#PowerOfAttorney #SaleOfProperty #PurchaseOfPropertyByAttorney #SurajLampCase

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It is well settled that General Power of Attorney executed for a consideration is irrevocable अखण्डनीय under Section 202 of the Contract Act, 1872 and such a power of attorney cannot be revoked even upon the death of the executant.
What is the effect of Judgment of Supreme Court in Suraj Lamp and Industries Private Limited v. State of Haryana, 183 (2011) DLT 1 (SC)?
There can be no sale or conveyance through POA.
General Power of Attorney transactions convey limited rights for part performance under Section 53A of the Transfer of Property Act, 1882 and Section 202 of the Contract Act, 1872.
General Power of Attorney transactions cannot be treated as complete transfer but they can be treated as existing agreement of sale and the attorney holder can execute the deed of conveyance in exercise of the power granted.
The General Power of Attorney transactions executed before the date of the judgment in Suraj Lamp in 2010 can be relied upon to apply for regularization of allotments/leases.
Any agreement to sell with possession or without possession which is not a registered deed of conveyance will not confer any title nor transfer any interest in an immovable property.
What is Scope of Power of Attorney?
A power of attorney is creation of an agency whereby the Principle authorizes the agent to do the acts specified therein, and it will be binding on the grantor as if done by him. ( Section 1A and Section 2 of the Powers of Attorney Act, 1882).
It is revocable or terminable at any time unless it is made irrevocable. Even an irrevocable attorney does not have the effect of transferring title to the grantee.
A power of attorney is, as is well known, a document of convenience.
Execution of a power of attorney in terms of the provisions of the Contract Act as also the Powers of Attorney Act is valid.
An attorney holder may execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor."

What is the difference between the Power of attorney sale and Sale or Conveyance as per Suraj Lamp?
1. SA/GPA/WILL transactions are not 'transfers' or 'sales' and that such transactions cannot be treated as completed transfers or conveyances.
2. They can continue to be treated as existing agreement of sale.
3. Nothing prevents affected parties from getting registered Deeds of Conveyance to complete their title.
4. 'SA/GPA/WILL transactions' may also be used to obtain specific performance or to defend possession under Section 53A of Transfer of Property Act.
5. If they are entered before this day, they may be relied upon to apply for regularization of allotments/leases by Development Authorities.
6. If the documents relating to 'SA/GPA/WILL transactions' has been accepted acted upon by DDA or other developmental authorities or by the Municipal or revenue authorities to effect mutation, they need not be disturbed, merely on account of this decision.
7. SC made it clear that our observations are not intended to in any way affect the validity of sale agreements and powers of attorney executed in genuine transactions. For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance.
8. A person may enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings and in that behalf execute an agreement of sale and grant a Power of Attorney empowering the developer to execute agreements of sale or conveyances in regard to individual plots of land or undivided shares in the land relating to apartments in favour of prospective purchasers.
9. In several States, the execution of such development agreements and powers of attorney are already regulated by law and subjected to specific stamp duty. Our observations regarding 'SA/GPA/WILL transactions' are not intended to apply to such bona fide/genuine transactions.
In Ramesh Chand v. Suresh Chand, 188 (2012) DLT 538, Delhi High Court held that the Power of Attorney given for a consideration coupled with interest is irrevocable under Section 202 of the Contract Act, 1872 and subsists even after the death of the executant. The purchaser may not be a classical owner as would be an owner under the registered saledeed but surely he would have better rights/entitlement of possession than the person who is in actual physical possession.