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Validity of saledeed executed on notarised power of attorney (Property Law)

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Author : Geetha

Posted On 14 October 2012 at 19:12

I shall be thankful, for the guidance on the following:
Sequence of case:

1. The land owner has given GPA to Mr. A , and it is s notarised one prior to 1993.

2. Based on the said notarised GPA, Mr. A as a GPA Holder ( Not registered) sold the site to Mr. B in 1993.
3. The sale deed got registered at sub registrar office, Bangalore based on the
notarised power of attorney.presented by Mr. "A" being GPA holder on behalf of Seller and land owner.
4. The sale deed signed by GPA holder on behalf of the land owner,
and by Mr. B as purchaser.

4. The purchaser ( Mr.B ) has got khatha on his name from BBMP , Bangalore, paid betterment fees, taxes etc., till date

5. Now Mr. B wants to sell the site.

Guidance sought on:

1. Whether the sale deed registered based on notarised GPA on behalf of the seller in 1993 is valid under registration act of Karnataka.

2. Is it mandatory for registration of Power of attorney by the seller as the amount of immovable property was more than Rs.100/-

3. Can the site be purchased as Mr. B says that the registration took place prior to Oct 2011 - i.e., prior to SC order on GPA ?

4. Can it be said that Mr. B is the owner of the site now, as he is having a Khatha from the BBMP Bangalore, and paying all the taxes since 1993?
or
cant be construed that the sale deed executed based on notarised POA in 1993 is invalid and Mr. B has no rights on the property?



Thanking in anticipation.
Geetha





Expert : A V Vishal

Posted On 14 October 2012 at 23:48

You can go ahead with the deal if the vendor has the original GPA and delivers you with the same as link document. Take certain precautions like advertising by way of public notice and getting all the documents scrutinized by a good advocate.



Expert : M V Gupta

Posted On 15 October 2012 at 22:37

The Supreme Court's decision in Suraj lamps case does not apply to the facts of ur case, as the sale deed in favor of B has been duly stamped and registered by the GPA holder of the predecessor in title and B's name has been duly mutated in the municipal and othe records of right. As the GPA is not one with interest in the land in favor of the Attorney it does not require registration.



Author : Geetha

Posted On 18 October 2012 at 18:31

Dear Vishal sir & Dear Gupthaji,

Thanks for the guidance and opiniont.

Vishal Sir,
I have seen the comments offered by you three years ago regarding applicability of registration of POA relating to sale of immovable property. In the case mentioned by me, the case refers to sale of immovable property in 1993. The purchaser "B" purchased the plot. The sale deed got registered at SR office Bangalore in 1993 . The GPA holder signed the sale deed on behalf of the seller, and Mr B being purchaser signed as purchaser. My doubt, since the GPA holder Mr. "A", was not a near relative the seller and the GPA was notarised one. Since you have told that GPA in respect of selling is to be registered, I had raised this issue.
Your comments, given three years back are:
extract of your opinion
========================
"The following are the list of documents that do not require registration:
Power of attorney that is given except power to sell property
Development agreement
Agreement of sale given by a land owner to a developer
Lease agreement
Lease deed for less than one year
Memorandum of oral partition
recording a past transaction.
Power of Attorney:
Registration: In many cases, a general or specific power of attorney need not
be registered. The question of registration arises only if a power is given for the
sale of immovable properties. The Indian Registration Act does not make a
power
of attorney compulsorily registerable. However, the Supreme court has
recently ruled that a power of attorney given to sell immovable properties
should be registered. It should be done at the office of the sub registrar within
whose jurisdiction the person giving the power resides. If the person resides
abroad, the power should be attested by the Indian consulate in that country.
Such power of attorney should be used within 3 months from the date of its
execution.

Since the advocates at Karnataka are of the opinion that notarised GPA is enough.
If it is true, then from what date the registered GPA is mandatory.

Thanking you in anticipation
Geetha
Addl. Professor,
Manipal University.


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