Sanjaycase (service) 14 March 2013

Question about full power of attorney

This is a general question as I am not a lawyer.

If person A - director of a small company has given full POA to person B. And if Person B has done cheating and issued checks to clients which has bounced. When the client like me files the case will person A only get punished or both.

In short does the POA holder (Like B) can do a fraud using the given authority and escape ?

How can we trap B is B is the real culprit.

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4 Replies

(Guest)

A POA Holder (POA assignee) bears full resposibility, same as that of POA assigner.

But a POA assigner is always deemed to have assigned POA to do all 'legal' acts, therefore even if POA was issued by POA assigner still it will be considered that who actually committed the illegal act.

In your case, it is 'B' the POA assignee who has misused the POA, therefore he is liable. He cannot escape from clutches of law.

Sankaranarayanan (Advocate) 14 March 2013

The B is hell responsibility for that . it will not affect A

(Guest)

@Querist,

Both A and B are liable.The concept of vicarious liability will apply here.

POA is a kind of consent given by a person to other person that whatever theperson(In the name of POA assigned) does,the other person(Who assigned the POA to that other person) will be equally liable.POA creates a master-agent relationship.

Note-This reply should be taken as per the declaration given in my profile page.

Thanks,

Regards,