sid jai (ceo) 13 July 2014

Power of attorney

This is regarding GIFT DEED- My father wants to gift his flat to me. Since he is old and stays in native place he can not come to the city therefore he wishes to give a POWER OF ATTORNEY on my name to enable me to gift the said flat to myself. On one hand I am his Constituted Attorney on the other hand I am the beneficiary .

There are two school of thoughts-

1) I can always be the C.A of my father and Gift the property to myself. Since I am representing my father and authorized by him to gift the property to a beneficiary who happens to be myself. And there should not be any issue as I am representing two different entities.

2) I cannot be the C.A.to my father and also be the beneficiary.

Next query:

For second property -

Can he give me the POA on my name and authorize me to gift this property to any person of my choice. Should he mention to whom it should be gifted right now in the POA?

He has said that I should Gift it to any person of my choice. I wish to gift it to one of my three nieces or to a charitable institution of my choice. Is it necessary to mention the beneficiary's name in the POA? If the choice has been left to me then why should any beneficiary's name should be mentioned in the POA>

Please clarify with explanation.

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2 Replies

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING) 13 July 2014

1] In POA you are trusty and not beneficiary. As per Supreme Court citation, immoveble property chiannot be gifted by POA that too for himself. Best way is to execute Gift Deed in your favour from your father.

T. Kalaiselvan, Advocate (Advocate) 14 July 2014

I think I may have to respectfully disagree with my learned friend Adv. Mr. Jeevan Patil's opinion to the effect of POA cannot gift the property to himself. There is no such ruling in this particular aspect, atleast to my belief and I request my friend to quote the citation details governing this law. The POA deed empowers the power agent to act on behalf of the principal on a specific or general acts which stands ratified. Thus as per the power deed, the power agent is empowered to transact with the property to any one and there is no restrictions that he cannot transact with the property to his own self especially if there is a specific mention about it in the recital of the deed.

However my suggestion is that since father has to visit the registrar office to sign the registration of power deed in the presence of Registrar, it is better he make the gift deed itself straightaway, which will be more beneficial to you by cutting the expenses for preparing the POA Deed, its registration charges, time and energy, because at the same cost you can get the gift deed executed in your favor and the problem is solved.