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Hasan Dahodwala   08 October 2017

Validity of unregistered GPA

want to buy a property that was registered by an unregistered GPA holder (1990), in 2004 to the present owner


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 9 Replies

manoj   08 October 2017

as per the supreme court directions in Suraj Lamps, all the GPA documents are invalid. It is explained that some documents which is executed in real transcations is valid. so my advise dont purchase property if it is under GPA.

Siddharth Srivastava (Advocate)     08 October 2017

Sale through GPA is not valid. Also confirm that executor of GPA is sliced or not because if the executor has already expired then GPA ceased to exist. If executor has alive then GPA is valid if there is no doubt in regard to its execution etc.

manoj   08 October 2017

 

I am extracting the contents of the citation pronounced by the Supreme Court Judges in Suraj Lamps, what is meant by real transcations other than these transcations all the GPA's are invalid. 

19. We make it clear that our observations are not intended to in any way affect the validity of sale agreements and powers of attorney executed in genuine transactions. For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance. A person may enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings and in that behalf execute an agreement of sale and grant a Power of Attorney empowering the developer to execute agreements of sale or conveyances in regard to individual plots of land or undivided shares in the land relating to apartments in favour of prospective purchasers. In several States, the execution of such development agreements and powers of attorney are already regulated by law and subjected to specific stamp duty. Our observations regarding `SA/GPA/WILL transactions' are not intended to apply to such bonafide/genuine transactions.

20. We place on record our appreciation for the assistance rendered by Mr. Gopal Subramaniun, Senior Counsel, initially as Solicitor General and later as Amicus Curiae.

21. As the issue relating to validity of SA/GPA/WILL has been dealt with by this order, what remains is the consideration of the special leave petition on its merits. List the special leave petition for final disposal.

 

coming to your reply whether principal is alive or not is not the question here. whether GPA's are valid or not. As per your reply the Law speaks as per section 201 of the INDIAN CONTRACT ACT  the death of the Principal, General Power of Attorney is terminated. Even on the death of the Principal the agent will not loose his rights when interest is transfereed in GAP document to the agent. So the Law is very crucial depending upon the circumstances of the cases. To come out of the these type of issues Supreme Court had pronounced One authority rendered in Suraj Lamps only they speak about the Validity of the GPA's and other documents. Thats the reason the Supreme Court had cautioned by this authority to help the public by stating that which is a Valid document and which is not valid document regarding GPA's

 

Manoj

 

Hasan Dahodwala   08 October 2017

thnx .
my question is (in Bangalore)X gave unregistered POA to Y in 1991.
Y sold the property to Z vide a Registered sale deed in 2004.
Now Z is selling the property to M(myself).
the question is Y the owner (legally)? n does he enjoy the rights as a owner

manoj   08 October 2017

basing on unregistered GPA's it is not valid. The title cannot be transfered basing on the GPA doucment. The document executed by X in favor of Y which is unregistered and the Y executed registered sale deed basing on X document. This transcations is total ignorance of LAW. The title cannot be transfered basing on the unregistered GPA document. My kind advise please not to involve in the above transcation. If you are entereing in the above transcations, you may suffer with court proceedings. 

Bhaskaran Advocate (Lawyer)     25 February 2018

It is only off late that GPA is not valid but in 2004 it is valid.  So any sale under GPA in the year 2004 is valid.

You can purchase the property.  

The above judgement quoted here is clear in this matter.   All genuine transactions are valid. 

O

Charyulu KVN (Senior Manager - Admin)     05 October 2018

Hi, 

Both Manoj and Bhaskaran are sharing contradictory views.  Which is the one we have to consider.   Is it valid or not if transaction made prior to 2004.  Supreme court judgement says genuine transactions, but POA is not part of any such list.

manoj   05 October 2018

Title cannot be transferred, if the sale deed is obtained from un-registered General Power Of Attorney holder, even prior to 2004. V E Manoj Kumar Advocate Cell No 8686159292

Charyulu KVN (Senior Manager - Admin)     15 November 2018

After a long struggle I have retrieved case history of my property, which is enumerated below for your kind perusal and further advice to proceed accordingly.

I would request your views pls.

 

Principal (Absolute land owner) executed a sale agreement for 16.50 lacs in 1993 and subsequently executed a GPA to the same person to sell his land as residential plots.

At the time of execution, land owner got 5.00 lacs as advance from GPA holder. Since GPA holder failed to make balance payment of 11.50 lacs, land owner cancelled GPA through Notary on 06.05.1999. He has also published notification in local news papers about GPA cancellation. This GPA was unregistered but notarised.

 

But GPA holder sold the plots on 06.08.1999 to third parties. Having known this, land owner filed a civil suit and later both compromised to ratify few plots through Lok Adalath.

The plot which I bought as 3d transaction from land owner was not ratified in his compromised settlement.

 

Now my queries are:

a) since GPA sold all the plots after cancellation, the transactions of GPA becomes void/null? If so how can I cancel 1999 transaction reflected in EC. Land owner sold the same plot in 2001 after Lok Adalath settlement to third party

b) now GPA holder says he will bring 1999 buyer and execute a cancel deed. When 1999 transactions are invalid as he registered after GPA cancellation, on what authority 1999 buyer can execute a cancel deed now?

c) Without involving 1999 buyer, GPA, land owner, can we cancel 1999 transaction as we have a documentary evidence that GPA registered plots after GPA cancellation and through their Lok Adalath settlement, land owner not ratified my plot? If so what is the procedure? If we have to file a civil suit, how long it will take to get a decree since we have all documentary proof with us.
 


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