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Krish Narayan (Advocate)     04 September 2011

Death of agent after passing specific performance decree

Dear Experts,

Greetings.

A client  needs certain clarifications.

As per facts of the case, 'A' is Principal. He authorises B to sell his landed property and executed a power of attorney deed in his favour. Agent B paid the sale consideration in full to the Principal A and obtained a receipt from him to that effect. Thus it is an agency coupled with interest.

Then the Agent B entered into an agreement for sale with C. Since B did not come forward to execute sale deed in his favour, C filed a suit for specific performance. After full trial C obtained the decree. C deposited the balance sale consideration into court even at the time of filing the suit. Agent B was directed to execute and register the sale deed in favour of C, being the decree holder.

Now these were going in usual way, there was a turning point after passing the decree in several aspects

(1) After passing the decree Agent B died.

(2) Alike after passing the decree, the decree holder C also died.

(3) Then the Principal A also died.

In this situation, a client 'D' is interested to purchase the said landed property. He needs the following things to be clarifed.

(1) After passing of the decree, the Agent B has to execute and register the property to C. But here Agent B died and C also died. By the death of Agent B (it may noted that B ded after the decree), will the power be terminated? Here it is pertinent to point out that the agent B already paid the sale consideration in full to his Principal A.

(2) Since the decree holder C died, can his legal representatives execute the sale deed directly to the client D? (Because as per decree it is the agent B has to execute the sale deed to C. But B died. As per normal course of proceedings, if the Judgment debtor fails to execute the sale deed, then the court has to execute the same to the Decree holder)

(3) Can the said specific performance decree be made over to the client 'D'?

(4) If not, in what legal way the client 'D' purchase the landed property, the legal heirs of 'C'?

I hope the experts will help this client by their legal wisdom.

Thanks and Regards.

PRJ



Learning

 9 Replies

Adv Archana Deshmukh (Practicing Advocate)     04 September 2011

D can purchase the property from the heirs of the decree holder i.e C.

1 Like

Krish Narayan (Advocate)     04 September 2011

@Adv. Archana

Thanks for your valuable advice.

Deepak (trainee)     05 September 2011

Dear Sir,

               As Adv Archana has stated the property can be purchased from the heirs of 'C', but a legal hitch is there wherein if the legal heirs of 'B' choose to go on appeal then your client's rights will be jepordized in the event of the appeal going in favor of the heirs of 'B' and there is every chance for that happening as Specific Performance cannot be executed after the person supposed to execute is dead, and here the person 'B' as being dead the Court might possibly rule in favor of the heirs of 'B'. This possibility exists only in the event "APPEAL".

Best wishes,

Deepak Vama.

1 Like

Krish Narayan (Advocate)     05 September 2011

@Mr. Deepak.

Dear Sir,

Thanks for your reply and valuable suggesstion.

Here it is pertinent to point out the following two important facts.

(1)  6 years had lapsed after passing of the decree.

(2) One of the son of B (the deceased agent) ie. client D is going to purchase the property. In other words it is a repurchase of father's property. The other heirs will be the consenting witnesses.

Further yesterday I advised the client D to get the decree registered first by the heirs of C and then ask them to execute and register the sale deed in his favour. I hope the client is now safe intoto.

Regards.

Jayarajan.

Krish Narayan (Advocate)     05 September 2011

Dear Experts,

If there is any contra opinion to safeguard this client further, it may kindly be notified. The registration process will be held next week.

Thanks and Regards

Jayarajan.

niranjan (civil practice)     05 September 2011

B was merely power holder and not the owner.It is only the owner who could execute sale deed,In my opinion D should get sale deed from heirs of A.

1 Like

kvss.prabhakar rao (Advocate )     06 September 2011

 though decree passed whilest alive of agent after death of agent the pwer would came   to an  end and the legal hies of agent are not liable to execute decree and the decree itselt not binding precednet on deaht of agent to his legal hiers . Next  the legla heirs of decree holder can file execution  proceddings  agsint legal heirs of principal. the decrree though passed  reprsented by agent on bhehalf of pricnipal. So legal hiers of principla are binding they should abide by the decree. Since time of two years was elapsed you must sent first  Or 21 Ruel 22 noitce to legla heirs.

K.V.S.S. PRABHAKAR RAO , ADVOCATE, RAJAHMUNDRY ( A.P )

1 Like

Krish Narayan (Advocate)     07 September 2011

@Mr. Niranjan and Mr. K.V.S.S.P.,

Dear Sirs,

Thanks for your opinions.

As per facts of the case, the agent B has given the sale consideration to the principal A and obtained a stampted receipt from him even prior to the agreement for sale. Thus the agent B has got interest over the property to be sold. There was no express contract to terminate the agency between A and B before their deaths.

Now as per Section 202 of the Indian Contract Act, "Where the agent has himself an interest in the property which forms the subject matter of the agency, the agency, cannot, in the absence of an express contract, be terminated to the prejudice of such interest".

As per illustration to it, "A gives authority to B to sell A's land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death".

Further as per Section 203, "The principal may, save as is otherwise provided by the last preceeding section, revoke the authority given to his agent at any time before the authority has been exercised so as to bind the Principal".

Here the Principal A had already received the sale consideration amount from the Agent B. By this the Principal made himself binding to the agency. Moreover acting upon the agency, the Agent B entered into sale agreement and after suit by C, decree also passed. Thus the Agent B has exercised the authority given to him. Thereafter he died. Principal A's control over the agency ceased to have effect on when he issued a receipt for the sale consideration.

Thus according to me, since it was an agency coupled with interest as I have already stated supra, the heirs of decree holder C can execute and register the sale deed to D, in pursuance of the Decree.

I hope this view holds good.

Thanks and Regards,

Jayarajan.

 

niranjan (civil practice)     07 September 2011

In that case it amounts irrecoverable power and on the strength of that power the sale deed can be executed.


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