Regarding POA- Urgent
Querist :
Anonymous
(Querist) 12 May 2010
This query is : Resolved
Respected All,
I have a query that in a property three people gave their power of attorney to me and all of them were alive when they gave their powers to me.
One of the person who gave the power to me dies.
While making a sale by mistake the a point was mentioned in the sale deed that ' All of the power of attorneys are in presence and are effective' i.e. the power of the person who died is also present.
Now the party to whom the sale was made has filed a case against me under 420 that I have cheated them by saying all the power of attorneys are in presence whereas one of the person who passed the power to me has died and that they are facing problems in getting a loan against the said property.
What can be done in such scenario. Kindly help...
Uma parameswaran
(Expert) 12 May 2010
Try to get the permission from the legal heirs of the person who died.If they have no objection cancell the present sale deed and register new one with the presence of the legal heirs or collect power of Attorney from them.
Querist :
Anonymous
(Querist) 12 May 2010
I am one of the legal heirs of the person who died as well as the other person is also a leagal heir and he has given the power of attorney to me.
Do I need to ask again for his power of attorney?
Isn't there any law stating that if one of the person dies in the power of attorney and the other people are alive, the power of attorney of the person who dies expires automatically whereas the power of attorney of the persons alive still hold.
niranjan
(Expert) 12 May 2010
Though you signed as power holder of the dead person,but you are legal heir of that dead person and you also have power of other heirs,only rectification deed is tobe made in your authority as seller.There is no case of cheating.
Ashok Yadav
(Expert) 12 May 2010
The power of attoney termintes on death of the executent of the POA.
Yes the POA of the person only who has expires, shall be treated as terminated, and who are alive their POA shall still in force.
If you are the legal heir then you can sell your share in the property in capacity of exclusive owner and POA holder of the second heir and other two persons. You can not act as POA holder of a person who has expired.
Surely the purchaser can lodge FIR against you. Now to settle the matter amicably you should talk to the purchaser and with his consent you should cancel the previous sale deed and should execute a new sale deed in his favour
Querist :
Anonymous
(Querist) 12 May 2010
Hello,
Thank you so much all for your help, I really appreciate it.
I was just reading my developers agreement in which it is mentioned that all the Power of Attorneys are irrevokable. According to me it means that there will be no affect on the poa after the death of any person.
Also I came across the Indian Contract act, it mentions that:
42.
Devolution of joint liabilities.
42.Devolution of joint liabilities.-When two or more persons have
made a joint promise, then, unless a contrary intention appears by the
contract, all such persons, during their joint lives, and, after the
death of any of them, his representative jointly with the survivor or
survivors, and, after the death of the last survivor, the
representatives of all jointly, must fulfil the promise.
Does these two facts can be of any help to me?
I have already conveyed to the opposite party, that we are ready to re-register the agreement and also that, if not, we are ready to buy back the property.
niranjan
(Expert) 12 May 2010
Yes,if the poa is irrevocable,then death does not make any difference.
Shashikant V. Patil
(Expert) 13 May 2010
I too agree with Mr. Ashok Yadav' s legal opinion. And he is correct in this regard.
Even Niranjan about his opinion about irrevocable POA is not so correct because if person executed POA to any POA holder all his rights during his lifetime is in force. But after his death, his contract terminates and in this circumstances, question does not arise to work on his (dead person's) behalf which is totally against a natural justice and existing laws.
Querist :
Anonymous
(Querist) 13 May 2010
Hello,
I appreciate the help of all of the people who took out some of there precious time in solving my query.
I would like kind attention of all of the people on an article which I found on the same forum:
http://www.lawyersclubindia.com/articles/Power-of-Attorney-Facts/29/
I would also like to quote some of the lines from the above mentioned article's link.
"revocation is prohibited under S. 202 of the Contract Act (quoted herein-below). S. 201 of the Contract Act also states that an agency terminates, inter alia, by death of principal or agent. (c) Now, the questions that arise are whether a power of attorney can be irrevocable in nature, and, whether an irrevocable power of attorney granted would terminate on death of a donor ? In such an event, would the security holder under a power of attorney, cease to hold such security in the event the donor dies ? III. When does a power of attorney become irrevocable ? (a) Legal provisions : (1) The POA Act does not state when a power of attorney is irrevocable. However, in various commercial transactions, a donor gives an irrevocable power of attorney, on contractual basis, to secure the interest of the donee of the power. (2) Under S. 4 of the (English) Powers of Attorney Act, 1971 a power of attorney is irrevocable if it is expressed to be so and is given to secure : (i) a proprietary interest of the donee of the power; or (ii) the performance of an obligation owed to the donee. Then, so long as the donee has the interest or the obligation remaining undischarged, the power cannot be revoked by the donor without the consent of the donee, or by death, incapacity, insolvency, winding up or dissolution of the donor. "
