R. SUBRAMANIAN, R. SAKTHIVEL
K. A. Meeran Mohideen – Appellant
Versus
Sheik Amjad – Respondent
JUDGMENT
R. Subramanian, J.—This appeal is before us on a reference made by a Hon’ble Single Judge of this Court by order dated 24.08.2011, wherein, the Hon’ble Single Judge had referred the following question to be answered by a Larger Bench:
“Whether the General Power of Attorney executed jointly by more than one Principal will survive even after the death of one of the Principals and if so, under what circumstances?”
2. The Hon’ble Judge felt compelled to reserve the question for consideration by a Division Bench since he felt that the law on the point is a little nebulous and it requires a clarification by a Larger Bench of this Court. The statutory provisions which relate to powers of attorney are found in the Indian Contract Act, 1872 and the Powers of Attorney Act, 1882. Chapter X of the Indian Contract Act, 1872, deals with Agency. While Sections 182 to 189 deal with Agency, Sections 190 to 195 deals with Sub-agents. Sections 201 to 210 deal with termination of agency or revocation of authority. One of the circumstances in which the agency gets terminated is when the Principal dies. Section 201 of the Indian Contract Act, 1872, reads as follows:
“201. Termination of age
Termination of power on the death of one of Principals is not automatic.
The survival of a General Power of Attorney after the death of one Principal depends on the intentions of the parties and the specific terms of the power, not automatic termination.
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....
Powers-of-attorney can be revoked either expressly or impliedly, and subsequent appointments are valid if prior holders have knowledge of the changes.
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 main legal point established in the judgment is that an agent with an interest in the subject matter of the agency, as per Section 202 of the Indian Contract Act, cannot have the agency terminate....
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