Power of attorney

Ajita Menon (Querist) 11 October 2011 This query is : Resolved
Whether personal guarantee agreement can be executed by POA holder. Plz. cite relevant judgments in this regard.

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ajay sethi (Expert) 11 October 2011
In the case of Indian Bank Vs. City Hospitals & others, IV (2007) BC 61, it was held that PA executed by the managing director of an organisation, to give any guarantee or provide any security without special resolution of the company was not valid. So the mortgage created by the defendants as PA holders was not valid and binding.

ajay sethi (Expert) 11 October 2011
perosnal guarantee can be executed by POA but the power of attorney must be specific authorising him to do such act execute guarantee

prabhakar singh (Expert) 11 October 2011
I AGREE WITH SECOND OPINION EXPRESSED BY Mr.SETHI.AN AGENT CAN DO ALL THOSE ACTS THAT CAN A PRINCIPAL LEGALLY DO PROVIDED PRINCIPAL HAS SPECIFICALLY AUTHORIZED THE AGENT FOR THAT IS THE SIMPLE RULE IN THIS REGARD.

Sailesh Kumar Shah (Expert) 11 October 2011
Question:Whether personal guarantee agreement can be executed by POA holder?

Answer: If POA specifically authorise to do so then agreement can be executed.

Advocate Bhartesh goyal (Expert) 11 October 2011
Yes if power of attorney holder has been specifically authorised by principal then POA holder can execute such agreement.

Guest (Expert) 20 November 2011
Risky affair!

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