SUPREME COURT OF INDIA
(From the High Court of Himachal Pradesh at Shimla)
K.M. JOSEPH, PAMIDIGHANTAM SRI NARASIMHA, JJ.
Amar Nath – Appellants
Versus
Gian Chand And Anr. - Respondents
Civil Appeal No. 5797 of 2009
Decided on : 28-01-2022
Certainly. Based on the provided legal document, here are the key points:
Evidence such as correspondence and witness testimony indicated that the power of attorney was not effectively canceled before the execution of the sale deed, undermining the plaintiff’s claim that the authority was withdrawn (!) (!) (!) .
Authority to Execute and Present Sale Deed:
The presentation and registration of the sale deed by the agent, who was authorized under a valid power of attorney, are legally permissible, even if the original power of attorney was not physically produced at the time, as long as the copy was certified and duly registered (!) (!) (!) .
Effect of Cancellation and Communication:
Evidence such as correspondence between the parties and witness testimonies indicated that the alleged cancellation was not properly communicated or registered, thus the authority of the agent remained in effect at the time of sale (!) (!) .
Validity of Sale and Legal Procedures:
The registration process, including compliance with relevant registration provisions and proper identification of the parties, was properly conducted, supporting the legitimacy of the sale (!) (!) (!) .
Role of Evidence and Court Findings:
The courts emphasized that the cancellation of a registered power of attorney requires proper legal procedures, including registration and clear communication, which were not satisfied in this case (!) (!) .
Court’s Conclusion:
These points collectively highlight that the legal validity of the sale depended on the proper execution, recognition, and communication of the cancellation of the power of attorney, which, in this case, was not established according to legal requirements.
| Table of Content |
|---|
| 1. existence of conflicting claims regarding property sale. (Para 2 , 3 , 4) |
| 2. trial court's issues framed in property dispute. (Para 5 , 6 , 7) |
| 3. high court's framing of substantial questions of law. (Para 8 , 9) |
| 4. understanding of registration act provisions. (Para 12 , 18) |
| 5. agent's authority and proper execution under the law. (Para 24 , 25 , 33) |
| 6. effectiveness of revocation of agency and its communication. (Para 36 , 51 , 53) |
| 7. final decision overturning lower court's judgment. (Para 63) |
JUDGMENT :
K.M. JOSEPH, J.
1. By the impugned judgment the High Court in a second appeal has reversed the concurrent findings rendered in a suit filed by the first respondent and the appellant who is the second defendant in the suit has filed the present appeal. The second respondent who is the second defendant in the suit though served has chosen not to appear. The parties shall be referred to by their status in the Trial Court.
THE SUIT
2. The plaint schedule property hereinafter referred to as the ‘property’ consists of 2 Kanals, 10 Marlas and odd land belonged to the plaintiff and was in his possession. He was serving as a junior engineer. He entered into an oral agreement for the sale of the property for a consideration of Rs. 55,000/-. It is the plaintiff’s case that when the plaintiff came on leave, the first defendant could not arrange the money and asked for further time. The plaintiff bonafide executed a special power of attorney in favour of the IInd defendant for selling the property for the amount of Rs. 55,000/-. As the negotiation fell through in view of the first defendant not being able to arrange the money, the second defendant to whom the power of attorney was executed, surrendered the original to the plaintiff, and the plaintiff told the first defendant that the same stood cancelled. The second defendant is alleged to be a deed writer and a clever person. He applied for the copy of the power of attorney, and fraudulently in collusion with the first defendant, executed the sale deed on 28.04.1987 for Rs. 30,000/. The second defendant, according to the plaintiff, could not execute the sale deed in the absence of the original power of attorney, and the sub registrar was supposed to verify the aspect from the second defendant under Sections 32 , 33 and 34 of the REGISTRATION ACT . The sale deed was without authority. The second defendant ‘was not competent to transfer the possession’. The special power of attorney is deemed to have been cancelled in the eye of law since it was handed over to the plaintiff. When the plaintiff came from his service and enquired with the officials of the revenue staff or the consolidation authority, and got the copies, then he came to know about the sale and that the mutation has been sanctioned. It is on this case that the plaintiff filed a suit for declaration by way of permanent injunction that he is the owner in possession of that property and the mutation showing the sale in favour of the first defendant, by the second defendant, was null and void, and that the second defendant was not having any authority to sell the land owned by the plaintiff, and hence the defendant be restrained from interfering with the ownership and possession of the plaintiff. It was further prayed that in case it was proved that the second defendant was an agent of plaintiff then in that case, the suit for rendition of accounts be decreed.
3. The first defendant (appellant) in his written statement inter alia pleaded that he while admitting that the plaintiff is a junior engineer, his actual place of posting was not known to him. It is also admitted that the first defendant entered into an agreement orally to get the property purchased for Rs.30,000/- and not Rs.55,000/-. It is denied that the first defendant could not arrange for the money. The plaintiff received Rs.10,000/- as part price. The re
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Registered Power of Attorney presumed valid under S.114(e) Evidence Act unless fraud specifically pleaded and proved; lack of Tamil literacy and attesting witness ignorance insufficient to invalidate....
A power of attorney is not compulsorily registerable under the Registration Act for the purpose of presenting a deed of sale; furthermore, a suit for declaration against such transactions is subject ....
A sale deed executed after the cancellation of a power of attorney is invalid under the Power of Attorney Act, reinforcing the principle that authority must exist for legitimate transfer of property ....
A sale of immovable property is incomplete without registration, making an unregistered sale deed invalid, particularly when a power of attorney is cancelled.
The main legal point established in the judgment is that the Power of Attorney was executed as a security for a loan and the sale deed was executed without consideration, making it void.
No right, title, or interest in immovable property can be conferred without a registered document, validating the necessity for registration per applicable laws.
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