We are contesting a case in the court wherein we have file under the specific performance act under a sale agreement. The case is being contested. Meanwhile the landowners, have given a GPA [the GPA was notarised first, and the notarised GPA was itself registered after a few days at the appropriate Sub-Registrar by paying the proper stamp duty, without the landowners being present at the sub-registrar] to a third party. Further using this GPA document the Third Party has registered property to himself within few days from the execution and Registration of the GPA. In the GPA it does not specific mention the transfer of Property to The GPA Holder himself, but it mentions "To execute sale deeds, agreements, and all other necessary documents in favor of any prospective customer in respect of the entire property or any part thereof" and "To get the names of the proposed purchasers entered in the revenue record and to adduce evidence, to sworn and file affidavits, to submit applications and to do all other acts for the same" Are there any previous Specific Judgements against SELF TRANSFER of property through a GPA, where both vendor and vendee cannot be the same?
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POA cannot be barred by law from selling the property to himself.
In this case, he sells the property on the behalf of his Principal using the Power of Attorney and buys it as a buyer. If the passing of consideration is not disputed then the sale deed executed by the Power of Attorney to himself as a buyer is completely legal.
If the GPA holder can sell the immovable property mentioned in the schedule of the power document by the virtue of this registered POA deed to a prospective buyer, then the GPA holder can sell the immovable property unto himself also by paying the sale consideration amount and the applicable stamp duty, there is no legal infirmity in it.
Dear client,
In a number of rulings, the Indian Supreme Court has addressed the subject of self-transfer via General Power of Attorney (GPA). The court determined that a registered sale document is the only method of transferring immovable property—a GPA cannot be used in the 2012 case of Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana. This ruling highlights that in order to transfer property, a document must be registered. Furthermore, the court in Om Prakash v. Rattan Lal (2014) reaffirmed that a GPA for immovable property does not transfer ownership and cannot be regarded as an instrument of title. The Registration Act, namely Section 17(1A), reaffirms that registering the sale deed is necessary in order to transfer property. Together, these rulings show that a GPA by itself is insufficient to complete a property transfer, and self-transfer by such methods is illegal.
Hope this helps you.
If the gpa authorises that to him on behalf of principal then he can
your contention that the vendor and vendee cannot be the same appears to be misconceived
the vendor is acting through a GPA holder and the vendee is the GPA holder himself
this does not make the vendor and vendee the same person
the agreement is essentially between the vendor [acting through his POA ] and the vendee [who is the POA holder himself]
this is not barred under the law
here though on the face of it, it would appear that both parties to the agreement are the same person, but it is not so
to repeat the vendor is acting through his POA holder and the vendee is the POA holder himself. so these are two different people
if consideration is passed on from the vendee to the POA holder of the vendor and the POA holder has not accounted for that money so received to his grantor, then the grantor of the POA has to sue the POA holder and also revoke his POA
But that may not render the sale effected through the agency of the POA holder as null and void, unless the owner proves that the sale was fraudulent with intent to cheat and deceive the owner
also the landowner, if he has not received the consideration from his POA, then he can also ask for cancellation of the registered deed and restoration of possession [if possession is also passed on]
