Cancellation of the Registered Development agreement cum Irrevocable Power of Attorney
(Querist) 09 May 2008
This query is : Resolved
My friend entered in to a Registered development agreement cum Irrevocable GPA,in the year 2003 but due to the reasons beyond the controll of both the parties the construction could not be made, now by mutual understanding both decided (i.e owners and builders)to register the cancellation deed cancelling the Registerd DA cum IG.P.A, and at the time of registration of Principal deed as a Security deposit the developers paid a sum of Rs 2,00,000/- in white, and Rs 10,00,000/- in black and prepared a separate receipt thereof, Now the owners are repaying entire security deposit to the builders in terms of cancellation of Registered development agreement cum I.G.P.A,now my question is what will be the stamp duty and fees of Registration of cancellation deed if the entire repayment sum is mentioned or referred in the cancellation deed, and if not referred what will be the stamp duty and registration fee in A.P. And further is it necessary to mention the repayment amount in cancellation deed? whether it is sufficiant if the owners repays entire security deposit amount vide separate receipt by not disclosing the amount paid to the builders in cancellation deed, please clarify me it is urgent, expecting answer today.
J K Agrawal
(Expert) 20 May 2008
Dear Mr Rao
There is nothing like Irrevocable Power of Attorney recognized by any law. The power of attorney is always revocable and if there is any condition that the rights given to person shall not be revoked is amounting to transfer of an interest in property. Such condition changes the nature of deed and it remains no longer a power of attorney. ( It becomes sale deed, gift deed or any thing else ) So power of attorney is always revocable. No question arises to mention any sum. This mentioning sum to other terms by way of compensation or reimbursement is a simple and separate agreement which requires no any registration and a saparate agreement can be done. I think cancellation of a power of attorney requires stamp duty of rupees 100 or so (stamp duty i cant say as it is state matter)
(Expert) 03 April 2009
Mr. Agrawal ... If the power is given for some consideration ... it cannot be revoked unilaterally / till such consideration is returned back ...