• Can someone sell property with Power of Attorney

Dear Sir, We had purchased a land in Pune area in our mother name. I financed the deal. Then I went out of town for job purpose and my siblings were in college doing graduation. One developer approached my family and asked for development rights and done development agreement and Power of attorney. He paid some nominal amount to our mother by cheque out of which one cheque bounced - unpaid. After that to our surprise he transferred his power of attorney to one of prominent developer in our area. The new developer , to our surprise made the sale deed in his own name and signed the documents like the one who is seller and also buyer. Got land mutation on his name - we objected it in the local tehsil office but due to weight of lot of money nobody listed to us. in between we approached one lawyer and published a notice in paper about cancellation of first party POA. But even then after a month sale deed was done. We approached court, first lawyer deceived us by taking hefty sum from developer. We changed our lawyer and reframed our case. Now case hearing was going on since last 10+ years. Recently 5 months back the land was sold to another developer and mutation was done. what are our options and how shall we rephrase the case?
Asked 20 days ago in Property Law
Religion: Hindu

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17 Answers

did court grant any stay order restraining sale of property 

 

kindly clarify 

 

you can amend suit seek court orders to set aside fraudulent sale deeds executed by developer 

Ajay Sethi
Advocate, Mumbai
97268 Answers
7856 Consultations

Yes it can be sold but it has to be registered later only selling through POA now is not valid as per Supreme Court judgement 

Prashant Nayak
Advocate, Mumbai
32698 Answers
208 Consultations

Yes only principal can transfer. If anyone transfers with principal then the POA is void 

Prashant Nayak
Advocate, Mumbai
32698 Answers
208 Consultations

The law is settled that though the general power of attorney holder cannot delegate his powers to another person but the same can be delegated when there is a specific clause permitting sub-delegation.

 

2) 

General Power Of Attorney Holder Can Sub-Delegate His Powers If There Is A Specific Clause Permitting Sub-Delegation : Supreme Court

Ajay Sethi
Advocate, Mumbai
97268 Answers
7856 Consultations

Since you have already filed the suit, it is pertinent that you implead the new buyer as a necessary party to the suit in the capacity of subsequent purchaser and pray to declare his sale deed as null and void.

Also you can file an injunction application against him to restrain him from further alienation or encumbering the property in any manner till the disposal of the main suit.

T Kalaiselvan
Advocate, Vellore
87470 Answers
2348 Consultations

If there was a clause authorising the power agent to transfer his power to another power of attorney agent then the same will be valid if not then it can be considered as an invalid document hence any transaction done on the basis of said document, shall be invalid and not maintainable.

T Kalaiselvan
Advocate, Vellore
87470 Answers
2348 Consultations

Your understanding of law is absolutely correct. The  principle is, Deligatus non potst delegare,” That is, “A delegated power cannot be further delegated.” There is no foundation for second transaction. It is bound to fail. By transferring authority to second builder, first builder played fraud on you and his POA became invalid. You can file criminal complaint  against first builder for criminal breach of trust. Second builder has not power to transfer the  property, he is stranger to the  transaction. I don’t understand why the  suit is pending for ten years.

Ravi Shinde
Advocate, Hyderabad
4292 Answers
42 Consultations

  1. POA Transfer:

    • A POA holder cannot transfer the POA to another person unless explicitly authorized.
    • The sale deed executed by the first POA holder is invalid if beyond the scope of the original POA.

  2. Legal Issues:


    • Cheque bounce indicates bad faith.

    • Unauthorized sale by the POA holder to himself (via another developer) is a violation of fiduciary duty.

    • Subsequent sale and mutation are invalid if the first transaction is void.

  3. Action Steps:


    • Challenge the First Sale:

      • Argue fraud and unauthorized action by the POA holder.


    • Challenge Subsequent Sale:

      • Highlight that the second sale is void as the first was invalid.


    • Seek Stay:

      • Request a stay order to prevent further transactions or construction.


    • Criminal Complaint:

      • File for cheating (Section 420 IPC) and forgery (Section 468 IPC) against the developers and POA holder.

  4. Amend Case:

    • Add claims to nullify both sales and restore ownership to your mother.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes to write a review, it would be greatly appreciated. Thank you.

Shubham Goyal.

Shubham Goyal
Advocate, Delhi
352 Answers

  1. POA and Sale Deed:

    • A POA holder does not need the principal’s signature for registering a sale deed if the POA authorizes the sale explicitly.

  2. Delegated POA and Self-Sale:


    • Prohibited unless explicitly authorized in the POA.

    • Legal Basis:


      • Section 53, Indian Contract Act: Agent must avoid conflicts of interest.

      • Section 190, Indian Contract Act: Prohibits unauthorized delegation.

  3. Delegation of POA:

    • Delegation is allowed only if:

      • Specifically permitted in the original POA.
      • Necessary for executing the principal’s instructions.

  4. Father’s Signature for POA:

    • Not required unless the property is jointly owned or there’s proof of joint ownership.

Next Steps:

  1. Verify POA terms for delegation and self-sale.
  2. Challenge the sale deed if beyond the POA scope.
  3. File for cheating (Section 420 IPC) and breach of trust (Section 406 IPC) if fraud is involved.

For further advice, consider a phone consultancy. Hope this helps. If you could spare two minutes to write a review, it would be greatly appreciated. Thank you.

Shubham Goyal.

Shubham Goyal
Advocate, Delhi
352 Answers

Principal signature is not necessary for sale deed registration if property is sold by POA holder 

 

POA has to be executed by person who is the owner of property 

 

if your father name  is not reflected as owner of property his signature is not required 

Ajay Sethi
Advocate, Mumbai
97268 Answers
7856 Consultations

section 33 of Registration Act.

Ravi Shinde
Advocate, Hyderabad
4292 Answers
42 Consultations

A power of attorney cannot assign their authority to another person unless the original POA document expressly grants them that power. Such a clause is uncommon because the principal has typically chosen a specific person or persons they trust to act as their agent.

Because the Power of Attorney holder is also the proprietor of the property involved, he may legally sell the property to himself as well. But it cannot be transferred through PoA unless by a registered sale deed. This is per the latest Supreme Court judgement on power of attorney.

PoA remains valid only till the life of the principal. Within their lifetime also, one can revoke the PoA. A SPA gets revoked on its own as soon as the specific transaction for which it was executed is completed.

The Powers-of-Attorney Act, 1882 is a law in India that defines a power of attorney as an instrument that gives a person the authority to act on behalf of another person.

The validity of a power of attorney deed is governed by the provisions of the Powers of Attorney Act, 1882 and the Registration Act, 1908.

Section 33 of the Registration Act recognizes the following powers of attorney.

Executed before and authenticated by a Registrar or Sub-Registrar .

Executed before and authenticated by a Magistrate.

Executed before and authenticated by a Notary Public, or any Court, Judge, Magistrate, Consul or Vice-Consul, or representative of the Central Government.

The Supreme Court has ruled that a power of attorney cannot be recognized as a title document or a document that confers rights in any immovable property.

T Kalaiselvan
Advocate, Vellore
87470 Answers
2348 Consultations

Dear Client,

 

In your case, the abuse of the POA and subsequent illegal transactions are clear violations of property laws. A POA holder is the agent who acts on behalf of the principal (in this case, your mother) and cannot transfer the POA to another unless so authorized in the original POA. The second developer selling to himself, and subsequent mutation, is a legally questionable transaction as it involves breach of fiduciary duty and the unauthorised sale. Publication of cancellation of POA in newspaper would add strength to your case but the fact that no stay order was passed made it possible to complete more transactions. Frame the case: Highlight illegality in the POA transfer, and hence, the fraudulent sale deed and no consent from your mother. Seek cancellation of all subsequent transactions, restoration of ownership of the land to you, and damages for financial and emotional distress. File a petition for interim stay on further alienation of the property, present all legal notices and documents in proper format, and move for expeditious disposal citing delay that has become too protracted. The case requires careful legal drafting to emphasize procedural violations and abuse of the POA.

 

Hope you find this answer helpful in resolving the issue.

Anik Miu
Advocate, Bangalore
10299 Answers
121 Consultations

1.POA executed in one's favour can not be transferred in favour of any other person.

 

2. All the subsequent transactions are illegal, hence invalid.

Krishna Kishore Ganguly
Advocate, Kolkata
27501 Answers
726 Consultations

Since the POA holder has transferred his power to the third party by transferring the said POA, all the transactions based on the transferred POA will be considered as illegal, hence invalid.

Krishna Kishore Ganguly
Advocate, Kolkata
27501 Answers
726 Consultations

1. If the POA executed in favour of the 1st holder allows him to sell the property for and on behalf of the executed of the POA, then he can sell the said property.

 

2. However, the person with the transferred POA can not act in any way based on the said transferred POA.

Krishna Kishore Ganguly
Advocate, Kolkata
27501 Answers
726 Consultations

No once sold by POA registration will also require his signature unless same is canceled by principal or he is dead

Prashant Nayak
Advocate, Mumbai
32698 Answers
208 Consultations

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