April 07, 2023 | Corporate & CommercialThe Power of Attorney Act 1882 1A-Definition- In this Act, “Power of Attorney” (POA) includes any instrument empowering a specified person, hereinafter referred to as the Attorney to act for and in the name of the person executing it, hereinafter referred to as the Executor/Principal.
The Power of Attorney Act 1882 1A-Definition- In this Act, “Power of Attorney” (POA) includes any instrument empowering a specified person, hereinafter referred to as the Attorney to act for and in the name of the person executing it, hereinafter referred to as the Executor/Principal. The Power of attorney has the powers enunciated and the Executor/Principal ratifies the acts of the Attorney. POA is generally revocable however there are irrevocable POAs as well.
In case the Executor/Principal finds that the Attorney has acted beyond the powers granted to him, or the purpose of the POA is over or the Attorney has died, turned insolvent or insane, the Executor/Principal may revoke the POA at his own will. In certain cases where the POA is irrevocable, this privilege cannot be exercised by the principal, especially if the Attorney has an interest in the subject matter of the Power of Attorney.
A revocable POA that has only been notarized can be cancelled or revoked by issuing a notice/letter of revocation to the Attorney. The letter of revocation should mention the reason for which the power is being revoked, the effective date of revocation and the consequence thereof. The said notice/letter should be duly served upon the Attorney. A paper publication is also advisable after issuing such a letter of revocation.
A revocable Power of Attorney which has been registered before the registrar /sub-registrar can be revoked by a Deed of Revocation, which also needs to be registered at the place of residence of the Executor. The deed should contain the reason for revocation, the effective date of revocation and the consequence thereof. Once the deed is drafted and registered, its copy should be sent to the Attorney intimating him of the revocation. A paper publication should be done after issuing such deed of revocation so that the public, in general, has intimation about the power having been revoked.
It is, however, difficult to revoke an irrevocable power of Attorney (defined so by its terms and title) especially if the Attorney has an interest in the subject matter of the Power of Attorney. However, in case of a breach of power, a revocation notice can be issued and in certain cases, even the court of appropriate jurisdiction can be approached for such revocation.
A Power of Attorney gets automatically revoked in case of the death, insolvency or insanity of the executor and/or the Attorney or in the case where the purpose of the POA is over.
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