What if you decided to trust someone and entrust them to handle your property or any financial matters? How to to give someone, who is your trusted friend, an authority to sell or manage on behalf of you? It is possible through a legal document called a General Power of Attorney or Special Power of Attorney, based on how broad or narrow its scope is.
But what happens if the person entrusted through General Power of Attorney dies? Or the person by whom the GPA was made, dies? Does the power of Attorney still survive? Or stops everything after death of one of the parties? What about the validity of power of attorney after death of one of the principals. Let’s understand this question as discussed in detail by the Madras High Court in the case titled K.A. Meeran Mohideen v. Sheik Amjad. In this case, the Court gives clear and thorough explanation that now resolves the conundrum for people dealing in land and joint properties like similar cases.
What is a General Power of Attorney?
General Power of Attorney (GPA) is a legal document that allows one person (as called the principal) to authorize another person (as called the agent or attorney) in fact to act on their behalf in a wide range of matters. This could be for the managing property, selling land or handling bank transactions, etc.
Is a Power of Attorney Valid after Death of Principal?
The general rule as well as recent SC case on validity of GPA after death of Principal reflects that a General Power of Attorney is invalid after death of Principal. However, the Court emphasized upon the terminology of such GPA. The Court clarified that each case is different, GPA is different, and facts are different. The Madras High Court in the present case dealt with the facts for when there are multiple GPA Holders or Executors. The Court particularly focused on the question of validity of power of attorney after death of one of the principals. In such a case, does the GPA remain valid after death of one of them? Let’s see!!
KA Meeran Mohideen v. Sheik Amjad (2024)
The main point of this case is that if several people give a power of attorney together, and one of them dies, does the agent still have the power to act for the rest? Here is what happened in this case:
Background of case
In this case, the petitioner filed a second appeal in the Madras High Court. However, during the course proceedings, the petitioner died and no legal heir came forward to continue this appeal. Hence, the appeal technically came to a closure. However, this legal question referred to the Division Bench of High Court remains – Does a General Power of Attorney executed by more than one principal survive after the death of one of the principals? In other words, what is the validity of power of attorney after death of one of the principal. This question was important for the court and important to resolve the unclear law that came from this case. Hence, the Madras High court proceeded to still answer the same. Because it is important for public importance.
Law on General Power of Attorney
Before concluding anything regarding validity of GPA after death of principal, the High Court looked at the relevant laws on General Power of Attorney. Speaking of Section 201 of Indian Contract Act, it lays about the termination of agency. The provision clarifies that it may be terminated on principal revoking authority, agent renouncing business, business being completed, or death/unsoundness of mind/insolvency of either of the principal or agent.
The Court discussed that Sections 201 to 210 of the Act do not deal with circumstances when there are multiple Principals and one of them dies.
Precedents on Validity of Power of Attorney after Death of one of the Principals
The High Court proceeded with scanning the precedents in this regard.
- Re: Sital Prosad v. Raja Brijnarain Roy (1916)
The Calcutta High Court held that “the question whether the power of attorney came to an end by death of one of the principals depends upon the construction which is to be put upon the terms on the power of attorney….. intention of the parties needs to be ascertained from the prevailing factual situation as well as the terms of the instrument.”
- M. Ponnuswami Pillai v. Chidambaram Chettiar (1918)
The Division Bench of Madras High Court compared a partnership with a Hindi Joint Family. The Madras high court held that General Power of Attorney executed by two members of a Hindu joint trading family does not terminate upon the death of one member. The reason was that the whole interest would devolve on the survivor whose authority remained unaffected by death of one of the principals.
- Garapati Venkanna v. Mullapudi Atchutaramanna (1938)
In Ganpat Venkanna case the court held that if multiple people give someone power of attorney and each has separate share of property, that power ends for the person who died. Hence, the deceased person’s interest was not continued further throughout it, if each person’s part clearly their own, the power doesn’t carry after the dealth.
- Periammal v. Ramesh (2022)
In Periammal v. Ramesh, the Division Bench of Madras High Court said that if people from a joint family give someone Power of Attorney, and one of them later dies, the power doesn’t automatically end. Since the document gave full rights to the agent and the remaining members continued to support it, the court held it was still valid. In simple terms: the power stays alive if the rest of the family still agrees and the document allows it.
- Tasker v. Shepherd
This is old UK case, the two business partners gave someone job of selling atone for their business. But an one of partner died the court said No, the deal doesn’t continue. Because the agreement was tied to a specific partnership. When one partner died, that partnership ended.
Madras High Court’s Decision
The Court while deciding the validity of GPA after death of one of the principals expressed that “a power of attorney deed executed by several persons, which cannot be said to be coupled with interest, is not automatically terminated on the death of one of the principals. The question of termination would necessarily depend on the facts and circumstances of each case”. The Court held that termination would depend upon facts, intention during execution, continuation if intended, and termination of principals had specific interest. The Court further added that “If the interest of the deceased principal is separable from that of the surviving principal’s, then, the power would not survive in respect of the deceased principal.”
The final decision of the court is even if one of principle is death it does not automatically cancelled the power of attorney. Termination of the power on the death of one of the principals is not automatic. It will depend on the facts and circumstances of each case and the recitals in the document as well as the object that is sought to be achieved.
Conclusion
This Madras High Court Judgement is important because it helps clear confusion about the power of Attorney when one of its principles dies. The court said that power does not end when someone dies. The court also referred to many previous judgments in order to come to a conclusion. This decision is useful in real life where many families own land or homes together and give general power of Attorney to someone they trust.
This judgment is important because many Indian families give General Power of attorney for property matters. Without knowing the clear rules, it often leads to confusion and even court cases. The Madras High Court’s decision now gives us clear path, to understand when a GPA shall remain valid even after the death of one of the Principals.
