Two power of attorneys for same property
Rajeev Khanna
(Querist) 06 December 2011
This query is : Resolved
A person execute two powers of attorney for executing sale deed for the same property in one in favour of Husband & other in favour of Wife and on the basis of POA executed in favour of wife, wife execute sale deed in favour of husband, can two power of attorneys be executed for same property and for same purpose in favour of two different persons and is it legally possible that a power of attorney holder execute sale deed in favour of other POA holder for the same property
Shailesh Kr. Shah
(Expert) 06 December 2011
In whole case, there is no irregularity. Transaction by wife is valid.
Devajyoti Barman
(Expert) 06 December 2011
The sale would be voidable as the sale among the constiututed attorneys would be a conflict of inerest unless the princiapl ratifies such transfer in writing or in conduct.
Raj Kumar Makkad
(Expert) 07 December 2011
I do not agree with Barman. Only one POA has been used for executing sale-deed so there shall not be any effect of another POA.
Advocate. Arunagiri
(Expert) 07 December 2011
It seems it is purely academic query.
POA which ever is given first stands good.
So, if the Wife has obtained the POA first, her transaction is valid.
prabhakar singh
(Expert) 07 December 2011
Should i under stand it that A has executed two POA[s]one in favor of B,the other in favor of C.C is wife of B.
Okay if it is so then your question ought to have been whether sale made by wife C in favor of her husband B is valid or not.????
But instead, now you ask that whether same person can appoint two POA[s]or not.
Hence Mr. Arunagiri rightly anticipated your query hypothetical in its nature.
To answer you, my statement is that whichever POA shall act first his sale shall be binding upon the owner /donor.
Advocate. Arunagiri
(Expert) 07 December 2011
Mr.Singh,
As this is a hypothetical query, I have pleasure in joining the queriest.
A - Principal
B - first POA
C - Second POA (given in the existence of B)
Do you mean to say the if C is acting first, his shall be binding the principal?
What is the legal status of the POA of C, while B is already holding the POA?
Whether the POA given to C is a deemed termination of POA of B?
Whether the POA given to C itself is void?
prabhakar singh
(Expert) 07 December 2011
@Mr.Arunagiri
I have looked it if two POA are registered by A owner in favor of husband first B and then in favor of wife C.B does not act but C acting upon the same sales to Z,then i viewed
that sale in favor of Z by C shall be binding upon A.I thought A can not take benefit of his own wrong.
J K Agrawal
(Expert) 08 December 2011
Respected Singh sahib and And arunagiri ji
Power of attorney can be given to so many persons at any time and at the same time. NO bar any where. All are valid.
The first action of any power or attorney holder is binding over Principal (A)and all the other power of attorney holders are in position of agent only so all they are bound by the rights and liabilities of principal.
In this example nothing worng if one POAH sales to another POAH.
Suppose today B sells property of A to mr X and after a few days C (having no knowledge of sale to X and bonafidely) sales the same to Mr Y. The sale in favour of X is valid and the Y can recover back his amount as A was having no interest in property at the time of sale to mr Y.
Raj Kumar Makkad
(Expert) 08 December 2011
I completely endorse the views of Aggarwal.
prabhakar singh
(Expert) 08 December 2011
That is right Mr. Agrawal!
That is what i meant.
I double checked the contract Act but could not find any bar.
Ashutosh Choubey
(Expert) 09 December 2011
Dear Mr Agarwal
I completely agree with you. Further to the discussion pl advise what is the validity of POA after the death of owner of the property and particularly in case of a company after the dissolution of the company.
Shailesh Kr. Shah
(Expert) 09 December 2011
I also 100% agree views with Shri J.K. Agrawal. Which also confirms my reply.
R.Ramachandran
(Expert) 09 December 2011
I am unable to digest the views given by Mr. J.K.Agrawal.
In the example given by Mr. Agrawal, what will happen if Mr.Y sues A for specific performance of the Agreement entered into by C on A's behalf?
R.Ramachandran
(Expert) 09 December 2011
The query posed by Rajeev Khanna, seems to be highly hypothetical. Even assuming the same to be a factual situation, then in the peculiar facts of the situation, the husband will not be able to execute any further sale of the same property on behalf of the original owner, since he is quite aware the property already stands sold.
prabhakar singh
(Expert) 09 December 2011
But the question is that part X of Indian Contract Act does not bar a principal from appointing two agents for one purpose or one property.
It is another mater that doing so he is exposing himself to a greater risk that may arise.
prabhakar singh
(Expert) 09 December 2011
A is owner.
B is first agent.
c is second.
I say that if C or B who acts first with third party, he binds legally A.Here third party is saved with his contract with A through B or C.
Then when one who acts second makes A liable to damages with fourth party whom he acts.
In case earlier is a property transaction of sale fourth party can know it by search.
In case earlier transaction is an unregistered agreement to sale in favor of
a third party,then fourth party buying it later if duly having notice would be at risk other wise sale shall prevail and person seeking specific performance would be granted only damages.
R.Ramachandran
(Expert) 09 December 2011
Dear Mr. Prabhakar,
I entirely agree with Your first post where you say that the owner is exposing himself to a greater risk.
However, I have my reservations about your views contained in your second post.
Visualise a situation where both the Agents only enter into Agreement to Sell, and the Conveyance Deed has not been executed, the question of 'constructive notice' to the second party will not at all arise, since even by searching he would not come to know about any Agreement to Sell having been entered into with another party through another Agent of the owner.
J K Agrawal
(Expert) 12 December 2011
Ashutosh Ji
As soon as the Principal dies the power of attorney automatically dies. The reason is that The power of attorney simply means that somebody else is doing the work which actually should have done by the principal. If Principal himself can not do any thing the POAH also can not do the same. Like in case of death. or take an another example if Principal goes un discharged insolvent the POAH can not enter in an agreement.
The same thing gives answer to the question of Mr Ramchandran.
If A Personally sells a property to X then he has nothing with him to sell to Y. If he sells again it to Y, Y can do any thing he want but his suit for specific performance will fail.
Rajeev Khanna
(Querist) 14 December 2011
Dear all,
First of all thanks for your valuable comments & suggestions but still the question is;- husband has got sale deed in his favour which all of us/ most of us agreed is legal and also a POA to sell that property which is also legal, so in such case is it not correct
that husband(Mr. Ramchandran had already disputed this)may act on basis of POA which is in his favour? and prospective buyer from the husband is at greater risk?
Advocate. Arunagiri
(Expert) 14 December 2011
Even for a academic query there must be logic.
Husband and Wife are having POA for the same property.
If the wife sells the property to husband, by executing her POA, what is the need for the husband to execute his POA. Because he is the title holder. He is no more the POA.
Even after this if the husband wants to execute his POA, the husband need not consult a lawyer, he has to consult a psychiatrist.
Rajeev Khanna
(Querist) 14 December 2011
Respected arungiri sir thanks for your comments ones again but you interpret the query in different sence basically query is :when a person has got two legal documents of title in his favour both valid and binding then prospective purchaser from this person is at greater risk or not?
Advocate. Arunagiri
(Expert) 14 December 2011
Mr.Rajeev, your initial query is of the POA is
"is it legally possible that a power of attorney holder execute sale deed in favour of other POA holder for the same property".
Now you are developing the query to "prospective purchaser".
My previous opinions covers this point also, you may go through it.
As this is only a academic query, I would like to confine myself with this point.
