubbed with interest.

Even in that case, since it's the property of the firm, the power agent cannot sell the property if the firm has been dissolved without the consent of the shareholders and meeting the liabilities of the company upon dissolution.

You may first obtain a proper legal opinion from a lawyer and proceed only if recommended.

T Kalaiselvan
Advocate, Vellore
85158 Answers
2221 Consultations

5.0 on 5.0

Hello Sir,

 

The Power of Attorney executed by a Firm is valid till;

1. The dissolution of the firm by legally.

2. Cancelled by means of a registered cancellation deed.

 

Once the firm is dissolved by its partners or legally dissolved by the operation of law, then the Power of Attorney executed by the Firm is become an invalid document.  However, practically the registration department may register sale deeds based on the POA without knowing the fact that the firm is dissolved.  

Selva Perumal
Advocate, Chennai
339 Answers
36 Consultations

4.9 on 5.0

opinion would not change as POA has been executed by partnership firm 

Ajay Sethi
Advocate, Mumbai
94960 Answers
7576 Consultations

5.0 on 5.0

Whatever the situation, the power of attorney deed was executed on behalf of the firm and not by anyone in his/her individual capacity therefore the POA stands revoked/cancelled automatically upon the dissolution of the partnership firm.

T Kalaiselvan
Advocate, Vellore
85158 Answers
2221 Consultations

5.0 on 5.0

Dear client, The validity of a Power of Attorney depends on the laws of the jurisdiction where the property is located and the specific terms of the Power of Attorney document. In general, a Power of Attorney may remain valid even if the entity that extended it, in this case, the Partnership Firm, is dissolved, as long as the document was validly executed and has not been revoked. However, it is advisable to consult a local attorney to determine the specific legal status of the Power of Attorney in question and its effect on the sale of the property.

Anik Miu
Advocate, Bangalore
9028 Answers
110 Consultations

4.7 on 5.0

Dear Sir,

Since Partnership firm is having independent entity as such on its dissolution the Power of Attorney executed by its partners stand cancelled automatically even if the partners are family members.

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

Dissolution of the partnership firm, being the legal death, automatically invalidates the PoA, as the death of an individual principal doe so the PoA executed by that person. Family members being partners in the firm does not alter the legal position in any manner.

Swaminathan Neelakantan
Advocate, Coimbatore
2823 Answers
20 Consultations

4.9 on 5.0

- Since, the said partnership firm already dissolved then that POA not having legal value . 

- Hence , the said POA holder cannot transfer the property of the firm in the name of others. 

- If the partners were the family members , even then the said POA is not valid 

Mohammed Shahzad
Advocate, Delhi
13374 Answers
199 Consultations

5.0 on 5.0

If it's dissolved then you should take indemnity bond from the partners for said amount to safeguard your interest 

Prashant Nayak
Advocate, Mumbai
32092 Answers
183 Consultations

4.1 on 5.0

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