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Power of Attorney

Sale deed done by POA without knowledge of property owner

Mr.x have GPA to mr.y for loan purpose mr.y sale the property without mr.x knowledge while he is still alive. Mr.x is still have possession of property and file civil suit against mr.y and buyer. The sale deed can be cancelled or not?

5 months ago

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A.
Dear Client,
The Supreme Court of India ruled that a power of attorney cannot be used for the sale of immovable property. Sale transactions must be done through registering a sale deed to ensure authenticity and legality. Power of attorney holder can't sell property unless authorised to do so as per SC. Those with a general power of attorney for property of a property cannot sell it unless there is a specific provision in the document giving them the power to do so, the Supreme Court has ruled. While delivering its judgment in the Suraj Lamp & Industries versus the State of Haryana case, the Supreme Court in 2011 ruled that property transactions carried out by way of PoA do not hold legal validity. If Mr. X has filed a civil suit against Mr. Y, he can seek cancellation of the sale deed. We hope that our response is helpful to you.
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