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2016 Supreme(All) 64

ALLAHABAD HIGH COURT
(Lucknow Bench)
(Full Bench)
BEFORE : DR. DHANANJAYA YESHWANT CHANDRACHUD, C.J., DEVENDRA KUMAR UPADHYAYA AND RAJAN ROY, JJ.
SYED WASIF HUSAIN RIZVI ...Petitioner
Versus
HASAN RAZA KHAN AND OTHERS ....Respondents
(Civil Misc. Writ Petition (Consolidation) No. 534 of 2002, decided on 22nd January, 2016)

Advocates:
Counsel :
S.H.I. Naqvi, R.K. Upadhyaya, R.S. Chauhan and Zishan Ahmad for the Petitioner; C.S.C., Ajmal Khan, G.M. Kamil, Mohd Aslam Khan, R.N. Gupta, S.K. Shukla, Sanjay Bhaseen and Vivek Kumar Shukla for the Respondents.

Headnote:Constitution of India, 1950 – Article 226 – Powers of Attorney Act, 1882 – Sections 1-A and 2 – Writ Petition – Power of Attorney – Right to file – Whether a writ petition under Article 226 be filed by a power of attorney holder – Holder of the power of attorney represents the donor and does not act in his personal capacity – A recognised agent includes a person who holds the power of attorney – Petition which is instituted under Article 226 is not by power of attorney holder independently for himself but as an agent acting for and on behalf of the principal in whose name the writ proceedings are instituted before the Court – Donee must be confined to those acts which he is authorised by the power of attorney to discharge – Writ petition can be filed by a power of attorney. [Paras 13 to 27]

       Result; Reference Answered Accordingly.

JUDGMENT

Hon’ble Dr. Dhananjaya Yeshwant Chandrachud, C.J.—This reference to the Full Bench has been occasioned by a referring order of a learned Single Judge dated 2 December 2015. The issue which has been referred for adjudication by the Full Bench is as follows:

“Whether a writ petition under Article 226 of the Constitution can be filed by a power of attorney holder.”

The meaning of a power of attorney

2. The Powers-of-Attorney Act, 1882 (Act) was enacted to amend the law relating to powers of attorney. Section 1-A of the Act provides that a power of attorney includes any instrument empowering a specified person to act for and in the name of the person executing it. Section 2 stipulates that the donee of a power of attorney may, if he thinks fit, execute or do any instrument or thing in and with his own name and signature, by the authority of the donor of the power, and every instrument or thing so executed and done shall be as effectual in law as if it had been executed or done by the donee of the power in the name and with the signature and seal of the donor thereof.

3. The true meaning of a power of attorney finds elaboration in a judgment of the Supreme Court in State of Rajasthan v. Basant Nahata, (2005) 12 SCC 77, where the Supreme Court held as follows:

“13. A grant of power of attorney is essentially governed by Chapter X of the Contract Act. By reason of a deed of power of attorney, an agent is formally appointed to act for the principal in one transaction or a series of transactions or to manage the affairs of the principal generally conferring necessary authority upon another person. A deed of power of attorney is executed by the principal in favour of the agent. The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed, the same shall be read as if done by the donor. A power of attorney is, as is well-known, a document of convenience.

* * *

52. Execution of a power of attorney in terms of the provisions of the Contract Act as also the Powers-of-Attorney Act is valid. A power of attorney, we have noticed herein before, is executed by the donor so as to enable the donee to act on his behalf. Except in cases where power of attorney is coupled with interest, it is revocable. The donee in exercise of his power under such power of attorney only acts in place of the donor subject of course to the powers granted to him by reason thereof. He cannot use the power of attorney for his own benefit. He acts in a fiduciary capacity. Any act of infidelity or breach of trust is a matter between the donor and the donee.”

4. In a subsequent decision of the Supreme Court in Suraj Lamp & Industries (P) Ltd. v. State of Haryana, (2012) 1 SCC 656, the earlier decision, noted above, was followed by a Bench of three learned judges. The Supreme Court held thus:

“A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. The power of attorney is creation of an agency whereby the grantor authorizes the grantee to do the acts specified therein, on behalf of grantor, which when executed will be binding on the grantor as if done by him (see Section 1-A and Section 2 of the Powers of Attorney Act, 1882). It is revocable or terminable at any time unless it is made irrevocable in a manner known to law. Even an irrevocable attorney does not have the effect of transferring title to the grantee.” (Para 20 at page 666).

5. In a more recent decent decision, while elucidating the scope of Section 138 of the Negotiable Instruments Act 1881, a Bench of three learned Judges of the Supreme Court in A.C. Narayanan v. State of Maharashtra, AIR 2014 SC 630, observed thus:

“The power of attorney holder is the agent of the grantor. When the grantor authorises the attorney holder to initiate legal proceedings and the attorney holder accordingly initiates such legal proceedings, he does so as the agent of the grantor an













































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