IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Anil Kshetarpal, J.
Pardeep Chaudhary & Anr. – Appellants
Versus
Birwati & Ors. – Respondents
RSA No. 799 of 2019 (O&M)
Decided On : 29-04-2022
General Power of Attorney - Property Dispute - Haryana Urban (control of Rent and Eviction) Act, 1973 - Section 202, Section 208 of the Indian Contract Act, 1872 - Section 53-A of the Transfer of Property Act, 1882 - [SUMMARY OF ACTS AND SECTIONS REFERENCED] - The court analyzed the General Power of Attorney executed in favor of late Sh. Prem Singh and subsequent sale deeds, interpreting Section 202 and Section 208 of the Indian Contract Act, 1872. The court held that the General Power of Attorney could not be terminated to the prejudice of the interest of the agent, and the subsequent sale deed executed in favor of late Sh. Prem Singh's children was in continuity with the previous contract of agency, giving superiority to the rights of the children. The court also discussed the requirement of a registered sale deed under Section 17 of the Registration Act, 1908, and the judgment passed in Suraj Lamp and Industries Pvt. Ltd vs. State of Haryana and another (2012) 1 SCC 656, to establish the legal framework applied in reaching its decision.
Fact of the Case:
The case involved a property dispute arising from the execution of a General Power of Attorney in favor of late Sh. Prem Singh and subsequent sale deeds. The court analyzed the inter-se relationship between the parties and the validity of the transactions.
Finding of the Court:
The court found that the General Power of Attorney could not be terminated to the prejudice of the interest of the agent, and the subsequent sale deed executed in favor of late Sh. Prem Singh's children was in continuity with the previous contract of agency, giving superiority to the rights of the children. The court also found that Smt. Birwati was neither the owner nor the landlord of the suit property.
Issues: The issues included the validity of the General Power of Attorney, the subsequent sale deed, the rights of the parties, and the ownership of the suit property.
Ratio Decidendi: The court applied Section 202 and Section 208 of the Indian Contract Act, 1872, and Section 53-A of the Transfer of Property Act, 1882, to establish that the General Power of Attorney could not be terminated to the prejudice of the interest of the agent, and the subsequent sale deed was in continuity with the previous contract of agency, giving superiority to the rights of the children.
Final Decision: The court allowed the appeals, set aside the judgments and decrees passed by the courts below, decreed the suit filed by Sh. Pardeep Chaudhary and Smt. Sheetal, and dismissed the suit filed by Smt. Birwati. The civil revision petition filed by Shri Chand was allowed.
JUDGMENT
Anil Kshetarpal, J. - Through this judgment, two Regular Second Appeals arising from a common judgment passed by the trial Court as well as the First Appellate Court while deciding two cross-suits and a Civil Revision petition arising from proceedings under the Haryana Urban (control of Rent and Eviction) Act, 1973, shall stand disposed of. The above Civil revision petition is an offshoot of the dispute in the Regular Second Appeals. The learned counsels representing the parties at ad-idem that all these cases can conveniently be decided together.
2. In the considered opinion of the Bench, the question which arises for consideration is:-
'If an allottee of the house, on receipt of the entire sale consideration, delivers possession to an agent while executing a registered General Power of Attorney in his favour, then whether, a subsequent sale deed executed by him in favour of agent's children after agent's death would be in continuity with the previous contract of agency so as to give superiority to the rights of the children?
3. In order to understand the inter-se relationship between the parties, it is appropriate to draw a small pedigree table:-
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| Jeet Singh Chaudhary |
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| Prem Singh | Roop Singh | |||
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| Veena Chaudhary | Beerwati | |||
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| Sheetal | Pardeep | |||
4. One suit was filed by Smt. Sheetal and Sh. Pardeep Chaudhary, children of Late Sh. Prem Singh with a prayer to grant decree of declaration with consequential relief of permanent mandatory injunction. They claim to be joint owners in possession of House No.176, Sector 10, Faridabad, on the basis of a registered sale deed dated 29.09.2010, executed by Sh. J.S.Luthra (the original allottee). It is their case that on 11.06.1980, Sh. J.S.Luthra executed a General Power of Attorney in favour of their father late Sh. Prem Singh with respect to the suit property and delivered its possession. Thereafter, late Sh. Prem Singh has been depositing the installments and house tax and a conveyance deed was registered by the Housing Board in favour of Sh. J.S.Luthra on 25.09.2000 through late Sh. Prem Singh in which Sh. Roop Singh was the witness. A non-encumbrance certificate was also issued by the Housing Board (allotting agency) in favour of late Sh. Prem Singh. It is claimed that the defendants were permitted to reside on the first floor as licencees which was terminated vide notice dated 13.10.2010. Sh. J.S.Luthra wrongly executed a General Power of Attorney in favour of Sh. Roop Singh with respect to the property in question on 23.01.2001 and on that basis, Sh. Roop singh has executed a sale deed in favour of Smt. Birwati (his wife) on 23.02.2010. They claimed that such General Power of Attorney and the sale deed are fraudulent.
5. In a joint written statement filed by Sh. Roop Singh and Smt. Birwati, the defendants claim that they have filed a previous suit. They claim that the property was allotted to Sh. J.S.Luthra on 13.05.1980 and he executed a General Power of Attorney in favour of late Sh. Prem Singh. Thereafter, a conveyance deed of the property in question was registered on 25.09.2001 in favour of Sh. J.S.Luthra through late Sh. Prem Singh. Thereafter, Sh. J.S.Luthra executed a General Power of Attorney in favour of Sh. Roop Singh on 23.01.2001 and Sh. Roop Singh, on the strength of the aforesaid attorney, executed a registered sale deed on 23.02.2010 in favour of Smt. Birwati for a total consideration of Rs.18,00,000/-. The Power of Attorney in favour of late Sh. Prem Singh was cancelled on 23.01.2001. The defendants, thus, claim that they are owners in possession of the property and the licence in favour of the plaintiffs, namely Smt Sheetal and Sh. Pardeep Chaudhary stands terminated and thus, they are liable to be evict
Jeet Kumari vs. Girdhari Lal 2003(3) RCR(Civ) 391
Seth Loon Karan Sethiya vs. Ivan E. John and others
Suraj Lamp and Industries Pvt. Ltd vs. State of Haryana and another (2012) 1 SCC 656
AI
An agent must act in the principal's best interests; unauthorized sales executed under a power of attorney without consent are fraudulent.
The agency created in favor of the defendant continued to remain in force even after the death of the principal, and the registered documents carry a presumption that they were genuinely executed.
The validity of a power of attorney post-principal's death remains contingent on whether it is coupled with interest, impacting the necessity of parties in litigation.
Civil Procedure Code, 1908 – Order 21 Rules 97, 98 and 101 – Execution of decree – Mutation entry in revenue records does not create title nor has any presumptive value on title, but only enables the....
The main legal point established in the judgment is that the power of attorney holder has the right to exercise the power given in the power of attorney but cannot use such power for personal benefit....
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 th....
Contracts involving minors are voidable, and agreements lacking informed consent due to undue influence or coercion are rendered invalid.
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