A PoA functions on the principle of an “agency” where the PoA holder, that is, the person to whom the power is given, is authorized to perform certain acts on behalf of the PoA grantor. PoAs can be classified into general PoAs (where the powers conferred on the PoA holder are wide, and specific PoAs (where the powers conferred have been limited to a specific act in relation to a transaction).
A PoA that only authorizes the PoA holder to perform certain actions in the name of the PoA grantor can be revoked at any point in time by the PoA grantor, irrespective of the PoA stating that it is irrevocable.
As per law a PoA executed in favour of a PoA holder where the PoA holder holds/acquires an interest in the property which is the subject matter of the PoA itself cannot be revoked or terminated, if the same is prejudicial to the PoA holder’s interest.
This principle would apply irrespective of whether the PoA states that it is irrevocable.in a case where PoAs are executed for a stipulated time period, and such PoA is revoked before the specified time, then the PoA holder may pursue action against the PoA grantor for unilateral termination, without sufficient cause
. It is important to note that for being a legally valid document, each PoA is required to be compulsorily executed on appropriate value stamp paper and should also be notarized/authenticated.
However, if the intention of the parties is to transfer/convey property under the guise of a PoA, then the document is not only required to be stamped at a higher rate, as a conveyance deed, but also requires registration.
In all the probabilities, a POA deed can be drawn/executed for a limited period which comes under specific POA.