SC: Original PoA not needed to sell property

 SC: Original PoA not needed to sell property

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Dhananjay.Mahapatra@timesgroup.com

31.01.2022

New Delhi: In a big warning to property owners who intend to sell their assets through a power of attorney (PoA) holder, the Supreme Court has ruled that the PoA holder can sell the property and register the sale by merely producing a copy of the PoA and that the original was not mandatory for registration of the sale.

This means, if the proper ty owner orally cancels the PoA and takes back the original document without entering into a written agreement on cancellation of the PoA, it would still allow the PoA holder to sell the property or land with the help of a copy of the original PoA document.

A bench of Justices K M Joseph and P S Narasima said, “On an analysis of the provisions (of the RegistrationAct), we have no hesitation in r ejecting the argument of the plaintiff that the non-production of the original power of attorney by the second defendant was fatal to a valid registration being effected. ”

In the case in hand, the owner of the property (p laintiff) had entered into an agreement with a person for sale of his land for Rs 55,000 in 1987. As he was transferred out of the place, he executed a PoA for concluding the sale. The sale, however, didn’t materialise. So, he took back the original PoA and told the person that the PoA stood terminated. But the erstwhile PoA holder applied for a copy of the registered PoA and went ahead with the sale for Rs 30,000 to the same defendant, who had earlier agreed to buy it for Rs 55,000. 

He went to the Registrar’s office and got the sale registered with a copy of the PoA. The Himachal Pradesh high court cancelled the registration of the sale saying nonproduction of original PoA document was fatal to the sale and restored the property to the owner.

The SC set aside the HC order and said the registration was valid as oral cancellation of PoA has no validity before the law and that for registration of sale of land, the PoA holder merely is required to produce a copy of the document and that original was not necessary.

Justi ce Joseph said, “Section 35 of the Registration Act gives authority to the registering authority to satisfyh imself that the persons appearing before him are the persons they represent to be. . . the aforesaid provision deals w ith situations in which the registering authority refuses the registration. If the registering authority is satisfied about the identity of the person. . . , it may not be part of the Registrar’s duty to enquire further. ”