A General Power of Attorney can be revoked unless coupled with interest, and unilateral cancellation by the principal is permissible if the agency lacks such interest.

ORDER :

1. The present writ petition has been filed impugning the order dated 24.04.2024 whereby the Sub-Registrar, Gandhinagar, 3^rd and 4^th Annexe Building, Bengaluru DC Office Compound, Bengaluru, has registered the deed of cancellation of General Power of Attorney issued by the 5^th respondent in favour of the petitioner in respect of the Housing Complex - Nitesh Columbia Square. Learned counsel for the petitioner submits that 5^th respondent was not entitled to revoke the General Power of Attorney dated 30.09.2009 executed in favour of the petitioner in pursuance to the Joint Development Agreement of the same date in respect of the land measuring 4 Acres 14 Guntas situated at Kattigenahalli Village, Jala Hobli, Bengaluru North Additional Taluk, Bengaluru. The Joint Development Agreement dated 30.09.2009 between the petitioner and the fifth respondent was for development of the 5^th respondent's land in Sy. No. 174/4 measuring 22 Guntas and Sy.No.175/2 measuring 3 acres 32 Guntas, in all, 4 Acres 14 Guntas.

2. Under the Joint Development Agreement, the 5^th respondent was required to execute a Power of Attorney to enable the developer to apply for and secure plans and licences and for other purposes connected with the development and sale of the scheduled property. It was further provided that the General Power of Attorney would be in force and be irrevocable during the term of the agreement and until the proposed development of the project and conveyance/sales are completed.

3. The Power of Attorney executed by the 5^th respondent, the owner of the land in favour of the builder/developer, specifically provided as under: "24. It is clarified that the power/authority to execute and register sale deeds and/or execute any document having the effect of transferring any registered titles in respect of any portion of the Schedule Property shall be exercised by the Developers only after the issuance of a Project Completion Certificate by the Project Architect and delivery of a copy thereof to me."

4. It appears that there have been serious disputes in respect of the execution of the Joint Development Agreement for construction of the Housing Project known as 'Nitesh Columbia Square' and the parties have gone into arbitration and arbitration award has been passed. The said arbitration award was challenged by the petitioner/builder under Section 34 of the Arbitration and Conciliation Act, 1996, which came to be dismissed. Against the dismissal of petition, the petitioner/builder has filed appeal under Section 37 of the Act of 1996 which is pending before this Court.

5. It is also not in dispute that the Project has not yet been completed and Completion Certificate has not been issued. It is the case of the 5^th respondent, the owner, that the petitioner on the strength of the Power of Attorney in violation of the terms and conditions of the General Power of Attorney was executing the sale deeds of the flats and therefore, the owner has cancelled the Power of Attorney which has been registered in the office of the Sub-Registrar.

6. Section 201 of the Indian Contract Act, 1872 (hereinafter referred to as 'the Contract Act') provides for termination of agency. Under , an agency gets terminated by the principal revoking his authority, or by the agent renouncing the business of the agency. Besides these two situations, other situations are also provided under where an agency gets terminated. of the Contract Act reads as under:-

"201. Termination of agency.— An agency is terminated by the principal revoking his authority, or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors."

7. Thus, if the principal revokes his authority being conferred in favour of an agent, the agency th