High Court of Judicature at Madras
S. VAIDYANATHAN, J.
Confederation of Real Estate Developers’ Association of India, (Credai Tamil Nadu)
Versus
State of Tamil Nadu & Another
W.P. No. 33958 of 2013 & M.P. Nos. 1 to 3 of 2013
Decided On : 13-08-2014
Power of Attorney - Registration Procedure - Registration Act, 1908, Section 33, 34-B - The court set aside the Circular issued by the Inspector General of Registration, Chennai, which insisted on the production of a life certificate of the principal for registration of documents based on the General Power of Attorney. The court held that the Circular was beyond the scope of the statute and inconsistent with the provisions of the Act. It emphasized that the registering authority cannot act beyond the scope of the statute and cannot refuse registration based on requirements not specified in the Act.
Fact of the Case:
The Inspector General of Registration issued a Circular requiring the production of a life certificate of the principal for registration of documents based on the General Power of Attorney. The petitioner, an apex body of real estate developers, challenged the Circular, arguing that it was illegal, arbitrary, and causing difficulties to the real estate industry.
Finding of the Court:
The court found that the Circular was beyond the scope of the statute and inconsistent with the provisions of the Act. It emphasized that the registering authority cannot act beyond the scope of the statute and cannot refuse registration based on requirements not specified in the Act.
Issues: The issues included the legality of the Circular, the authority of the Inspector General of Registration to issue such Circular, and the impact of the Circular on the registration of documents based on the General Power of Attorney.
Ratio Decidendi: The court held that the Circular was beyond the scope of the statute and inconsistent with the provisions of the Act. It emphasized that the registering authority cannot act beyond the scope of the statute and cannot refuse registration based on requirements not specified in the Act.
Final Decision: The Writ Petitions were allowed, and the impugned Circular, dated 02.02.2013, was set aside. The court directed the registering authority to act as per the provisions of the Act until a Rule is framed by the Inspector General of Registration with approval from the State Government and its publication.
S. VAIDYANATHAN, J.
1. By proceedings, dated 02.02.2013, the Inspector General of Registration, Chennai, second respondent herein, has issued a Circular to the Registration Departments, to follow the procedure while effecting the registration of the documents based on the General Power of Attorney in and by which, it is directed that the Life Certificate of the Principal who granted the general power attested by a registered Medical Officer or Central/State A Grade Officer with a photo, has to be appended along with the document which is presented for registration based on the General Power of Attorney on or after 1.2.2013.
2. The petitioner is the Confederation of Real Estate Developer’s Associations of India (in short, CREDAI), an apex body of the organized real estate developers/builders across India. According to the petitioner, prior to the impugned circular, there was no obligation for production of life certificate of the principal for registration of the sale deeds presented based on the General Power of Attorney, now by virtue of the impugned Circular, the Registration Department started insisting of production of life certificate of the principal and without which, no registration of the documents presented will be given effect to. The grievance of the petitioner is that if the aforesaid procedure is to be followed, the power agents have to practically approach the Principal for each time whenever the documents are presented for registration, to get life certificate, who, in turn, used to put on terms and insist for additional consideration. Therefore, by calling upon the Principal each and every time to procure the life certificate for registration would certainly invite legal entangle between the Principal and the Power Agent which would ultimately constrain the power agents to approach a Civil Court to enforce the specific performance of the sale deeds. It is further stated that when the sale deed is presented for registration based on power of attorney by complying with all requirements envisaged in the statute, there is no justification on the part of the Registration Department in insisting upon for production of life certificate from the Principal since it creates indifferences between the Principal and Power of attorney holder.
3. Questioning the above said Circular, the petitioner has come forward with the present writ petition.
4. Mr. Satish Parasaran, learned counsel appearing for the petitioner would contend that the impugned circular issued by the Inspector General of Registration is ex-facie illegal, arbitrary and causing innumerable difficulties to the real estate industry. He would contend that when a document is presented by complying with all the requirements enumerated in the Act for registration based on the power of attorney, there is no justification in refusing the same for want of life certificate of the principal. He pointed out that the Registration Act, 1908 (in short, the Act) provides for a comprehensive scheme for the registration of documents and Section 33 of the Act deals with the powers of attorney recognized under the Act for the purpose of registration of document and Section 33(4) envisages that no further proof of a power of attorney is required, when a power of attorney duly authenticated in the manner as provided under Section 33(1) to (3), is produced. According to him, if a duly registered power of attorney is produced at the time of registration, no further proof is required. He also contended that the impugned circular gives a go by to the exhaustive provisions of the Act and incorporates a new procedure. He has further pointed out that if at all any rule is intended to be made and give effect, the Inspector General of Registration, in exercise of his power under Section 69(2) of the Act, he is empowered to do so, however, after making such rule, he has to seek for approval of the first respondent and after publishing in the Official Gazette after approval and hen
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