Can a Power of Attorney Holder delegate his powers under the instrument by appointing further Power of Attorney?
Natarajan M (Advocate) 07 September 2010
I am differing with the opinion expressed by the learned friend Mr. Santhosh. If a "delagation' clause is included in the General Power of attorney, then the agent could delegate his powers to some other person by execution of another GPA.
raj (Lawyer) 07 September 2010
Let me give brief of the present cases :
Case No. (i) The Donee “X” with respect to his property has executed a power of attorney in favour of “Y” and thereby authorized “Y” to execute sale deed. “Y” on the basis of such powers executed an Agreement to sell with “A” who having paid some consideration to “X”. After the said Agreement, “X” expired. In the circumstance, whether “Y” can act on the said power of attorney (which was for a specific purpose of sale of land of “X”) after the death of “X”?
I believe part performance of an Agreement was already carried out during the lifetime of “X” by “A” and therefore, so far as above case is concerned, the power of attorney shall be valid for the purpose of executing sale deed in favour of “A” only.
Case No.(ii) The Donee “X” with respect to his property has executed a power of attorney for a period of 6 months (i.e. January 2010 to July 2010) in favour of “Y” and thereby authorized “Y” to execute sale deed. “Y” on the basis of such powers, executed a sale deed in favour of “A” in March 2010. Simultaneously, “Y” carried out following activities :
a) Based on the powers conferred upon “Y” under the said Power of Attorney, “Y” delegated his powers in favour of “B”. (Yes, there was a clause of further delegation of powers in the said attorney)
b) The Power of Attorney executed by “Y” in favour of “B” was for the period till December 2010 i.e. the period for which “Y” has authority to act under original power
c) Based on the Power of Attorney “B” executed an additional Agreement in favour of purchaser “A” on behalf of Original Donee “X”.
I have gone through the Power of Attorney Act as also several authorities, however, I have not come across any paragraph, link, ratio or line suggesting further delegation of power is possible. The act is silent about it. Therefore, under the circumstances, I am of the following views :
So far (ii) a) It is not possible and therefore, no question that remaining two will be operative.
If anybody reading this has come across any authority in respect of above detailed cases or share different views then I request you to kindly post it here.
Thanks & Regards.
adeeb (LAW OFFICER) 08 September 2010
Further delagation by the power of attorney holder is permissible only if the same is provided for. Further, it is submitted that the power of attorney holder may delgate after the same is confirmed by the Issuer. The delagtion may be made by making the issuer of the power of attorney a conforming party to the deed and thereafter registering the deed as per law.
raj (Lawyer) 08 September 2010
well said Adeeb. I do understand that concept. But the query posted above is slightly on different footing, which you may apprecaite.
Shruti (...) 30 September 2010
I have the same query and Mr. Natarajan's opinion seems to be logically correct. However,I request Mr. Natarajan to please give some authority to support that opinion. Thanks
DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 30 September 2010
Power of attonery is limited authority granted by the doner to the donee , so donee can not enter into the shoes of the doner beyond the terms of the instrument.
Sukriti Guha (Student) 20 April 2017
Dear Mr. Natrajan
In case of a company, what would be the status of the subsequent power of attorneys that the principal (say CEO) issues in favour of other employees in case the principal resigns from the company? Would the power of attorneys in favour of the employees still hold good?
Any guidance would be deeply appreciated.