Power of attorney — Revocation by registered deed — Registration Act section 17(1)(b).

The issue before the High Court was:

Whether the registered power of attorney under the provisions of section 32 r.w.s. 33 and section 17(1)(b) of the Indian Registration Act could be revoked without registration or cancellation thereof.

The power of attorney dated 17-3-1967 was relating to the agricultural land of the plaintiff and included the power to sell the land. When there is a transfer of all rights and liabilities over the land including the power to transfer, then it was required to be registered and was registered. The power of attorney contained a clause that it would not be disputed or that there shall be no dispute between the parties and it shall not be ignored. By its cancellation the rights created are sought to be extinguished. The rights created related to immovable property of a value of more than one hundred rupees. Hence u/s.17(1)(b) of the Registration Act a document that creates or extinguishes any right in such immovable property would require registration. In the event a document required to be registered u/s.17 is not registered the effects of non-registration are detailed u/s.49 of the Act. Such a document shall not affect any immovable property or confer any power or create any right or relationship. Therefore, the document whereby the registered power of attorney dated 17-3-1967 was cancelled required registration u/s.17 of the Act and since it was admittedly not registered the effect of non-registration u/s.49 of the Act would affect it.

In the present case a notice dated 20-2-1973 canceling the power of attorney was duly served and received by the attorney prior to the execution of the sale-deed dated 26-12-1975 by him. Admittedly it was a communication sent by the plaintiff to the attorney.

The power of attorney dated 17-3-1967 was revocable. It did not contain any clause that it would be irrevocable. It only said that the parties thereto will not dispute it or ignore it. Normally revocation is complete when it comes to the knowledge of the person against whom it is made. The power of attorney dated 17-3-1967 was not a mere proposal or just a promise. It was also not a simple agreement between the parties. An agreement between the parties would have to contain an element of consideration or act or omission to give it enforceability as a contract. The power of attorney created rights in immoveable property including that of alienation. Being revocable it could be revoked. But not just by a communication. Since it dealt with immoveable property of a value of more than one hundred rupees and created a right to transfer the property it was compulsorily registrable. And when it was registered it could be revoked only upon execution of a registered document of revocation. Hence due to non-registration of the communication/document of revocation it could not affect the sale deed dated 26-12-1975 executed by the attorney, nor could it affect the power of attorney dated 17-3-1967. The relationship of principal and agent established through a registered deed could be validly terminated by a registered deed in view of the Registration Act.

The conclusion would, therefore, be that when the document/notice of cancellation dated 20-2- 1973 was compulsorily registrable and it was not registered, then even upon its execution or service upon the attorney it would not in any manner affect the rights created under sale deed dated 26-12-1975. It did not extinguish the rights created or assigned on the attorney upon execution of a registered power of attorney.