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2021 Supreme(Del) 1584

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Anil Kumar & Anr. - Appellants
Versus
Amit - Respondent
C.R.P. 75/2020 & CM Appl. 29472/2020 & C.R.P. 42/2021 & CM Appl. 14739/2021, C.R.P. 44/2021 & CM Appl. 14789/2021
Decided On : 17-11-2021

Advocates appeared:
Mr. N.K. Aggarwal, Ms. Yogita Sunaria, Advocates & Mr. Pankaj, SPA holder of Petitioner (M 9818342898 & 7011447315), for the Petitioner in C.R.P. 42/2021 & CM Appl. 14739/2021 & C.R.P. 44/2021 & CM Appl. 14789/2021; Mr. N.K. Aggarwal, Ms. Yogita Sunaria, Advocates & Mr. Pankaj, SPA holder of Petitioner (M:9818342898 & 7011447315), for the Petitioner; Mr. Amarjeet Singh Sahni, Advocate (M:9810047975), for the Respondent

The main legal point established is that an advocate cannot act in the dual capacity of a power of attorney holder and an advocate, as it is contrary to the provisions of the Advocates Act, 1961.

Headnote:

Advocates Act, 1961 - Power of Attorney - Order VII Rule 11 CPC - Settlement of Dispute

Fact of the Case:

The petitions arose from suits related to a property dispute. The main issue was whether the power of attorney holder of the Plaintiff could also appear as a counsel in the matter. The disputes were settled through a Deed of Settlement/Memorandum of Understanding.

Finding of the Court:

The Court found that the power of attorney holder cannot act as a counsel for the Plaintiff and that the disputes had been settled through a Deed of Settlement/Memorandum of Understanding.

Issues: The main issue was the role of the power of attorney holder in the legal proceedings and the settlement of the disputes.

Ratio Decidendi: The Court emphasized that the practice of advocates acting as power of attorney holders and advocates in the matter is contrary to the provisions of the Advocates Act, 1961. It also highlighted the importance of ensuring that the settlement is legal and in accordance with the law.

Final Decision: The petitions were disposed of in view of the settlement between the parties, and the parties were directed to appear before the Trial Court for presenting and recording the settlement.

JUDGMENT

Prathiba M. Singh, J. (Oral). - This hearing has been done through hybrid mode.

2. These petitions arise out of three different suits relating to the same property bearing No. WZ-50B-F, measuring 281 sq.yds. out of khasra No. 698, situated in the abadi of Old Lal Dora (1908-09) of Village Basai Darapur, Delhi.

3. C.R.P. 75/2020 arises out of the impugned order dated 18th November, 2019, in CS No. 734/2018 titled Amit v. Anil & Ors., by which the application of the Petitioner/Defendant No. 2 (hereinafter “Defendant”) under Order VII Rule 11 CPC has been rejected. In the other two petitions, the applications under Order VII Rule 11 CPC have been dismissed in default.

4. C.R.P. 42/2021 arises out of the impugned order dated 5th February, 2021, in CS No. 198/2019 titled Amit v. Ashok Kumar & Ors., by which the application of the Defendant under Order VII Rule 11 CPC has been dismissed in default, by the Trial Court.

5. C.R.P. 44 of 2021 arises out of the impugned order dated 5th February, 2021 in CS No. 199/2019 titled Amit v. Ashok Kumar & Ors., by which the application of the Defendant under Order VII Rule 11 CPC has been dismissed in default, by the Trial Court.

6. The question raised in these petitions was whether Mr. Amarjeet Singh Sahni, who was acting as the power of attorney holder of the Plaintiff, Mr. Amit Ved/Plaintiff/Respondent herein (hereinafter “Plaintiff”), and had verified the plaint on behalf of the said Plaintiff could appear also as a counsel in the matter. In C.R.P. 75/2020, vide order of the Court dated 13th July, 2021, Mr. Sahni submitted that he would withdraw his Vakalatnama and continue as the power of attorney holder and he would no longer act as a counsel for the Plaintiff. He again assures this Court that he would withdraw his Vakalatnama in the Trial Court proceedings and he would no longer act as a counsel for the Plaintiff in this matter. He submits that he shall take steps within 2 weeks for substitution of the Vakalatnama by a new counsel.

7. It is made clear that the practice of advocates acting as power of attorney holders of their clients, as also as advocates in the matter is contrary to the provisions of the Advocates Act, 1961. Any advocate who is engaged by a client would have to play only one role, i.e., that of the advocate in the proceedings and cannot act as a power of attorney holder and verify pleadings and file applications or any other documents or give evidence on behalf of his client. This aspect has to be scrupulously ensured by all the Trial Courts. This legal position has been settled by various decisions. In Baker Oil Tools (India) Pvt. Ltd. & Ors. v. Baker Hughes Ltd. & Ors., 2011 (47) PTC 296 (Del), the Court held:

“Thus as is manifest from the said rule, it would be a professional misconduct if a lawyer were to don two hats at the same time. However not only that, the partnership firms have a hurdle for acting in the said two capacities even under The Partnership Act, as every partner in a partnership firm is an agent of another and if one were to be acting as an advocate for a client, the rest would also be in the same capacity by virtue of agency and the same would be the situation in case of an advocate acting as a client. However, it cannot be forgotten by any who has ever been graced with the honour of wearing the robe that the lawyer is first an officer of the court and his prime duty is to assist the court in the administration of justice. The rules of conduct as per the Bar Council Of India Rules may act as a guardian angel for ensuring the moral conduct of the lawyers but the legacy of the traditions of the Bar cannot be bedaubed by a few for the lucre of commercial gains. A lawyer cannot forget that this is called a noble profession not only because by virtue of this he enjoys an aristocratic position in the society but also because it obligates him to be worthy of the confidence of the community in him as a vehicle of achieving justice. The rules of conduct of

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