INTRODUCTION
ASSIGNMENT NUMBER 23
WHAT IS POWER OF ATTORNEY?
A Power of Attorney is a document of agency whereby the principal appoints an agent to do
and execute certain acts or deeds on his behalf. It is basically an authority given by a person
or grantor regarding his property to the agent or agents.
Section 1A of the Power of Attorney Act, 1882 defines it as –
“power-of-attorney” includes any instrument empowering a specified person to act
for and in the name of the person executing it.
It is given by signing the paper by the grantor or the executant stating that the authority for
the prescribed property is given to the agent on behalf of the grantor and the agent will have
the same powers as the grantor has regarding that property.
Section 2 of the Power of Attorney Act, 1882 talks about execution.
Execution under power-of-attorney.—The donee of a power-of-attorney may, if he
thinks fit, execute or do any 4 *** instrument or thing in and with his own name
and signature, and his own seal, where sealing is required, by the authority of the
donor of the power; and every 4 *** instrument and thing so executed and done,
shall be as effectual in law as if it had been executed or done by the donee of the
power in the name, and with the signature and seal, of the donor thereof.
Despite there is a specific act pertaining to Power of Attorney but it is a very precise and brief
one, the basic principles of these document are governed by the law of agency as provided for
in the Indian Contract Act.
IMPORTANCE OF POWER OF ATTORNEY
A power of attorney document is extremely important part of estate planning yet one of the
most misunderstood. It is often convenient or even necessary to have someone else act for
you as there is advancement in the business and commerce transactions. As many people
confuse the power of attorney with a will (probate) but these documents are two very
different things and have two very different functions. A will comes into effect on the day a
persn dies. A POA applies during a person’s lifetime and the ceases to apply when he dies.
So you actually need both a POA and a will as they complement and do not overlap each
other.
CLASSIFICATION OF ATTORNEY
A power of attorney may be of two types-
1. General power of attorney- A general power of attorney is ne by which an
instrument is executed by the principal authorising the agent to do certain act in
general on this behalf. The word ‘general’ means that the power must be general
regarding powers in respect of a subject matter. A general power of attorney acts on
behalf of the principal
in any and all matters, as allowed by the state. The agent under a general POA
agreement may be authorized to take care of issues such as handling bank accounts,
signing checks, selling property and assets like stocks, filing taxes, etc. if the subject
matter is not general but restricted to something either specific or specifically
mentioned by the principal while drafting an instrument then it will not constitute a
general power of attorney. It is otherwise called as limited power of attorney.
2. Special power of attorney- A special power of attorney is one by which a person is
appointed by the principal do some specified act or acts. In this type of POA the
agent has to do specific act in a single or specified transactions in the name of the
principal.
The test to determine under which category a given document falls is as to what is the
subject matter in respect of which power is given and if it is restricted to some
specific matter it is specific else it is general. The power of attorney is a unilateral
coument wherein the donor or the principal gives authorisation power to the agent by
signing the document and the agent ‘s sign is not always required.
PERSONS COMPETENT TO EXECUTE
A power of attorney can be executed by any person who is competent to enter into a contract.
A company while executing power of ttorney must make conformnit with the Articles of
association and its common seal. A person must be competent to give power to the appointed
person so that it will not affect the legality of the instrument/ deed of power of attorney.
REGISTRATION
A POA is not compulsorily registrable unless it creates an interest in any immoveable
property, i.e., exchange in favour of done. Registration of POA is optional in India, where the
Registration Act 1908 is in force, the power of attorney should be authenticated by a sub-
registrar only, otherwise it must be properly notarized by the notary especially where in case
power to sell land is granted to the agent. If a power of attorney is in respect of an immovable
property of value more than Rs. 100 it must be registered. Registration of POA authenticated
the deed of power of attorney.
STAMP DUTY
A power of attorney is chargeable under section 48 of Schedule 1 of the Indian Stamp Act,
1899. A stamp duty has to be paid compulsorily by the principal or donor in the jurisdiction
registrar’s office.
POWER OF ATTORNEY AS AN AGENCY
1. A power of attorney is a delegation of authority in writing by which one person is
empowered to do an act in the name of the other. The person who acts on behalf of
another person (principal) by his authority, express or implied, is called an agent and
relation between him and his principal is called Agency.
2. A power of attorney is nothing but an agent as defined in Section 182 of Indian
Contracts Act, 1872. Actual authority is the legal relationship between the principal
and agent created by consensual agreement to which they alone are parties.
3. A power of attorney is a document of convenience.
4. A power of attorney may also purport to act as security to enable the security holder
to exercise powers conferred on him, which would be difficult for the donor to
perform at a subsequent time.
POWER OF ATTORNEY REVOCATION
The principal is free to revoke the power of Attorney granted to the agent by giving a written
notice to the agent (if it is for a fixed period)
The principle can revoke the POA if the work for which the agent was appointed is
over.
If the principal has named his wife as the agent, the authority of his wife as the agent,
the authority of his wife will automatically be terminated, if both of them get
divorced.
GENERAL POWER OF ATTORNEY
This general power of attorney is made at New Delhi on this date of 1 March 2020 by Hafsa
Ishaque D/O Shehla Ishaque R/O B-114, Batla House, Jamia Nagar, New Delhi-110025
(hereinafter referred to as the EXECUTANT)
In favour of
M/s Sumaiya Taqdees D/O Khalida Tasneem R/O 65, Zakir Nagar, Jamia Nagar, New Delhi-
110025 (hereinafter referred to as the ATTORNEY)
WHEREAS the executant is the absolute owner and is in lawful possession of House B-114,
Batla House, Jamia Nagar, New Delhi-110025 (hereinafter referred to as the ‘said property’)
AND WHEREAS the executant for the purpose of higher studies is leaving India on 10th
April 2020 and hence does hereby appoint, nominate, authorise and constitute M/s Sumaiya
Taqdees as my true legal and lawful general attorney in respect of the said property with the
free hold rights of the property under the said flat.
I hereby empower my above attorney to do the following acts, deeds and things in my name
and on my behalf-
1. To manage, control and supervise the aforesaid property in all respects, to sign, the
sale deed and to get the same registered with the registration authorities.
2. To enter into rent agreement in respect of the aforesaid property or its parts, to execute
rent agreement, to receive advance, to receive security, to issue rent receipt, to deliver
possession, to get the tenant evicted through process of law or negotiation, to take
back possession of the aforesaid property.
3. To sign all kinds of forms/ affidavits/ undertakings documents etc. which are
necessary on my behalf.
4. To enter into sale agreement, to receive earnest money, part payment, if any to
execute the said sale agreement and receive final consideration amount in his own
name.
5. To execute the sale deed, sign, verify and present the same for registration in the
office of sub-registrar, Delhi to admit its execution to receive the sale consideration
give statements and do all other acts deeds and things which are necessary for the
same.
6. To apply and obtain the necessary sale permission through the ‘no objection
certificate’ from the concerned departments.
7. To get the aforesaid property transferred and mutated in the record of the concerned
authority.
8. To submit a building plan for additional and alterations on the said flat and to submit
necessary estimates etc for the purpose.
9. To deposit house tax, electricity and water charges or any other dues and demands to
the concerned authority.
10. To execute, sign and present all kinds of suits, plaints, complaints, appeals, revision,
statement, applications in connection with the aforesaid property and its management.
11. To proceed with the conduct of all court proceedings for this flat and its management
and appoint an advocate for the purpose.
12. To compromise compound or withdraw court cases, to appoint arbitrators to process
with arbitration proceedings, to engage a lawyer, to deposit and withdraw money, to
execute decree, to receive or recover decreed amount, issue receipts and to take
necessary steps for the purpose.
13. To do the following acts, deeds and things under her own signature, for performing
aforesaid purposes:
i) To reply to the letters and notices, to make correspondence, to make
representations, to make petitions.
ii) To sign, execute, submit and present forms etc.
iii) To sign, submit and execute affidavits, declarations, indemnity bonds, surety
bonds, undertakings, no objections etc.
iv) To produce documents and to give statements.
14. I do hereby ratify that all acts, deeds, and things done by the said attorney for this
property shall be binding on me in all respects.
IN WITNESS WHEREOF I have executed this General power of attorney which shall be
irrevocable at New Delhi on the date mentioned above in the presence of the following
witnesses
WITNESSES
1. Tariqa Parvez
D/O Abul Parvez EXECUTANT
R/O 45 Misunderstood Bungalow, Hafsa Ishaque
Chowrangi Lane, New Delhi
2. Ruqaiya Takreem
D/O Sumaiya Taqdees
R/O 86 Burden House,
Overworked Lane, New Delhi
