2021 Supreme(P&H) 1611
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ANIL KSHETARPAL, J.
Karanjit Singh – Petitioner
Versus
Jiwan Singh (Deceased) and Others – Respondents
RSA No. 2199 of 2016
Decided On : 16-12-2021
Advocate Appeared:
For the Appellants : G.S. Bajwa, K.S. Kang.
For the Respondents: Prateek Gupta, Nikhil Sabharwal.
The main legal point established is that the principal is bound by the steps taken by the representative once a power is delegated to an agent. The judgment also emphasized the need to read the document in its entirety and the requirement to prove fraud in property disputes.
Headnote:
Power of Attorney - Property Dispute - 20.06.1975 - General power of attorney authorized the appointment of a special power of attorney - Sections 1, 2, 3 of the Power of Attorney Act - The court held that the general power of attorney authorized the appointment of a special power of attorney and empowered the transfer of property through various modes. The court emphasized that once the principal has delegated a power to an agent, the principal is bound by the steps taken by the representative. The judgment also highlighted the need to read the document in its entirety and the requirement to prove fraud in property disputes.
Fact of the Case:
The plaintiff filed a suit to declare a special power of attorney executed by his father as without authority, leading to the sale deed being ignored. The dispute arose from the execution of a general power of attorney in 1975 and subsequent property transactions.
Finding of the Court:
The court found that the general power of attorney authorized the appointment of a special power of attorney and empowered the transfer of property through various modes. It emphasized that the principal is bound by the steps taken by the representative and highlighted the need to read the document in its entirety. The court also noted the requirement to prove fraud in property disputes.
Issues: The issues revolved around the authority of the special power of attorney, the applicability of the general power of attorney to subsequent property transactions, and the requirement to prove fraud in property disputes.
Ratio Decidendi: The key legal principle established is that once the principal has delegated a power to an agent, the principal is bound by the steps taken by the representative. The judgment also emphasized the need to read the document in its entirety and the requirement to prove fraud in property disputes.
Final Decision: The Regular Second Appeal was disposed of, affirming the lower courts' dismissal of the suit. The court found no substance in the appellant's arguments and highlighted the need to prove fraud in property disputes.
JUDGMENT :
ANIL KSHETARPAL, J.
1. The appellant is a plaintiff in a suit filed for grant of decree of declaration that the special power of attorney dated 12.12.1995 executed by his father-defendant No. 1 in favour of his another son (the brother of the plaintiff) is without authority and consequently, the sale deed executed by defendant No. 2 (Ujjagar Singh-the brother of the plaintiff) in favour of defendant No. 3(wife of defendant No. 2), is liable to be ignored. Before proceeding further, it will be appropriate to draw a family tree:
|
| Sewa Singh |
|
| Jiwan Singh (Defendant No. 1) (Son of Sewa Singh) | ||
| Karanjit Singh (Plaintiff-Appellant) (Son of Jiwan Singh) |
| Ujjagar Singh (Son of Jiwan Singh) |
|
| Rajvir Kaur (Defendant No. 3) (Wife of Ujjagar Singh) |
2. The plaintiff, before shifting abroad, executed a general power of attorney on 20.06.1975, in favour of his father Sh. Jiwan Singh. The learned counsel representing the appellant has reproduced the relevant extract of the aforesaid attorney, correctness whereof is not disputed by the learned counsel representing the parties.
3. Hence, the same is extracted as under:
“I, Dr. Karanjit Singh S/o Jiwan Singh s/o Sewa Singh am resident of Machhiwara Tehsil Samrala. Whereas I am of property regarding which disputes keep arising. I am to go to foreign country Belgium for obtaining education and cannot look after and manage etc. my property myself. Because of this I have given my father Jiwan Singh S/o Sewa Singh S/o Dalel Singh resident of Machhiwara Tehsil Samrala general power of attorney on my behalf. It is agreed that General Attorney is authorized to file suits of every type, prosecute them and submit written statements, may appoint any lawyer, enter into compromise, may certify any papers in the suits, take oath or get it taken and submit applications of every type, may submit papers or take them back, give statement of every type, get execution affected, take possession and dispossess tenants, appoint arbitrator or commission, appoint any special attorney, get execution done on my behalf. He may take possession, oust tenants himself or through court and obtain possession, file appeal up-to the last court, prosecute it and file replies on my behalf. He may take loan in my name and may receive amount of every type on my behalf. He may dispose of my property of every type through sale, mortgage, gift, exchange or in any manner he wants, get mutation entered/sanctioned, execute registries and obtain price. Everything done by the general attorney would be acceptable to me.
Dated 20.6.1975.
It was read over to me and after hearing I accept it to be correct.
Sd/-
Karanjit Singh.”
4. Sh. Jiwan Singh purchased a plot in the name of his two sons namely Karanjit Singh (appellant) and Ujjagar Singh(defendant no. 2) in the year 1981. Thereafter, he executed a special power of attorney, on the strength of the general power of attorney executed by the appellant on on 20.06.1975, authorizing Ujjagar Singh to sell half share of the aforesaid plot. Sh. Ujjagar Singh on the basis of that special power of attorney executed a sale deed on 22.12.1995. The plaintiff, on coming to know of the aforesaid sale, has filed the present suit. The defendant No. 2 and 3 contested the suit and pleaded that Jiwan Singh had purchased the property in the name of his two sons and thereafter, the entire property has fallen to their share and therefore, he was authorized to execute the sale deed in the favor of his wife.
5. Both the Courts, on appreciation of evidence, have dismissed the suit.
6. On 19.05.2016, the appeal was admitted while framing the following questions of law:
“Whether the General power of Attorney dated 20.06.1975 Exhibit P-1 executed by the appellant-plaintiff in favour of respondent-defendant No. 1-Jiwan Singh son of Sewa Singh son of Dalel Singh (father of the appellant-p