Registration Act Does Not Contemplate Inquiry Into Whether PoA Holder Who Executed Document Had Valid Power Of Attorney: Supreme Court

The Supreme Court observed that the production of the original power of attorney is not necessary, if the document is presented for registration by the power of attorney holder who executed the document on the strength of it."The inquiry contemplated under the Registration Act, cannot extend to question as to whether the person who executed the document in his capacity of the power of attorney holder of the principal, was indeed having a valid power of attorney or not to execute the document or not", the bench comprising Justices KM Joseph and PS Narasimha observed in a judgment delivered last week.In this case, the plaintiff filed a suit for declaration that he is the owner in possession of that property and the mutation showing the sale in favour of the first defendant, by the second defendant, was null and void, and that the second defendant was not having any authority to sell the land owned by the plaintiff, and hence the defendant be restrained from interfering with the ownership and possession of the plaintiff. According to the plaintiff, he had bonafide executed a special power of attorney in favour of the 2nd defendant for selling the property for the amount of Rs. 55,000/-. As the negotiation fell through in view of the first defendant not being able to arrange the money, the second defendant to whom the power of attorney was executed, surrendered the original to the plaintiff, and the plaintiff told the first defendant that the same stood cancelled. Thus the second defendant, according to the plaintiff, could not execute the sale deed in the absence of the original power of attorney, and the sub-registrar was supposed to verify the aspect from the second defendant under Sections 32, 33 and 34 of the Registration Act. The Trial Court dismissed the suit and the same was upheld by the First Appellate Court.Allowing the second appeal, the High Court observed that In view of the cancellation of the original power of attorney, the same could not be relied upon by the Registering Authority for the purpose of execution of the sale deed. The High Court also held that as per Section 18 of the Registration Act, it was necessary for the Registering Authority to see the true copy of the special power of attorney.Disagreeing with the High Court's view, the Supreme Court noted that Section 18A contemplates the production of a true copy of a document, which is sought to be got registered and not the true copy of the power of attorney. "The understanding of the Courts regarding Section 18A is also erroneous. Section 18A was enacted only to ensure that the copying process is hastened, as noticed from the Objects and Reasons. The Trial Court was right when it held that Section 18A is concerned only with the document which is presented for registration. The Trial Court clearly erred relying upon Section 18(A) to hold that certified copy however being produced of the power of attorney was in conformity with Section 18A and the High Court was equally in error to hold that Section 18A contemplated production of true copy of the power of attorney."The court then proceeded to examine the contention of the plaintiff that having regard to Sections 32 and 33 of the Act, the original power of attorney should be produced. The bench noted the following :When a person empowers another to execute a document and the power of attorney, acting on the power, executes the document, the power of attorney holder can present the document for registration under Section 32(a). Section 32(a) of the Registration Act deals with the person executing a document and also the person claiming under the same. It also provides for persons claiming under a decree or an order being entitled to present a document.Section 32(b) speaks about the representative or assignee of 'such a person'. The word such a person in Section 32(b) is intended to refer to the persons covered by Section 32(a).Section 32(c) provides for the agent of 'such a person' which necessarily means the persons who are encompassed by Section 32(a). Besides agent of the person covered by Section 32(a), Section 32(c) also takes in the agent of the representative or assignee. Now the words representative or assignee are to be found in Section 32(b). Thus, Section 32(c) deals with agents of the persons covered by Section 32(a) and agents of the representative or assignee falling under Section 32(b). It is in respect of such an agent that there must be due authorisation by a power of attorney, which in turn, is to be executed and authenticated in the manner provided for in Section 33.The person, who has actually signed the document or executed the document for the purpose of Section 32(a) does not require a power of attorney to present the document. It may be open to the principal, who has entered obligations under the document, to present the document.Section 32(c) must alone be read with Section 33 of the Act. Thus, when Section 32(c) of the Registration Act declares that a document,...

Registration Act Does Not Contemplate Inquiry Into Whether PoA Holder Who Executed Document Had Valid Power Of Attorney: Supreme Court

LIVELAW NEWS NETWORK

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

LIVELAW NEWS NETWORK

Registration Act Does Not Contemplate Inquiry Into Whether PoA Holder Who Executed Document Had Valid Power Of Attorney: Supreme Court

LIVELAW NEWS NETWORK

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

LIVELAW NEWS NETWORK

This is a premium content
Available exclusively to
Our subscribers