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Revocation of power of attorney

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Revocation of power of attorney

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Revocation of power of attorney

  1. 1. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com A S SANGEETHA REVOCATION OF POWER OF ATTORNEY – ITS IMPLICATION
  2. 2. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com What is a Power of Attorney ? • If for some reason a person is unable to execute a document himself, he may authorize a third party to execute such document on his behalf by mode of granting the said third party, Power of Attorney. It is regulated by the Power of Attorney Act, 1882 and other relevant laws in India. A Power of Attorney may be: • General Power of Attorney, if the principal grants the Power of Attorney holder all such powers which are necessary to accomplish the objects for which such Power of Attorney is given. • Special Power of Attorney, if the principal wants the Power of Attorney holder to exercise only such powers as are specified in the Power of Attorney deed. It is important to know the procedures and legalities involved in revocation once Power of Attorney is granted to an agent, to avoid any misuse of power.
  3. 3. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Kinds of Power of Attorney: A Perspective on Revocation A power of attorney, depending upon the clauses of the deed executed, may be – • Revocable: If the Power of Attorney is revocable at the will of the principal. • Irrevocable: If the Power of Attorney is not revocable at the will of the principal.
  4. 4. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Steps: Revocation of Power of Attorney
  5. 5. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Revocable Power of Attorney Generally, the principal has the right to terminate the Power of Attorney whenever he wills to do so. Some of the conditions for revocation are ( by virtue of Section 201 of the Indian Contract Act, 1872): • If the principal revokes the Power of Attorney granted to the agent. • If either the principal or the Power of Attorney holder or both become unsound of mind, die or is/are adjudicated as insolvent by the court. • If the Power of Attorney holder renounces his powers. • If the business for which the Power of Attorney was granted gets completed. Power of Attorney may also be revoked if there is an implied revocation of the Power of Attorney or in case of time barred agency, the term of the Power of Attorney expires.
  6. 6. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com When Can I Revoke a Previously Issued Power Of Attorney? • There is no limitation on when you can revoke a POA. The Grantor is free to revoke the power as and when he sees fit. If you feel that you may become incompetent in the near future or if you feel death is imminent, it is wise to revoke the POA, unless the POA previously issued was of a Durable nature and you want it to remain. • The Grantor is under no obligation to provide any explanation as to why you chose to revoke the powers. Making a Revocation Legally Valid and Enforceable It is fairly simple to make a legally valid Revocation of Power of Attorney. All you need to do is carry out the following steps- • Draft a deed for Revocation of Power of Attorney. • If the Power of Attorney you wish to revoke was notarized or registered, you will need to do the same for the Revocation document as well. • Send a copy to the Attorney. Keep in mind the revocation is effective if it is received by the Attorney. Sending it via registered post would be ideal. • Send a copy of the Revocation of Power of Attorney to banks/institutions where the Attorney may have acted on your behalf. • Send a copy to where the POA was registered. Eg deed registry, land titles office etc. • Preserve a copy for yourself in a safe place. - Contd.
  7. 7. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Irrevocable Power of Attorney A power of attorney may have a clause in it stating that such power of attorney is irrevocable. A Power of Attorney shall not be deemed to be an irrevocable one Merely because it states, in the clauses of the deed executed for grant of such Power of Attorney, of it being irrevocable. Such Power of Attorney may be revoked by the principal or the Power of Attorney holder by the procedure according to law. For revocation of irrevocable Power of Attorney, the principal is required to issue a public notice through local newspapers, without which, the revocation shall stand void.
  8. 8. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com However, in the following cases a principal cannot revoke a Power of Attorney: • Where the Power of Attorney holder, i.e. the agent himself has an interest in the subject matter of the Power of Attorney. For revocation of the Power of Attorney falling under this category, consent of the Power of Attorney holder is mandatory. • Where the agent has partly exercised the act for which Power of Attorney was granted, he cannot be stripped with the right for the act which he already exercised. [1] - Contd.
  9. 9. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Which Section? Section 202 of the Indian Contract Act and Revocation of Power of Attorney “Where the agent has himself an interest in the property which forms the subject matter of the agency, the agency cannot, in the absence of An express contract, be terminated to the prejudice of such interest.” Therefore, by virtue of this section, a power of attorney can not be revoked by the principal without the consent of the agent if the agent has an interest in the subject matter of the Power of Attorney. Moreover, such Power of Attorney is not deemed to revoked even after death or insanity of the principal.
  10. 10. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com - Contd. To understand situations where Power of Attorney can be said to be coupled with interests, the following case may be referred to: The Supreme Court of India, in Seth Loon Karan Sethiya v. Ivan E. John held that the agency cannot be revoked where such agency is created in exchange for some valuable consideration and the authority granted by the agency is to secure the interests of the agent or to effectuate the security against such consideration. Therefore, in a case where the agent himself has an interest in the property, the agency can not be terminated unless there is an express contract for such termination, to the prejudice of the agency holder.
  11. 11. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Some of the important things to know about the revocation of a Power of Attorney are: 1. Notice: In an express revocation of Power of Attorney, whoever, whether the principal or the agent requires to end the Power of Attorney, must give reasonable notice to the other party before the revocation. Upon failure to do so, all the costs of damages caused on account of Such failure, incurred by the other party to whom such notice was owed, shall be made good by the party who failed to fulfill his obligation to give such notice. Reasonability of the notice differs from case to case, depending upon the clauses of the deed. An implied revocation does not require a prior notice. Revoking Power of Attorney
  12. 12. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com 2. Unregistered Power of Attorney vis-a-vis Registered Power of Attorney: A Power of Attorney may be registered or unregistered. The Procedure for revocation of both of them are different, as discussed below: • Registered: A registered Power of Attorney can only be revoked by means of a registered deed. • Unregistered: An unregistered Power of Attorney can only be revoked by an unregistered instrument of revocation. Apart from that it is required to issue a public notice regarding such revocation through local newspapers, without which, the revocation shall stand void. 3. When the Power of Attorney is executed jointly: If the Power of Attorney is executed jointly by several people, it is not valid for one of the principals to effectuate the revocation of the agent without the consent of the others. However, if the joint execution is executed severally, revocation by one of the principals of the agent is valid. - Contd.
  13. 13. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com 4. When the Power of Attorney is executed in favour of two or more people: In a case where the Power of Attorney is executed in favour of one or more people jointly but one of the agents die, the remaining agents cannot exercise the Power of Attorney. However, if such execution is jointly and severally, the remaining agents can validly exercise the authority granted to them by the Power of Attorney. 5. Power of Attorney given by a Firm: If a firm gives Power of Attorney to an agent, such power of attorney gets revoked automatically upon dissolution of the firm. - Contd.
  14. 14. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Conclusion As much important the concept of Power of Attorney is to facilitate the principal to carry on his work even without actually being present at the place where such work is to be done, so is the right of the principal to revoke it to avoid any harm to his interest by the agent. While in most of the cases revocation is possible, there are some exceptions to it. Before giving someone or accepting the power of attorney, the principal/agent should be aware of these conditions.
  15. 15. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com

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