One Partnership concern, having 5 partners from one family, aquired Lease hold rights on a plot of District Industries Centre in the year 1988, After few years 4 partners of the firm gave an unregistered Notorized Power of Attorney to one partner for transferring the lease hold right to other Person/Body. One Pvt Ltd company purchased the lease hold right in the year 1998 and get it mutuated in Companies name on the record of District Industries Centre, thereafter got the Map approved from local authority, erected the building on the said plot and applied for a Loan in the Bank.
DIC has issued NOC for creation of Mortgage but Banks Law officer says that Since POA was not registered as such transfer of lease rights of the propety can not be treated as concluded and has raised question regarding creation of a Valid EM giving the example of Hon Supreme Courts verdict in the case of Kishore chandra Singh Deo V/s Babu Ganesh Prasad Bhagar AIR 1954 (SC)316
. Whether law prohibits to create EM on such Property. As far as my knowldge is concern Hon Supreme Court has clearly directives in their judgement in 2011 in the case of Surat lamp & industries Vs State of Hariyana2009 7SCC363, that These transactions are not to be confused or equated with Genurine transactions where the owner of a property grants a power of attorney in favour of family members.
In this case unregistered Power of attorney has been given to the family members more over authorization to one partner by all other partners for transferring the right and they all are alive and ready to confirm the sale/transfer on their behalf.
Please advise me the gorunds so that Banks lawyer can be convinced.
