What is the legal status of this property ownership?
frombbsr
(Querist) 12 April 2012
This query is : Resolved
Chronology of events in brief:-
2005 - Power of Attorney signed between 4 landowners and builder for construction of apartment
2006 - Customers enter into agreement with builder on the basis of approvals and PoA for purchase of individual units
2007 - 2 land owners (husband and wife) who had executed the PoA cancel the said PoA
2008 - Builder still goes ahead and executes sale deed in favor of customers for sell of individual units
2008 onwards - various court cases between builder and land owner who had cancelled the PoA wrt to agreement on original terms and conditions
2012 - home owners continuing to reside in the apartments bought by them by virtue of the sale deeds mentioned above.
Questions:
What is the legal status of the ownership of these apartments?
What is the procedure/process to get the status legalized incase it is illegal now?
ajay sethi
(Expert) 12 April 2012
since sale deeds have been signed by builder after revocation of power of attorney builder had no right to sell these flats .
the purchasers have defective title to property .
make an application for being added as party in ongoing litigation between the builder and landowners .
it will ultimtely depnd upon final decision taken by the court in the matter
frombbsr
(Querist) 12 April 2012
Dear Mr. Sethi, Thanks for your reply.
The question that begs critical attention is - can Power of Attorney be cancelled by land owner once building construction is near completion?
Devajyoti Barman
(Expert) 12 April 2012
The flat purchased by the buyers does not become illegal merely because the POA has be revoked by some of the principals.
It is well settled in law that the agency can not be revoked by the principal if the agent has got interest in the agency or some kind of consideration is involved in creation of the agency.
So do not worry, the flat owners are unlikely to loose the property but since the matter is in court unless it is disposed of finally the flat owners may not do much except for applying for electricity, telephone connection or even mutation.
Since actual dispute between the developer and the land owners is not own , nothing could be commented on the merit of the case pending between them.
ajay sethi
(Expert) 12 April 2012
is it an irrevocable power of attorney? the issue as to whether revocation of power of attorney is valid or not has to be determiined by court .
If the power given to the attorney is coupled with an interest it is irrevocable
# To decide whether a given power is coupled with interest or not regards are to be given to the facts of each case and the wordings of the instrument itself.
once it was cancelled builder had no buisness in selling flats . the flat buyers are unfortunate victims in tussle between landowners and builder
frombbsr
(Querist) 12 April 2012
Thanks Mr. Barman for your opinion.
M/s. Y-not legal services
(Expert) 12 April 2012
"Power of Attorney signed between 4 landowners and builder for construction of apartment"... while being so its can not be revoked..
you can invoke the estoppel grounds.. which is cover under sections 115 to 117 of indian evidence act..
-tom-
frombbsr
(Querist) 12 April 2012
Thanks Dear Tom Advocate for your opinion. In this case estoppel should be initiated by owners of the apartment or should be used if land owner tries to prove that all apartment owners are illegal occupants?
M/s. Y-not legal services
(Expert) 12 April 2012
no.. who is the aggrieved they may invoke the estoppel ground..
in this case the builder can..
-tom-
