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
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?
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
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
Dear Sir, Court did not gave any stay order. But I wanted to know the full answer. How the first transaction done by a POA Holder? As per POA law a POA holder in any condition is not eligible for transfer of his POA to another POA holder ? The principal shall be the one who can transfer POA? Please kindly read all the events and guide us.
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)
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.
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.
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.
POA Transfer:
Legal Issues:
Action Steps:
Amend Case:
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.
Dear All Respected Lawyers, Thank you for your answers. I need your kind help in understanding the sections related to it. If POA holder has sold it does it need a signature from principal for registration of sales deed? Can a POA (delegated POA - as first POA holder delegated his POA to another person) holder sell the land to himself - if not which section in the law prohibits to him? If Yes which section in law allows him? Also my question about the property purchase - The Property was purchased from the payment received from my father so do the POA holder require signature of my father for executing the POA deed?
POA and Sale Deed:
Delegated POA and Self-Sale:
Delegation of POA:
Father’s Signature for POA:
Next Steps:
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.
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
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.
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.
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.
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.
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.