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Q. Power of Attorney transactions

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Sudhir Shah

posted 1 month ago

Q.Power of Attorney transactions
In 2009 Son 'S' executed a General POA in favor of Father.

Father 'F' entered into agreement for and on behalf of son S, with original landlord to purchase 5 acre property. Earnest amount was paid in cash.

In 2010, based on the rights derived from Agreement to Purchase, F further executed earnest note on behalf of S in favor of Purchaser P for sell of NA plots in proposed layout plan of the 5 acre land. F signed the earnest note and acknowledged receipt of 50% of consideration again in cash as earnest amount but never received the same. The earnest amount paid by Investor 'I' was misappropriated by the Broker 'B' who also signed the earnest note as Witness No. 1.

10 days after the earnest note, Broker B purchased the 5 acre land from the Original landlord in the name of his son.

F and S have initiated civil and criminal action against Broker B.

In 2015, Dispute arose between investor I and son S who could neither execute sale of of NA plot in favor of I nor agreed to refund the earnest amount because he or his Father never received the same. I filed civil suit again S & F (without making B and his son necessary party) seeking relief of execution of sale deed or alternatively for refund of earnest money with interest and damages from S & F.

POA holder F passed away in 2018.

What are the rights of I ?

What are the obligations of Son S? Whether Principal is responsible for torts or acts of his Agent after his death?

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J S Pawar

Experience: 3 Year(s)

Responded 1 month ago

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A. ) Sir
Your problem solved or queried sufficiently?

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Kishan Dutt Kalaskar Retired Judge

Experience: 33 Year(s)

Responded 1 month ago

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A. ) Dear Sir,
From 2011 the transactions through Power of Attorney was restricted and once a Power of Attorney died or the executor of Power of Attorney died then GPA comes to an end.

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Sudhir Shah

Replied 1 month ago

Does this mean that the agreement made by POA holder (agent) F with investor I becomes null and void after the death of POA holder (agent). Principal still being alive.

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J S Pawar

Experience: 3 Year(s)

Responded 1 month ago

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A. ) I can file suit for relief of contract performance or seek refund along with interest n compensation. S could hv filed civil suit against Original Land lord for broken contract and seek damages and also injunction order against B/his Son plus cancellation of newly created sale deed between original LL n B/his son. Elaborated n clear advice only on perusal of documents and related history of transactions.

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J S Pawar

Experience: 3 Year(s)

Responded 1 month ago

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A. ) Sir
Is the same land of 5 acres is purchased by B which was in agreement to purchase? Second if u never received money of earnest deposit how come u signed d agreement. If Broker misappropriated amount has u filed criminal case?

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Sudhir Shah

Replied 1 month ago

1. B and F were good old friend. F acted as per instructions of B and signed all documents as advised to him. F relied on the false promise made by B and signed earnest note in blind faith which is the cause of whole dispute.

2. Yes the same 5 acre purchased by B and his son within 10 days even though B signed as witness on the agreement between F and I.

3. Criminal complaint was filed against B and his son. But Police said this is a civil dispute. S and F failed to file 156(3) in 2011 can it be filed now? The dispute is still on going.

4. Action against original LL for breach of contract / cancellation of sale deed too time barred now.

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J S Pawar

Experience: 3 Year(s)

Replied 1 month ago

Sir
Issue is bit complicated but S is in reasonably well position to seek justice. Plz take my contact from Vidhikarya so we can discuss in details. Even any remedy is time barred it can b utilised through delay condonation with satisfaction of the Court. 156(3) shd hv happened but still not out of reach if we do something in that direction

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