The duty of the Principal to perform his part of the contract as long as the Power of Attorney is in force and the validity of the circular on the life certificate requirement in the absence of lawful cancellation of the Power of Attorney.

1. This writ petition has been filed by the petitioner seeking for a Mandamus to the second respondent to complete the registration formalities in respect of the pending documents 82, 84, 87, 90, 92, 110, 123 and 132 of 2018 on the file of the second respondent and release the registered documents without insisting the Life Certificate of the Principal in the prescribed format.

2. The petitioner and the third respondent entered into a Joint Development Agreement dated 19.11.2010 (in short “JDA”) for the development of the land belonging to the third respondent in Shanthi Colony, Anna Nagar, Chennai. The petitioner paid Rs.20 Crores towards refundable Security Deposit (SD). As per the JDA, the land owner/third respondent was entitled to 65% of the Gross Margin and the Developer/petitioner was entitled to 35%. The land developer/ petitioner was given a Power of Attorney dated 08.12.2010, which was duly registered as Document No.1353 of 2010 at Sub Registrar Office, Anna Nagar. The said Power of Attorney is an absolute one with full power of alienation and is said to be valid as on date. The project is also registered with the Tamil Nadu Real Estate Regulatory Authority (in short “RERA”) and the land owner/third respondent is a co-developer and he has a statutory obligation to register the sale deed and handover the units to the individual customers.

3. It appears that there were income tax dues on the part of the land owner/third respondent, being a partner in a firm called RJK Investments to the tune of Rs.5 Crore. The income tax Department had attached 2058 sq. ft. of Undivided Share (UDS) of the land out of the Project land and a writ petition in W.P.No.7456 of 2016 was filed and the attachment order was modified. There is also borrowal by the third respondent from private financiers and he has been facing litigation before various Courts.

4. The petitioner contended that it was unable to sell the units, in view of various attachment orders over the property. While so, the third respondent moved this Court in O.P.No.283 of 2017 and sought for appointment of an Arbitrator, as per the JDA and an Arbitrator was also appointed and the proceedings are in progress, which has reached the trial stage.

5. A circular dated 02.02.2013 was issued by the Inspector General of Registration/first respondent directing the registering authorities to insist upon the production of Life Certificate of the Principal, at the time of registration of documents, whenever presented through the agent. However, if the General Power of Attorney was registered on or before 01.02.2013, the said Life Certificate is not required. But it was subsequently clarified by yet another circular dated 09.10.2018 that even for those Power of Attorney documents registered prior to 01.02.2013, “proof as to Principal is alive” is to be filed.

6. As mentioned earlier, the dispute between the Principal and the Agent is being resolved in the arbitral proceedings. However, the petitioner is also contractually bound to execute the sale deeds in favour of the customers, who have booked the units. It is stated that document Nos.82, 84, 87, 90, 92, 110, 123 and 132 of 2018 are pending before the second respondent/Sub Registrar. The petitioner had requested the Principal to issue a life certificate. But as the Principal is refusing to issue the same because of the arbitration proceedings, the petitioner has approached this Court seeking for the above said relief for directing the second respondent to register the documents without insisting on the life certificate from the Principal.

7. Learned counsel appearing on behalf of the petitioner submitted that before the Arbitrator, who is a retired Judge of this court, the Principal/the third respondent has deposed in person and also signed the cross-examination on 18.09.2018 and admittedly, the Power of Attorney is not cancelled in the manner known to law and the said Power of Attorney dated 08.12.2010 is valid and in force till t