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Kamil (CTO)     05 July 2015

Validity of receipt against land deal based on poa

Dear Lawyers,

The case is like this. 

Mr. X approached Ms. Z to buy a property with a total extent of 100 cents. But paid for only 50 cents and took an unregistered receipt in stamp paper for the 50 cents in the year 1998. Ms. Z was worried that Mr. X may not pay and buy the rest of the area and that she would be left out with the low value area on the back side, registered a POA in his name for only 40 cents holding back on the 10 cents. Mr. X gave an written undertaking that he will register the rest by paying appropriate money within x days but that period had passed and Mr. X could not pay for the reamaining land. Later Mr. X brought his friend Mr. Y and he took a POA for 40 cents and paid for only 30 cents adjusting for the leftover 10 cents in the year 2000. Ms. Z in good faith that the ordeal is finally over did not record this adjustment in payment for 10 cents on paper and was of the belief that she has 20 cents in her possession. 

In 2012 and 2013, Ms. Z has written a settlement for the remaining 20 cents in favour of her two daughters and they have obtained patta for this land also based on that.

Almost 14 years have passed and Suddenly, In 2014 there is a claim from Mr. X to Ms. Z that she still owes 10 cents to him based on the receipt that she has given to him in 1998 and the registered POA for only 40 cents. He is threatening to file a case if she does not submit him with the 10 cents.

Is there a time period within which such claims should be made? 

Are receipts against giving of POAs valid and admissible?

How does she tackle this issue?

Ms. Z is shocked and does not know how to counter this. Respected lawyers please post your suggestions and views on how this should be handled.

Thanks in advance.

Kamil



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