(Expert) 24 April 2008
Revocability or irrevocability of POA depends upon the following FACTS :-
# 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. # The following have been considered to be 'power coupled with interest' in the above discussed cases. # The right of an agent to remuneration though stipulated in the form of property to be produced by exercise of power is not an interest in the required sense. # If the power is irrevocable as per the test laid down the parties are nevertheless free to make it revocable by an express stipulation to the contrary. # If the power is revocable than the parties cannot make it irrevocable merely by writing that the instrument is irrevocable. # The position in our country is the same as that in England. # A power of attorney is automatically terminated if- One of the parties to the instrument dies or becomes insane, The principal becomes insolvent or bankrupt, any specific condition in the instrument is breached, the business comes to an end. " Courts refer to Indian Contract Act provisions to determine this question
(Querist) 30 April 2008
thanks for the reply but still a bit confused as e.g.if the attorney pays Rs. 2Lakhs to the executer for executing an attorney for a property worth Rs. 4Lakhs wud it be considered as an attorney which is coupled with an interest.