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Maloji rao ghodkar (civil side )     12 January 2024

Assignment cum general power of attorney

A pensioner of State Government who is alone and whose wife is also employee of Electricity Board died  and who is sick has taken loan from another and is not able to repay it.  Further, the creditor has rendered services to the debtor for long period and attending to his medical needs. The debtor pensioner in consideration of the services rendered by the creditor proposes to execute an Assignment Deed cum GPA in favour of the creditor assigning in his favour the amounts of terminal benefits of his deceased employee wife in consideration of his services rendered by him / creditor to him / the pensioners and also to recover / adjust out of the same, the outstanding debt together with interest. The sick pensioners proposes to execute Assignment Deed cum GPA to enable the creditor to pursue with the Electricity Board for realization of the amount of terminal benefits of the late wife including power to sue the Electricity Board.  The idea is that even if the creditor / pensioner dies, the creditor will continue to have power and authorisation to recover the terminal benefits of the wife of the creditor from the Electricity Board and to realise his outstanding dues from the pensioners either during his life time or after the death of the pensioner / debtor.  I think the proposed Deed of Assignment cum GPA is legal and enforceable.  Any suggestions on this please.

Thanks,

M R Ghodkar, Advocate 



Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     13 January 2024

The deed of assignment for collecting the terminal benefits of the deceased retired employee is not valid and not enforceable. 

Secondly upon the death of principal. the power of attorney deed is not valid. 

 

LCI Thought Leader Sanjeev Duggal Advocate   19 January 2024

Generally, assignments of future rights, such as terminal benefits, can be legally complex. It's important to ensure that the agreement complies with the Transfer of Property Act, which regulates such assignments. Additionally, the Power of Attorney Act may be relevant to grant authority for pursuing claims against the Electricity Board.

It's advisable to include clear and specific terms in the deed to avoid ambiguity. Drafting the document carefully can further enhance its enforceability.


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