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2024 Supreme(Mad) 957

IN THE HIGH COURT OF JUDICATURE AT MADRAS
THE HON'BLE MR. JUSTICE P.B. BALAJI, J.
Brinda and Ors. - Appellants
Versus
Selvam and Ors. - Respondents
S.A. No.1099 of 2014 and M.P.No.1 of 2014
Decided On : 05-04-2024

Advocates Appeared:
For the Appellants : Mr. V. Raghavachari.
For the Respondents: Mr. S. Parthasarathy, Sr. Counsel for Mr. J. Srinivasa Mohan, Mrs. Chitra Sampath Sr. Counsel for Mr. T.S. Baskaran.

IMPORTANT POINT
A power of attorney that is not coupled with interest ceases to be valid upon the death of the principal, and any sale deeds executed after the principal's death are invalid unless the validity of the power of attorney is established.

Headnote:

POWER OF ATTORNEY - VALIDITY OF SALE DEEDS - Indian Contract Act, 1872 - Section 201, Section 202; Transfer of Property Act, 1882 - Section 54; Indian Evidence Act, 1872 - Section 73 - The court discussed the validity of a power of attorney and its implications upon the death of the principal. It emphasized that a power of attorney not coupled with interest terminates upon the principal's death, referencing Section 201 of the Indian Contract Act. The court also highlighted that the sale deeds executed after the principal's death were invalid, as they were presented for registration knowing the principal was deceased. The interpretation of the power of attorney and related documents was crucial in determining the outcome, leading to the conclusion that the defendants could not establish their claims.

Fact of the Case:

The plaintiffs, parents of Nithyanandam, who died in a motor accident, challenged the validity of sale deeds executed by the first defendant, who was appointed as a power agent by Nithyanandam. The plaintiffs contended that the power of attorney ceased upon Nithyanandam's death, rendering the subsequent sale deeds invalid.

Finding of the Court:

The court found that the power of attorney was not coupled with interest, as it explicitly stated no consideration was received. The sale deeds were executed after Nithyanandam's death, and the defendants failed to prove the genuineness of the documents they relied upon, leading to the conclusion that the sale deeds were invalid.

Issues: 1. Whether the power of attorney was coupled with interest and survived the principal's death? 2. Were the sale deeds executed valid despite being registered after the principal's death? 3. Did the defendants meet the burden of proof regarding the validity of the sale agreement and receipt?

Ratio Decidendi: The court held that a power of attorney not coupled with interest terminates upon the death of the principal, referencing Section 201 of the Indian Contract Act. The sale deeds executed after the principal's death were invalid, as the defendants could not establish the genuineness of the documents they relied upon.

Final Decision: The court set aside the judgments of the lower courts, allowing the Second Appeal and declaring the sale deeds null and void.

JUDGMENT :

P.B. Balaji, J.

This Second Appeal is filed challenging the concurrent findings of the Courts below.

2. The unsuccessful plaintiffs, in a suit for declaration, recovery of possession and injunction are the appellants herein. The parties are described as per their litigative status before the trial court.

3. The material facts that are necessary for deciding the above Second Appeal are as follows:-

4. The plaintiffs are the parents of one Nithyanandam, who died on 25.07.1998 in a motor accident. The first defendant is the son of the second defendant and brother of the third defendant. The said Nithyanandam was originally owning the suit property and he had appointed the first defendant as Power Agent on 31.12.1997. According to the plaintiffs, the power of attorney came to an end with the demise of their son, Nithyanandam. However, the first defendant prepared a sale deed and presented the same for registration on 31.07.1998 after the demise of Nithyanandam and also knowing fully well that Nithyanandam was not alive on that date. The defendants 2 and 3, who had purchased the property through the first defendant, would not get any title to the suit property.

5. Pending the suit, the plaint was amended to include the relief of recovery of possession of the Schedule “A” and Schedule “B” mentioned properties. The suit was therefore filed to declare the sale deeds dated 20.07.1998 in favour of the defendants 2 and 3 as null and void and not binding on the plaintiffs and also to declare that the plaintiffs are the owners of Schedule “A” and Schedule “B” mentioned properties and for recovery of possession of Schedule “A” and Schedule “B” mentioned properties from the defendants and for consequential relief of injunction to restrain the defendants from interfering with the plaintiffs peaceful possession and enjoyment of the suit properties.

6. The first defendant filed a written statement, which is adopted by the defendants 2 and 3. According to the first defendant, the ownership of the properties, at the hands of Nithyanandam, was admitted. The power of attorney, executed in favour of the first defendant, is also admitted. However, according to the first defendant, Nithyanandam had entered into an agreement with the first defendant to sell Schedule “A” and Schedule “B” properties for a total sale consideration of Rs.82,400/- and on the same day, he had appointed the first defendant as power of attorney agent i.e., on 31.12.1997. Further, the first defendant claims that he had paid the entire sale consideration of Rs.82,400/- to Nithyanandam and only because of the same, the said factum of payment of entire sale consideration, Nithyanandam has executed a power of attorney in favour of the first defendant. Thus, according to the first defendant, the said power of attorney was one coupled with interest and therefore, even if the said Nithyanandam was no more, the power of attorney would survive. According to the first defendant, the sale in favour of the defendants 2 and 3 was valid and cannot be called in question by the parents of Nithyanandam, who himself had executed the power of attorney only after receiving the entire sale consideration from the first defendant.

7. According to the first defendant, the power of attorney agent viz., himself, he received Rs.20,000/- from the second defendant on 20.04.1998 and Rs.60,000/- on 18.07.1998 from the second defendant and Rs.2,400/- from the third defendant on 20.07.1998 and in furtherance thereof, he had executed two sale deeds in favour of the defendants 2 and 3. According to the first defendant, the defendants 2 and 3 are in possession of the suit property in their own right and the parents cannot maintain the suit and hence, the suit was sought to be dismissed.

8. The trial Court held that the sale deed was executed on 20.07.1998, on which date, the Nithyanandam was alive and had admittedly executed a power of attorney in favour of the first defendant and therefore,

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