Sale of property to own sons

Querist : Anonymous (Querist) 16 August 2011 This query is : Resolved
I and 3 other partners had given a POA to a fifth relative and partner to manage a property owned by the firm. Now he has sold the same to another firm where his three sons are partners. Will this be a criminal fraud case. Also what are my options and chances of winning.

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ADVOCATE SRIDHARABABU (Expert) 16 August 2011
When GPA is given only to manage the property and the clause of GPA does not disclose sale authority or even if it disclose sale authority, then your attorney shall act within the powers given under that GPA and account for it. Any thing made exceeding GPA not only gives raise to civil action but also criminal action may be instituted. In civil action damages/not binding reliefs can be claimed. In filing criminal case you have to show criminal intention at the time of executing sale deed is necessary.

Querist : Anonymous (Querist) 16 August 2011
He has sold the property to his own sons. Is that not criminal intention and fraud.

Querist : Anonymous (Querist) 16 August 2011
Also when the stamp duty rate was more than 600rs. the property has been sold only for Rs. 40/-

prabhakar singh (Expert) 16 August 2011
1.IF POA IS UNREGISTERED ,THE SALE IS VOID.
2.IF POA IS REGISTERED BUT NO POWER TO SALE CONFERRED STILL SALE IS VOID.
3.IF POA IS REGISTERED AND POWER TO SALE GIVEN THEN SALE IS VOIDABLE BY A SUIT.
4.INADEQUACY OF CONSIDERATIONS MAY BE A LEADING CIRCUMSTANCE TO PROVE FRAUD OF POA BUT IT CAN NOT BE SOLE AND ONLY GROUND TO DECLARE THE SALE VOID.
5.WHEN POWERED WITH RIGHT A POA CAN BUY EVEN IN HIS OWN NAME SO ALSO HE CAN SALE TO HIS SONS AND IT CAN NOT BECOME A SOLE GROUND TO SET ASIDE A SALE.

ADVOCATE SRIDHARABABU (Expert) 16 August 2011
If you produce such evidence of value of property then it is criminal intention to sell and defraud you. It attracts section 409 of IPC criminal breach of trust.

ADVOCATE SRIDHARABABU (Expert) 16 August 2011
Yes P.Singh ji is right under section 32 and 33 of registration act 1908 POA to sell a property should have been executed before Registrar, no notarised POA is valid. Then also such criminal action can be initiated against Registrar also.

Querist : Anonymous (Querist) 16 August 2011
The POA has been without any transfer of money, I mean without any considerations. Also in the sale deed they have not mentioned anything about the POA. Instead it is written " duly authorised to execute this deed vide resolution no. " So can I now claim the sale void as the sale is not executed on the basis of POA but on resolution in which I have not signed.

Querist : Anonymous (Querist) 16 August 2011
I think what he has done is, he has signed on the resolution to sell on behalf of the other partners using the powers vested by the POA and then executed the sale deed by mentioning the resolution passes. So what should I do?

girish shringi (Expert) 17 August 2011
Do you have the copy of such POA red it carefully and find the fact was it to manage or execute any transaction for the property.
Then put the querry again.

Dr Anil Kumar Singh (Expert) 18 August 2011
From your version it seems that the POA was given to your fifth partner from management of the firms property. If POA does not contain any clause to sale or dispose off the property of the firm , the sale is void ab intio. Read POA and consult a counsel to present true facts before the Court

Sale of property to own sons

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