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2016 Supreme(All) 3546

ALLAHABAD HIGH COURT
Pramod Kumar Srivastava, J.
Daya Shanker (Since Deceased) and 14 Ors. - Appellant
Versus
Rajendra Kumar and 12 Ors. - Respondent
Second Appeal No. 374 of 2016
Decided On : 30-05-2016

Advocates Appeared:
For the Appellant :- C.K. Parekh, Advocate.
For the Respondent:- Vinod Kumar Dwivedi and Rahul Pandey, Advocates.

A registered power of attorney can only be cancelled by a registered deed.

Headnote:

Indian Registration Act - Sections 32, 33 - The court examined the provisions of the Indian Registration Act and held that a registered document can only be cancelled by a registered deed. The court concluded that the sale-deed executed by the power of attorney holder was valid and not liable to be cancelled.

Fact of the Case:

The plaintiff filed a suit for cancellation of a sale-deed executed by the defendant based on a registered power of attorney. The trial court decreed the suit, but the first appellate court allowed the appeal and dismissed the suit. The plaintiffs filed a second appeal against the judgment of the first appellate court.

Finding of the Court:

The second appellate court examined the legal provisions, including Sections 32 and 33 of the Indian Registration Act, and held that a registered document can only be cancelled by a registered deed. The court also found that the service of notice under certificate of posting and registered notice was not legally proved. The court concluded that the sale-deed executed by the power of attorney holder was valid and not liable to be cancelled.

Ratio Decidendi: The court held that a registered power of attorney can only be cancelled by a registered deed. The sale-deed executed under the authority of the registered power of attorney was valid and not liable to be cancelled.

Result: The second appeal was dismissed.

Judgement Key Points

Certainly. Based on the provided legal document, here are the key points summarized:

  1. A registered power of attorney can only be canceled through a registered deed. The court emphasized that cancellation by unregistered documents or notices, such as notices under certificate of posting, is not legally sufficient to revoke a registered power of attorney (!) (!) .

  2. The sale-deed executed by the power of attorney holder was found to be valid, as the authority under the registered power of attorney was never legally canceled or withdrawn before the execution of the sale-deed (!) (!) .

  3. The burden of proof regarding cancellation of the power of attorney and the validity of the sale-deed lies with the party asserting such cancellation. The court held that the plaintiff failed to prove that the power of attorney had been canceled before the sale-deed was executed (!) (!) .

  4. Service of notice for cancellation via registered post or certificate of posting was not conclusively proved, and thus, cannot be deemed legally effective to cancel the power of attorney (!) .

  5. The court reaffirmed that a registered document affecting rights in immovable property can only be canceled by a registered deed, and not by unregistered notices or other informal means (!) .

  6. The appellate courts correctly appreciated the evidence and legal provisions, and their findings that the sale-deed was executed under valid authority and that the power of attorney was not canceled are well-founded and cannot be disturbed in a second appeal (!) (!) .

  7. The appeal was dismissed, affirming that the sale-deed executed under the authority of a valid, uncancelled registered power of attorney remains legally effective and binding (!) .

Please let me know if you need further assistance or specific legal interpretations.


JUDGMENT

Pramod Kumar Srivastava, J. –

Heard learned counsel for the parties and perused the records.

2. It is admitted case between the parties that plaintiff no.-1 had executed a registered general power of attorney (GPA) dated 9.2.1988 of his property in favour of defendant no.-1 Jitendra Kumar (son of Laxman Prasad). Then defendant no.-1 had executed sale-deed of disputed property on the basis of said power of attorney in favour of defendants no. 2, 3 and 4. Admittedly, defendants no. 2 and 3 are sons of Laxman Prasad and real brother of defendant no.-1 Jitendra Kumar. It is also admitted that defendant no.-4 Sharda Dutt is real father-in-law of defendant no.-1 Jitendra Kumar. It is also admitted that on the basis of power of attorney, the sale-deed was executed on 3.8.1991, but it was not registered that day, and its registration proceeding was performed and completed on 26.2.1992. It is proved from the evidences, although it was not admitted by defendants, that plaintiff has sent registered notice dated 3.10.1991 to defendant no.-1 for cancellation of registered power of attorney, which was served on him.

3. Plaintiffs had filed suit for cancellation of sale-deed dated 3.8.1991 executed by defendant no.-1 (the power of attorney holder) in favour of defendants no. 2, 3 and 4 on the ground that this was executed without authority and without any consideration, as a result of conspiracy committed by defendant no.-1 with his brothers defendants no. 2 and 3 and father-in-law defendant no.-4. This ground was also taken that this sale-deed was executed without any bona fide or good faith, and was got executed for prejudicing the rights of plaintiff and defendant no.-5 over disputed property.

4. After affording opportunity of hearing to parties and accepting their evidences, the Court of Civil Judge (Senior Division), Fatehpur had passed judgment dated 7.2.2009, by which original suit was decreed and sale-deed dated 3.8.1991, registered on 26.2.1992, was cancelled. In this judgment, trial court had given finding to the effect that plaintiff had sent first notice of cancellation of sale-deed by post under certificate of posting dated 8.7.1991 and held that sending of this notice under certificate of posting is proof of its service on defendant no.-1. Trial court had also given finding that after service of notice of cancellation of power of attorney, the sale-deed in question was executed, therefore it is liable to be cancelled, as defendant no.-1 had no right to execute sale-deed after such knowledge of power of attorney.

5. Against the judgment of trial court, Civil Appeal No.-10/2009 was preferred, which was heard and allowed by the judgment dated 7.11.2015 of Additional District Judge, Court No.-9, Fatehpur. In this judgment, first appellate court had held that registered document can be cancelled in accordance with law by registered deed only. It was also held that service of notice under certificate of posting dated 8.7.1991 and registered notice dated 9.10.1991 is legally not proved. First appellate court also held that in power of attorney, plaintiff no.-1 had authorised power of attorney holder defendant no.-1 to execute sale-deed, gift deed, mortgage deed or other transfer deed of disputed property and got it registered and received payment. With these findings first appellate court had held that till execution of sale-deed in question, the power of attorney executed by plaintiff no.-1 in favour of defendant no. 1 was not cancelled, and the power of attorney holder (defendant no.-1) had executed sale-deed in question under authority obtained from the owner of property that is plaintiff no.-1. Therefore, said grounds for cancellation of sale-deed are not proved. On the basis of these findings, first appellate court had allowed the appeal and dismissed the original suit.

6. Aggrieved by the impugned judgment of first appellate court, present second appeal has been preferred by plaintiffs of the original suit.

7. Learned counsel f















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