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Leading case law on power of attorney

Leading case law on power of attorney

 
Learned counsel pointed out that in these
circumstances any act done by Dhanapal in relation to
suit premises including creation of tenancy was an act

done for and on behalf of A. Radhakrishnan. It was,
therefore, urged that the tenancy was, as a fact,
between A. Radhakrishnan being owner/landlord of
suit premises and respondent No.1 as his tenant
which later devolved on the appellants after the death
of A. Radhakrishanan by operation of law thereby
conferring a right on the appellants as co-owners of
suit premises to file the eviction petition against
respondent No.1 for his eviction from the suit
premises.
In our opinion, Dhanapal was a power of attorney
holder of A. Radhakrishnan. He executed the tenancy
agreement on behalf of the original owner – A.
Radhakrishnan in favour of respondent No.1. Such
act done by Dhanapal did not create any right, title
and interest in his favour and nor he ever asserted any

such right in himself and indeed rightly qua A.
Radhakrishnan or the appellants in relation to suit
premises. That apart, respondent No.1 in clear terms
admitted in his evidence and in the pleading of cases
filed by him against the appellants about his status as
being the tenant. In the light of this legal position, the
High Court should have held this issue in appellants’
favour.
 The law relating to power of attorney is governed
by the provisions of the Power of Attorney Act, 1982.
It is well settled therein that an agent acting under a
power of attorney always acts, as a general rule, in the
name of his principal. Any document executed or thing
done by an agent on the strength of power of attorney
is as effective as if executed or done in the name of
principal, i.e., by the principal himself. An agent,
therefore, always acts on behalf of the principal and
exercises only those powers, which are given to him in

the power of attorney by the principal. Any act or thing
done by the agent on the strength of power of attorney
is, therefore, never construed or/and treated to have
been done by the agent in his personal capacity so as
to create any right in his favour but is always
construed as having done by the principal himself. An
agent, therefore, never gets any personal benefit of any
nature. Applying the aforesaid principle, this Court in
Suraj Lamp and Industries Private Limited (2) vs.
State of Haryana & Anr., (2012) 1 SCC 656 held in
paragraphs 20 and 21 as under:
“20. A power of attorney is not an instrument
of transfer in regard to any right, title or
interest in an immovable property. The power
of attorney is creation of an agency whereby
the grantor authorises the grantee to do the
acts specified therein, on behalf of grantor,
which when executed will be binding on the
grantor as if done by him (see Section 1-A
and Section 2 of the Powers of Attorney Act,
1882). It is revocable or terminable at any
time unless it is made irrevocable in a
manner known to law. Even an irrevocable
attorney does not have the effect of
transferring title to the grantee.
21. In State of Rajasthan v. Basant Nahata,
(2005) 12 SCC 77, this Court held: (SCC pp.
90 & 101, paras 13 & 52)
“13. A grant of power of attorney is
essentially governed by Chapter X of
the Contract Act. By reason of a deed of
power of attorney, an agent is formally
appointed to act for the principal in
one transaction or a series of
transactions or to manage the affairs of
the principal generally conferring
necessary authority upon another
person. A deed of power of attorney is
executed by the principal in favour of
the agent. The agent derives a right to
use his name and all acts, deeds and
things done by him and subject to the
limitations contained in the said deed,
the same shall be read as if done by the
donor. A power of attorney is, as is well
known, a document of convenience.

52. Execution of a power of attorney in
terms of the provisions of the Contract
Act as also the Powers of Attorney Act
is valid. A power of attorney, we have
noticed hereinbefore, is executed by
the donor so as to enable the donee to
act on his behalf. Except in cases where
power of attorney is coupled with
interest, it is revocable. The donee in
exercise of his power under such power
of attorney only acts in place of the
donor subject of course to the powers
granted to him by reason thereof. He
cannot use the power of attorney for
his own benefit. He acts in a fiduciary
capacity. Any act of infidelity or breach
of trust is a matter between the donor
and the donee.”

An attorney-holder may however execute a
deed of conveyance in exercise of the power
granted under the power of attorney and
convey title on behalf of the grantor.”
This was followed by this Court in Church of Christ
Charitable Trust and Educational Charitable
Society vs. Ponniamman Educational Trust, (2012)
8 SCC 706 (para 20)
 When we apply this well settled principle of law to
the facts of the case in hand, we are of the considered
view that when Dhanapal, who was acting as an agent
of A. Radhakrishnan on the strength of power of
attorney, executed the tenancy agreement with
respondent No. 1 in relation to the suit premises then
he did such execution for and behalf of his principal -
A Radhakrishnan, which resulted in creating a
relationship of landlord and tenant between A.
Radhakrishnan and respondent No. 1 in relation to the
suit premises. In this execution, Dhanapal being an
agent did not get any right, title and interest of any

nature either in the suit premises or in tenancy in
himself. The effect of execution of tenancy agreement
by an agent was as if A. Radhakrishnan himself had
executed with respondent No.1.
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No.5158 OF 2009
Tmt. Kasthuri Radhakrishnan & Ors. ……Appellant(s)
VERSUS
M. Chinniyan & Anr. ……Respondent(s)
Dated;January 28, 2016.
Abhay Manohar Sapre, J.

https://www.lawweb.in/2016/01/leading-case-law-on-power-of-attorney.html



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 1 Replies

A. A. JOSE (LAWYER; LEGAL ADVISER/CONSULTANT& TRAINER)     31 January 2016

Thanks for posting this useful judgement.


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