According to the Power of Attorney Act of 1882, a POA is any document that gives a specific person (the agent) the authority to act on behalf of and on behalf of the person who executed it (principal).Hormusji K. Bhabha vs Nana Appa on 30 January, 1934 defines Power of Attorney.
The agent may also be known as the POA holder or attorney-in-fact. The POA gives the agent the legal power to decide on behalf of the principal in areas involving their property, finances, or medical care. It creates a principle-agent relationship, making the person who granted the POA (the principal) legally responsible for the agent’s actions when using the authority granted by the POA. In most cases, the POA is revocable. There are also irrevocable POAs.
Satyawan v. Govt of Delhi and Ors deals with registration of Power of Attorney.
There are two types of POA in India, which are as follows:
General Power of Attorney: The general POA enables the agent to act on behalf of the principal in any situation where it is legal to do so. On behalf of the principal, the agent may be permitted to sign checks, lease property, purchase stocks, appoint caretakers for assets, and sell property, present in court in legal proceedings, among other things.
Specific Power of Attorney: A specific POA enables the agent to act on behalf of the principal with respect to a particular issue or subject. For instance, the particular POA may specify that the agent may only receive rent payments from a property. The agent is then unable to either sell the house or increase its rental term. An agent who has been given a specific POA is not permitted to go outside their authority and make decisions about broader legal issues.
When can a PoA be canceled?
The Executor/Principal has the right to withdraw the POA at any time if he determines that the Attorney has beyond the scope of his authority, the POA’s intended use has passed, the Attorney has passed away, become bankrupt, or has become insane. Amar Nath vs Gian Chand on 28 January, 2022, The Supreme Court has ruled that simply writing “cancelled” on a registered power of attorney does not render it void.
This privilege may not be used by the primary in some circumstances where the POA is irrevocable, especially if the Attorney has an interest in the matter covered by the POA.
Express intent: If the principal (executor of a PoA) deems fit that the agent (person who represents the principal) should be snatched off his authority, he can revoke the PoA.
Stated purpose: A PoA can be canceled when its stated purpose is completed. For example, if a PoA was created for the sale of a property, its applicability ends with the sale.
Time frame: When the time frame of its applicability ends. This means that the principal should never leave the time frame open-ended.
Breach of contract: The principal can revoke the PoA if the agent is in breach of the contract.
Agency insolvency: The principal can revoke the PoA if the agent has gone insolvent.
Agency lunacy: The principal can revoke the PoA if the agent has become unsound of mind.
The demise of the agent: A PoA gets canceled at the demise of the agent.
The agent’s consent is not necessary to revoke the PoA in the instances described above. The same is not valid, though, if the agent has a stake in the topic.
The Indian Contract Act, 1872’s Section 202 states: “Where the agent has himself an interest in the property, which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the detriment of such interest.”
Procedure for Cancellation of Power of Attorney:
An only notarized revocable POA may be canceled or revoked by sending the Attorney a notification or letter of revocation. The cause for the revocation, the date it became effective, and any consequences should all be stated in the letter of revocation. The Attorney should receive due service of the aforementioned notice/letter. After issuing such a letter of revocation, it is also advised to publish the letter in print.
A Deed of Revocation, which must also be registered at the Executor’s house, can revoke a revocable Power of Attorney that has been registered before the registrar or sub-registrar. The cause of revocation, the date it became effective, and the consequences should all be included in the deed. A copy of the deed should be submitted to the attorney notifying him of the revocation after it has been created and registered. Following the issuance of such a deed of revocation, a printed publication should be made so that the general public is informed that the power has been canceled.
An irrevocable power of attorney, as defined by its wording and title, is however challenging to revoke, particularly if the attorney has a stake in the matter covered by the power of attorney. However, if there is a power violation, a revocation notice can be issued, and in some circumstances, the proper court can be contacted to request revocation.
If the executor or attorney dies, becomes bankrupt, becomes insane, or if the POA’s intended use has been fulfilled, the POA will immediately revoke.
Process of PoA cancellation-
Any Power of Attorney may be canceled or revoked, but there are a number of actions that must be taken and in a precise order in order for the revocation to be legally enforceable. The following is a list of the stages for such revocation of the Power of Attorney:
First off, only a revocable PoA that has been legally notarized can be revoked by sending a notice or a letter of revocation to the appropriate Attorney.
The reason this power (PoA) is being revoked, the date it became effective, and the results of such an action must all be stated in the letter of revocation.
The Attorney must receive proper notice of a letter in order to start the revocation process.
In order to notify all parties interested in the matter, a paper publication must also be delivered after the letter of revocation is issued.
The Deed of Revocation, which must also be registered at the executor’s address, can also be used to revoke a revocable Power of Attorney that has been registered before a registrar or a sub-registrar.
The cause for the revocation, the date it became effective, and any potential consequences must all be included in the deed.
A copy of this deed must be provided to the attorney to inform him of such a revocation after it has been made and registered.
To ensure that the general public is aware that the power has been withdrawn, a paper publication must be made immediately following the issuance of the Deed of Revocation.
It is crucial to keep in mind that it might be extremely challenging to withdraw an irrevocable power of attorney, especially if the attorney in question has a stake in the matter covered by the power of attorney.
However, if the authority is violated, a revocation notice may be given, and in some circumstances, a court with the proper jurisdiction may be contacted to bring about the revocation of the POA.
However, the Power of Attorney also automatically terminates or is revoked in the event of the demise, insolvency, or insanity of the named executor or even the Attorney, as well as in situations where the PoA’s principal objective has been achieved.
As a result, we can divide powers of attorney (PoA) into two categories: general and special. A PoA that has already been registered can, in a number of circumstances, also be canceled. One of these scenarios, as previously mentioned, typically results in the breakdown of the relationship between the authorizer and the attorney. However, the procedure for canceling any PoA that is revoked for any reason is the same as that described above.
- How to cancel a Power of Attorney in India, https://vakilsearch.com/advice/how-to-cancel-a-power-of-attorney-in-india/
- Procedure for cancelation of Power of Attorney in India, https://www.helplinelaw.com/real-estate-wills-probate-and-trust/PCPA/procedure-for-cancellation-of-power-of-attorney-in-india.html
- How to cancel Power of Attorney in India, https://cleartax.in/s/how-to-cancel-a-power-of-attorney
- Power of Attorney, http://www.legalservicesindia.com/article/1136/Power-of-Attorney.html
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