You can execute POA in favour of builder however it should mention that builder can develop property only  after stay order is lifted and court permits development of property 

Based on your narration of the subject, GPA can be given to the developer mentioning all the current legal issues tide up with your property. 

It is not advisable to give a GPA (General Power of Attorney) to a builder when there is a stay order on the property. A stay order essentially halts any transactions or actions related to the property until the court resolves the underlying issue. 

Giving a GPA under these circumstances could be legally risky and may not be recognized by the court. 

A stay order prevents any dealings with the property, including transfers of ownership through a GPA

Entering into a GPA agreement while a stay order exists could lead to legal complications and potentially invalidate the agreement. 

The builder would give false promises to take care of the same even during the pending litigation whereas this would be considered as an act of contempt of court order.

When ther is a serious legal complication the builder will easily escape claiming innocence even if you have mentioned about the pending litigation in the GPA

The appropriate course of action is to resolve the issues that led to the stay order before proceeding with any property-related transactions. 

In short, avoid giving a GPA to the builder while a stay order is active on the property.

- If there is stay order from the Court , then legally you cannot enter into any agreement with the builder or anyone without the permission of the Court. 

- Further, as your siblings got a stay order from the Court , then they can file a contempt petition before the same Court and even they can lodge a compliant for the non-compliance of the order of the Court. 

Dear querist, 

You have informed that a developer has approached you to purchase your self-acquired property. However, your sibling has obtained a stay order from the civil court restraining any sale or transfer of the said property. In light of this, the developer has suggested that you execute a General Power of Attorney (GPA) in his favour, authorizing him to handle the legal proceedings and proceed with development only after resolving the pending litigation. You have also asked whether the GPA can mention the ongoing legal issues related to the property.

Based on the facts provided, you may execute a GPA, but it must be carefully drafted and strictly limited in scope to avoid any violation of the court’s stay order. The stay order currently in force prohibits the sale, transfer, or any development of the property. Any act done in breach of the stay may amount to contempt of court and may also be declared void or illegal by the court.

You may authorize the developer through a registered GPA to assist you in the legal proceedings, including representing you in court, filing applications, engaging advocates, and taking necessary steps to have the stay vacated or the matter resolved in accordance with law. The GPA can and should clearly mention the details of the pending civil suit, including the OS number, parties involved, and the nature of the stay granted. The document must explicitly state that the developer shall not carry out any sale, construction, or development work on the property until the litigation is fully resolved or the stay is vacated by a competent court.

The GPA must not contain any clause that indirectly enables the developer to bypass the court’s restrictions. Any power granted to deal with the property in a manner contrary to the stay order can expose both you and the developer to legal consequences.

A properly worded, conditional, and registered GPA, limited to legal assistance and compliance with the court proceedings, may be executed for the specific purposes discussed above.

If any assistance is required in drafting or registering such a legally compliant GPA, the querist may feel free to contact me.

Yes you can give gpa but not for selling as there is an injunction. If there any injunction then for that purpose gpa can’t be given other than that it can be given 

It is highly advisable to exercise extreme caution and seek independent legal advice before proceeding with giving a General Power of Attorney (GPA) under the circumstances you've described.

Why a GPA is Risky in this Situation:

1. Violation of Court Order: A stay order "not to sell" is a direct prohibition from the court. While a GPA doesn't directly transfer ownership, it grants the attorney-in-fact significant powers over the property. If the developer, acting under the GPA, takes steps that the court interprets as an attempt to circumvent the stay order (even if it's "solving the legal matter"), you could be held in contempt of court.

2. Scope of GPA and Potential Misuse: A GPA can be very broad. Even if you try to limit it, granting a developer the power to "take care of the rest" and "get it solved in a legal manner" opens the door to actions you might not foresee or approve of. They could, for instance, enter into agreements, incur liabilities, or even attempt to transfer the property (though likely blocked by the stay, it creates a messy situation) without your direct involvement.

3. No Guarantee of Resolution: There's no guarantee the developer will successfully get the stay order vacated. Legal battles can be protracted and expensive. If they fail, you're left with a GPA out there, potentially a more complicated legal situation, and no sale.

4. Financial Implications and Control: Who bears the legal costs for resolving the stay? If the developer pays, what are their expectations for reimbursement or a reduced purchase price? A GPA gives them control over the legal process, but you, as the owner, remain ultimately responsible for the property and any outcomes.

5. Risk of Fraud/Misrepresentation: While not implying your developer is dishonest, any situation involving property and significant legal hurdles carries an inherent risk. A GPA gives them considerable power over your asset.

6. Binding Agreements: If the GPA allows the developer to enter into agreements related to the property (even for legal resolution), you could be bound by those agreements, even if you disagree with them later.

Can you mention current legal issues in a GPA?

Yes, you can mention the details of the court case and the stay order in a GPA. You can even specify that the purpose of the GPA is to authorize the developer to take steps to get the stay order vacated. However, this does not make it legally sound or advisable given the direct court prohibition on selling the property. The act of giving a GPA with the ultimate intent of facilitating a sale, while a stay order not to sell is in effect, could be problematic.

What you should do:

1. Consult an Independent Property Lawyer: This is the most crucial step. Do not rely on advice from the developer or anyone else with a vested interest. A lawyer specializing in property law and litigation will:

   • Review the court order and the specifics of the stay.

   • Advise you on the legality and risks of issuing a GPA under these circumstances.

   • Explore legitimate legal strategies to get the stay order vacated, separate from any developer involvement.

   • Explain the implications of contempt of court.

2. Focus on Vacating the Stay First: The most straightforward and legally sound approach is to focus on getting the stay order vacated before entering into any agreements or arrangements related to selling the property. Once the stay is lifted, you will be in a much stronger bargaining position and can sell your property without such complex arrangements.

3. Understand Alternatives: Your lawyer can advise if there are any other legitimate legal mechanisms to proceed, although with a direct "not to sell" order, options are usually limited until the stay is lifted.

Dear Sir/Madam,

it is suggested that what kind of stay is there by the court in relation to said property. This fact is not coming in the query. Hoewever, it is made aware to you that there is a principle of LIS PENDIS - according to which the transfer of the property would be treated as null and void. You are suggested to read the order and find out as to what kind of stay granted by the court, then proceed accordingly saving yourself. 

You should NOT give GPA while there is a stay order on sale.

• A court stay on sale means no alienation or transfer, including through GPA, even if conditions are added.

• Executing a GPA in such cases may be viewed as circumventing the stay and can lead to contempt of court.

What You Can Do:

• Wait until the stay is vacated or court permits limited GPA for non-sale purposes.

• If urgent, file an application before the same court seeking permission to execute GPA with full disclosure.

Even mentioning OS number and legal issues won’t validate a GPA that violates a stay order.

DEAR SIR,

You can give a GPA, but with restrictions. It must not violate the intent or scope of the stay order.If the GPA is merely for managing the property or assisting with legal formalities (e.g., appearing in court, managing the land), and explicitly states that the agent shall not sell, transfer, lease, or develop until the stay is vacated, it might be permissible.

So far as the GPA doesn't contain any power to sell, it won't violate the stay order 

But the fact that you are giving a GPA to a developer who is interested in the property, means you are sort of creating third party interest which would be in breach of the stay order 

Advise:

You are advised to file an application under Order 39 Rule 4 of CPC, to set aside or modify the stay order. You can argue on the following merits:

If you want to enter into an agreement with the developer, then entering into a Letter of Intent (LOI) or MOU would be a better option. The LOI/MOU should include details about the stay order, no right arises until the case is resolved (stay order set aside/modified). You should make sure not to transfer the possession to the developer.

Yes, you can execute a General Power of Attorney (GPA) for your property even if it is under a court stay order, but with strict limitations.
If the court has granted a stay against sale or transfer, any attempt to sell, alienate, or transfer the property — directly by you or through a GPA — would be legally invalid and may amount to contempt of court.

However, you are still permitted to grant a GPA to authorise the following:

• Representation before the court.
• Pursuing legal remedies to have the stay vacated.
• Managing municipal, revenue, or administrative matters.
• Applying for development permissions, provided the court order does not specifically restrict such actions.

To protect yourself legally, the GPA should be carefully drafted as a limited-purpose GPA, which:

1. Clearly records the details of the court stay order, including the OS number and the relevant court.
2. Expressly limits the developer’s authority to pursuing legal remedies to vacate the stay — no authority to sell, transfer, or create third-party rights.
3. Authorises the developer to:

• Engage advocates and legal professionals.
• File applications, affidavits, and represent you in court proceedings.
• Handle administrative matters once the stay is vacated.

This ensures that your actions remain within the boundaries of the law while enabling the developer to assist you in resolving the legal impediment.

Pls do connect for any further help 😊

Yes, you can give a limited-purpose GPA, but not for sale or development while the court stay is in force.

You may authorize the developer to handle legal proceedings and mention the pending case (OS number, stay order) in the GPA. Clearly state that no sale or construction will happen until the dispute is resolved.

Use a notarized, revocable GPA only for legal follow-up. Avoid giving sale rights to prevent contempt of court or misuse.

Query: Can I give GPA to a developer for my self-acquired property, which is currently under a stay order due to a pending court case filed by my sibling?

Short Answer:

You can technically execute a GPA in favor of the developer, but doing so while a court-issued stay order is in effect over the property is legally risky and may amount to contempt of court, depending on the nature of the stay. Extreme caution is advised.

Detailed Legal Analysis:

 1. Nature of Stay Order is Crucial

• If the stay order is a specific injunction restraining you from alienating, transferring, or creating third party rights over the property:

  Then, executing a GPA that authorizes the sale, development, or creation of rights may be in direct violation of the stay order.
  This can lead to Contempt of Court proceedings under the Contempt of Courts Act, 1971.

• Even if the GPA includes a clause stating that the developer will only act after resolving the court case, the act of creating GPA itself may still be challenged by your sibling as intent to circumvent the stay.

 2. What Does the Developer Want the GPA For?

If the sole purpose of the GPA is:

• To contest the ongoing suit on your behalf,

• Appear in court, engage lawyers, and resolve legal issues,

Then it may be permitted, but must be limited in scope (i.e., not a general GPA allowing sale or development).

Risks Involved in Giving GPA Under Stay Order

1. Violation of Injunction: Even a conditional GPA might be interpreted by the court as violating the spirit of the injunction.

2. Challenge by Sibling: Your sibling can seek court action against both you and the developer, including:

   • Application for contempt

   • Cancellation of GPA

   • Additional stay on the developer’s actions

3. Developer's Actions Binding on You: Once GPA is executed, any wrong action taken by the developer may legally bind you as principal.

4. Loss of Control: Developer may act beyond the agreed scope, leading to further legal complications.

GPA is Not Sale – But Still Can Be Questioned

While GPA does not amount to a sale, the Supreme Court in Suraj Lamps Case (2011) has clarified that:

GPA cannot be used as a substitute for sale, and courts are to examine such arrangements strictly, especially where third-party rights are being created to bypass restrictions or litigation.

What You Can Do Safely:

If you still wish to give the developer legal authority:

1. Draft a Limited Purpose GPA

• Restrict it only for litigation management, i.e.:

  • Representing you in court proceedings

  • Hiring lawyers

  • Filing affidavits, applications, etc.

 2. Include Full Disclosure in GPA

• Mention all pending litigation:

  • OS No., parties involved, stay order details

• Clearly state that:

  “No action, including sale, agreement to sell, development, possession transfer, or creation of third-party interest, shall be undertaken until the said litigation is resolved and the court order permits such action.”

 3. Attach Stay Order to GPA

• As annexure to GPA, so it is on record that the GPA holder is fully aware and bound by legal restraints.

Final Legal Position

• Yes, you may mention all legal disputes and issue a restricted GPA, only if its purpose is non-transferable in nature and fully compliant with the court’s order.

• You should not give a broad or development-based GPA while the stay order is in effect.

• You must consult your advocate to draft a custom GPA that does not breach the stay and is defensible in court.

Dear Client,

• Can I give GPA for my land on which there is court stay order not to sell?

When there is court order specifically restraining the sale of the property, it must be complied in all its dimensions, until further orders. Whether or not the property is self-acquired, such an order calls for strict prohibition on alienation of the property during applicability of the court order. In the present context, the execution of a GPA could be reflected as a step towards alienation of the property. This would invite penal action by the court as it would be seen as going against the court order. Hence, the execution of a GPA for the purpose of possession of the property, development etc. is discouraged. The GPA may be allowed only if it is specifically for the purpose of legal representation or anything else except alienation of the property is some manner.

Legal principle: refer to the Judgment of T. Arivandandam v. T.V. Satyapal & Anr., AIR 1977 SC 2421,

I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.