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2025 Supreme(Online)(Mad) 66889

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mrs. S. Srimathy, J
G.Gunasekaran – Appellant
Versus
V.R.Rajendran – Respondent
A.S(MD)No.41 of 2018 | C.M.P(MD)No. 2155 of 2018 | O.S.No. 48 of 2009



Advocates:
For the Appellants/Petitioners: Mr.H. Lakshmi Shankar
For the Respondents:Mr.J. Lawrance, for R-1, Mr.K.R.Manimaran, for R-2, Mr.Thiraviam, Government Advocate, for R-3 & R-4

Implied revocation of a power of attorney can be established through subsequent actions by the principal, invalidating unauthorized transactions made by the agent.

Headnote:(A) Civil Procedure Code, 1908 - Section 96 - Indian Contract Act, 1872 - Section 207 - Power of attorney - Cancellation and implied revocation of power of attorney were established through subsequent actions of the plaintiffs, including the appointment of a new power of attorney and execution of sale deeds, which reaffirmed the legitimacy of the plaintiffs' claims over the properties involved, invalidating the sale deed executed by the first defendant to the second defendant. (Paras 4.ii, 6, 14, 15, 24)

(B) Jurisdiction - The authority of the registration officials was questioned as going beyond their jurisdiction regarding the cancellation of the power of attorney and subsequent illegal sale. (Paras 8, 12, 22)

(C) Admissibility of evidence - The court ruled that the defendants could not rely on unpleaded evidence and that the trial erroneous wouldn’t consider defendants’ acknowledgments due to lack of specific denial in written statements. (Paras 6, 19, 20)

(D) Legal effect of documents - Sale deed dated 23.03.2009 deemed void ab initio as no power existed post-revocation; registration of such document must reflect the legal realities. (Paras 15, 17, 18) (E) Ex-parte conduct - The first defendant's refusal to participate was held against him, noting collusion with the second defendant against the interests of the plaintiffs. (Paras 23, 24)

Table of Content
1. overview of appeal and parties involved (Para 1 , 2 , 3 , 4)
2. defendants' written statements and claims (Para 5 , 6 , 7)
3. trial court's issues for consideration (Para 8)
4. plaintiffs' burden of proof on revocation of powers (Para 10 , 11 , 12 , 13)
5. implications of implied revocation under indian law (Para 14 , 15)
6. determination of legality of sale deed (Para 16 , 17 , 18)
7. non-joinder and evidentiary insufficiencies (Para 19 , 20 , 21)
8. validity of notice and jurisdiction issues (Para 22 , 23)
9. court's final judgment and order (Para 24)

JUDGMENT

The present appeal suit is filed by the plaintiffs against the Judgment and Decree dated 11.07.2016 passed in O.S.No.48 of 2009 on the file of Additional District Judge, Dindigul.

2. The plaintiffs in the suit are the appellants herein and the defendants are the respondents herein. For the sake of convenience, the parties shall be referred to as plaintiffs and defendants.

3. The suit in O.S. No. 48 of 2009 was filed seeking a preliminary decree against the 1st defendant for rendition of accounts for functioning as the power of attorney of the plaintiffs till 16.07.2008 and to hold enquiry to determine the actual amount due to the plaintiffs from the 1st defendant including the difference between the actual sale price and the market value and to pass final decree. To declare that the proceedings of the 4th respondent dated 25.05.2009 in No.3436/A1/2009 are null and void and beyond jurisdiction and consequential permanent injunction restraining respondents 3 and 4 from registering any sale deed relating to suit A and B schedule properties. To declare the sale deed dated 23.03.2009 executed by the 1st defendant in favour of 2nd defendant is not valid and not binding on the plaintiffs, decree for mandatory injunction directing the 1st defendant to hand over to the 1st plaintiff the original title documents Doc. No. 817 of 1990 dated 24.09.1990 and Document No. 818 of 1990 to the 2nd plaintiff and costs.

4.(i) The brief facts as stated in the plaint is that the plaintiffs had purchased the suit properties in two registered sale deed dated 24.09.1990 separately in each plaintiff's name. The first two survey numbers are covered under the sale deed of the 1st plaintiff and all other survey numbers are covered under the sale deed of the 2nd plaintiff. The 1st and 2nd plaintiff are in-laws and related. Since the 1st plaintiff through his father had some experience in the real estate business the 2nd plaintiff gave power of attorney to the 1st plaintiff in respect of his purchased properties and the 1st plaintiff combined the properties and formed layout namely “Aathi Kamatchi Nagar” which is approved by the Director of Town Planning and also Chinnalapatti Town Panchayat dated 24.11.1999. The 1st plaintiff had sold many plots as power of attorney of the 2nd plaintiff during the month of November and December 1999. Since the 1st plaintiff was also having business activities in Chennai and had been frequently travelling, he gave power of attorney to the 1st defendant on 02.12.1999 for selling the house plots. The 1st defendant has been a close associate of the 1st plaintiff's father hence the 1st plaintiff had trust on him and reposted great confidence on him. The plaintiffs have decided to entrust the sale of plots belonging to both to one person hence the power of attorney in favour of the 1st plaintiff was cancelled by the 2nd plaintiff in turn given to 1st defendant on 25.02.2001. The original title documents were entrusted to the 1st defendant at that time itself so as to be available readily for perusal and examination by the intending purchasers. The 1st defendant has maintained two accounts and furnished the same as and when demanded by the plaintiffs.

4.(ii) Thereafter, for many years till 2008, whenever the 1st plaintiff came over to Dindigul and met the 1st defendant enquired about the sale of plots, the 1st defendant would reply no plots could be sold for profitabl

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