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2025 Supreme(Online)(SC) 1105

SUPREME COURT OF INDIA
J.B. PARDIWALA, J
M. S. ANANTHAMURTHY – Appellant
Versus
J. MANJULA – Respondent
CIVIL APPEAL NOS. 3266-3267 OF 2025 | SPECIAL LEAVE PETITION (C) NOS. 13618-13619 OF 2020



Advocates:
For the Appellants/Petitioners: Ms. Farhat Jahan Rehmani
For the Respondents: Mr. Mahesh Thakur

A power of attorney ceases upon the death of the principal, and an agreement to sell immovable property must be registered to convey valid ownership.

Headnote:(A) Registration Act, 1908 - Sections 17 and 49 - Indian Contract Act, 1872 - Section 201 and 202 - Validity of power of attorney - Dispute regarding property ownership after the death of the original owner - Appellants contend that general power of attorney was irrevocable and coupled with interest - High Court affirms trial court’s ruling that power of attorney lapses on death of the principal, rendering subsequent transfers invalid - Court rules agreement to sell does not convey title unless registered under law - Conclusion that the sale deed executed post-death of the principal is also invalid. (Paras 57-64)

(B) Property Law - Transfer of immovable property - Sale can only occur through a registered deed; agreement to sell does not confer ownership or title - Valid ownership requires proper registration as per the defined laws. (Paras 17-48)

Facts of the case:
The appellants sought ownership claims over property following a general power of attorney and an agreement to sell executed by the original owner in favour of the holder, challenged by subsequent purchasers and their successors. The original owner died prior to the execution of a registered sale deed in favour of the appellants.

Findings of Court:
The trial court and the High Court confirmed that no legitimate title was established by the appellants due to the invalidity of the power of attorney post-principal's death and usage of unregistered documents for the transfer of property.

Issues: The core issues involved the authority of the general power of attorney post-death of the principal and whether the subsequent sale conclusion met legal requirements for a valid conveyance.

Ratio Decidendi: The Court robustly maintained the principle that a sale of immovable property mandates registration and that a general power of attorney lapses with the demise of the principal, reaffirming that neither an agreement to sell nor an unregistered power of attorney conveys legal title.

Result: Appeals dismissed.

Judgement Key Points

Certainly. Based on the provided legal document, the key points are as follows:

  1. A general power of attorney (POA) ceases to be valid upon the death of the principal, and any transfer of immovable property must be executed through a registered deed to be legally effective (!) (!) .

  2. An agreement to sell, without registration, does not confer ownership or title over immovable property; only a registered sale deed can transfer valid ownership (!) (!) .

  3. The validity of a POA that is coupled with interest and is purported to be irrevocable depends on whether it was created for securing an interest of the agent. In this case, the Court found that the POA was not coupled with such interest and was not expressly stated to be irrevocable (!) (!) (!) .

  4. The execution of a sale deed after the death of the principal, by a holder of a POA not coupled with interest, is invalid because the authority to act terminates upon the principal's death (!) (!) (!) .

  5. The law mandates that transfer of immovable property exceeding a certain value must be registered; unregistered documents, such as agreements to sell or POAs not registered, do not create or transfer title (!) (!) (!) .

  6. A POA, especially one labeled as "general," does not automatically confer interest or rights in the property unless explicitly coupled with interest or security. Mere mention of the word ‘irrevocable’ does not make it so unless the document indicates an interest of the agent in the property (!) (!) (!) (!) .

  7. The court emphasized the importance of registration to ensure transparency, prevent fraud, and establish clear title. Non-registration of a document that is required to be registered renders it inadmissible as evidence of transfer or interest in the property (!) (!) (!) (!) .

  8. The Court reaffirmed that only a registered conveyance can transfer valid ownership rights over immovable property. Documents such as agreements to sell or POAs, unless registered, do not pass title or create interest in the property (!) (!) .

  9. The legal position is that a person cannot transfer more rights than they possess; thus, a holder of a POA who does not have ownership rights cannot pass valid title to another party (!) (!) .

  10. The Court upheld that a suit for injunction, where the question of title is directly and substantially in issue, can involve findings on ownership. However, such findings are only binding if they are necessary for the decision on the injunction and are based on proper pleadings and issues (!) (!) .

  11. The importance of registration and the legal requirement that transfer of immovable property must be through a registered deed were reinforced, emphasizing that unregistered documents are not sufficient to establish or transfer ownership rights (!) (!) .

  12. The Court dismissed the appeals, concluding that the lower courts' judgments were correct in holding that the transfers made through unregistered documents and the sale deed executed after the principal's death were invalid, reaffirming the principle that only registered conveyances confer valid title (!) (!) .

These points collectively highlight the legal principles that govern the validity of powers of attorney, the necessity of registration for transfer of property, and the effect of the death of a principal on the authority of agents or POA holders.


Table of Content
1. ownership and transaction history of suit property (Para 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. trial court's findings and reasoning (Para 12 , 13 , 14 , 19 , 20)
3. interpretation of power of attorney and its implications (Para 16 , 17 , 18 , 22)
4. agency principles and irrevocability of power of attorney (Para 26 , 28 , 32 , 49 , 53)
5. final dismissal of appeals (Para 63 , 64)

1. Leave granted.

2. Since the issues raised in both the captioned appeals are the same, the parties are also same and the challenge is also the self-same, hence those were taken up analogously and are being disposed of by this common judgment and order.

3. These appeals have been filed before this Court from the judgment and order passed by the High Court of Karnataka at Bengaluru dated 16.10.2019 in R.F.A. No. 1318/2014 c/w R.F.A. No. 1317/2014 (“impugned judgment”) whereby the High Court dismissed the appeals and affirmed the common judgment and decree dated 21.06.2014 passed in O.S. No. 133/2007 and O.S. No. 4045/2008 by the Court of VIII Additional City Civil & Sessions Judge at Bengaluru City.

A. FACTUAL MATRIX

4. The description of the parties before this Court, the High Court and before the Trial Court is tabulated as follows:-

BEFORE THIS COURTBEFORE THE HIGH COURTBEFORE THE TRIAL COURTREMARKS
Muniyappa--Original Owner
A. Saraswathi--Holder of POA
AppellantsPetitionersPlaintiff in O.S. No. 4045/2008Defendant in suit instituted by the respondent no. 9
Respondent Nos. 1-6Respondent Nos. 1-6Defendant Nos. 1-6Legal heirs of original owner
Respondent No. 7Respondent No. 7Defendant No. 7Purchaser
Respondent No. 8Respondent Nos. 8-10Defendant No. 8Purchaser
Respondent No. 9/Answering RespondentRespondent No. 11Plaintiff in O.S. No. 133/2007Defendant no. 9 in suit instituted by the appellants/Gift Deed Holder

Appellant no. 2 was represented by his general power of attorney holder i.e., appellant no. 1, for the purposes of the appeal before the High Court and this Court.

5. The dispute arises from a common claim put forward by the appellants and the answering respondent on property bearing Site No. 10, out of Sy. No. 55/1, situated at Chunchaghatta Village, Uttarahalli Hobli, Bangalore South Taluk (hereinafter referred to as “Suit Property”). The Suit Property originally formed part of 1 acre 8 guntas of land situated in Chunchaghatta Village, Uttarahalli Hobli, Bangalore South Taluka within the revenue limits of Konanakunte Gram Panchayat owned by late Muniyappa @ Ruttappa (hereinafter referred to as “original owner”). The original owner developed the said land in the form of individual plots and sold those plots for consideration to various person. The Suit Property is one of those plots.

6. It is the case of the appellants that on 04.04.1986, the Suit Property was sold by the original owner one A. Saraswathi (hereinafter referred to as “holder”) for total sale consideration of Rs.10, 250/- by executing an irrevocable power of attorney (hereinafter referred to as “POA”) and an unregistered agreement to sell. The contents of the said POA and agreement to sell are extracted hereinbelow:-

“GENERAL POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS THAT, I,

Muniyappa urf Ruttappa Son of Ragallappa, Major, residing at Vajarahalli village, Uttarahalli Hobli, Bangalore South Taluk do hereby appoint, nominate and constitute Smt. A. Saraswathi W/O M. S. Anantha Murthy, residing at No. 155, 5th Cross, Wilsongarden, Bangalore - 560 027 as my General Power of Attorney holder to do the following acts, deeds and things on my behalf that is to say:

1) To look after, maintain, manage the Schedule Property in the best manner as my attorney deems fit.

2) To enter into any type of agreements in respect of the Schedule property with any person for any amount, receive advance amount, issue proper receipts, apply to the competent authority seeking permission to execute any type of deeds, in favour of any persons, and to execute such deeds in favour of such persons, receive full consi

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