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General Power of Attorney

(Querist) 24 November 2010 This query is : Resolved 
A executed a registered GPA in favour of B. in that GPA power to manage the property and sale were specifically given.

B entered into agreement to sale with C for the sale of property in his own capacity citing himself to be the owner of property. C knew the fact that B was GPA holder.

thereafter B denied to execute sale deed.

C filed a civil suit for specific performance against B. The trial Court decreed the suit holding that C has proved the agreement to sell and receipt of money by B.

Lower appellate court reversed its findings that B was GPA holder and A ( original owner ) was to be impleaded.
and allowed the appeal and dismissed the suit.

In RSA HIghcourt, there is a substantial question of law that whether A the original owner was to be impleaded as necessary party ?

i am representing C . Please give views and judgment in my favour.
M V Gupta (Expert) 28 November 2010
From the facts narrated it is clear that the property belonged to A and that B the agent executed the agreement for sale describing himself as the real owner and not in his capacity as the POA of A. As such the agreement is not binding on A and no decree for specific performance could have been passed. Your client does not appear to have any right to proceed against A who is the real owner. The efforts made by yur client to proceed against the property without adding A as party defendant was not in order. In fact the agreement signed by the Agent B in his own capacity and not as the agent of A would not be binding on A. A can refuse to be bound by the agreement. The order passed by the appelalte court is proper.


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