Gpa/poa

Querist : Anonymous (Querist) 04 May 2020 This query is : Resolved
Irrevocable GPA executed for consideration - section 202 of Indian Contract Act
My Queries
1. If the POA/GPA has been executed with consideration, then on the basic principles of the elements of a contract namely offer, acceptance and consideration, the POA essentially becomes a contract and legally enforceable. That’s why the POA is also mentioned in sec 202 of the Contract Act. Is this view correct?
2. Some interest/right in an immovable property has been conveyed to any party through this GPA/POA, then that party must seek enforcement of that legal right (may be through execution of a sale deed, partition, sub-division, declaration of title or even filing a suit against the grantor of the GPA who may have sold that property to someone else or might created some other interest in the said property or the legal heirs of the grantor may create some problems for the grantee of the GPA) under the Specific Relief Act to make his title in the said property secure. The time limit for these kinds of actions is 12 years as per the Limitation Act. Of course the limitation period starts running from the date when an adversarial effect comes into picture.
3. Suppose that party does nothing to enforce his right on the said property through the GPA/POA for 12 years, then his right is unenforceable.
4. Under sec 27 of the Limitation Act, that right also gets extinguished.
5. So, generally the validity of a GPA/POA is only 12 years in case of any transfer of any right in any immovable property coupled with consideration. Is my conclusion right?
6. Therefore, in the case of above mentioned GPA/POA, the validity period should at the best be reckoned as 12 years only?

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Quick Summary

This discussion delves into the legal standing of a General Power of Attorney (GPA) or Special Power of Attorney (POA) in India, particularly when executed with consideration. It examines whether such an agreement, based on offer, acceptance, and consideration, essentially becomes a legally enforceable contract under Section 202 of the Indian Contract Act. The conversation also addresses the enforceability of rights conveyed through a GPA/POA concerning immovable property, the 12-year limitation period for seeking enforcement under the Specific Relief Act, and the potential extinguishment of rights under Section 27 of the Limitation Act if no action is taken within this timeframe. It clarifies that while a 12-year period is generally considered for enforcing rights, challenging an act violating the GPA/POA terms might have a shorter 3-year limitation period, commencing from the date of knowledge.

P. Venu (Expert) 05 May 2020
What are the facts? What is the context?

Raj Kumar Makkad (Expert) 05 May 2020
The tenure to challange the act violating the terms of mentioned GPA by its granter is 3 years and not 12 years. The limitation shall though start from the date of knowledge of such act.

It shall be better to come up with the real facts of your query otherwise this is an academic query which should be posted in the Forum section of this site.

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