What a power of attorney is
A power of attorney is a document in which one person, the principal, authorises another, the agent, to act for them. The Powers of Attorney Act, 1882 and the agency rules in the Indian Contract Act, 1872 govern it.
The agent can do only what the document allows. Anything outside it does not bind the principal.
General and special
| General power of attorney | Special power of attorney | |
|---|---|---|
| Scope | Many acts, often all matters about a property or a bank account | One named act, such as selling one plot or appearing at one office |
| Ends | When revoked, or on the principal's death | When the act is done, when revoked, or on death |
| Risk | High, because the agent can do a lot | Lower, because the power is narrow |
If you need one task done, give a special power of attorney. Name the property, the act and the period.
How a power of attorney ends
Under Section 201 of the Indian Contract Act, the agency ends when:
- the principal revokes it,
- the agent gives it up,
- the work is completed,
- the principal or the agent dies or becomes of unsound mind, or
- the principal is declared insolvent.
There is one exception. If the agent has their own interest in the property, for example a buyer who has paid the full price, the power cannot be revoked to hurt that interest (Section 202).
How to revoke a power of attorney
- Write a deed of revocation. Name the original document, its date and, if registered, its number.
- Register it where the original was registered. If the power of attorney was registered, register the cancellation at the same Sub-Registrar office.
- Tell the agent in writing. Send it by registered post and keep the receipt. The revocation binds the agent only when they learn of it (Section 208).
- Tell the people who deal with the agent. Banks, tenants, buyers and offices are bound only once they know. A public notice in a newspaper helps.
- Take back the original. Ask the agent to return it.
Forged and stale powers of attorney
Many property frauds use a power of attorney that is forged, or one that ended when the owner died. Before you buy from an agent, check these:
- See the original. Compare the signatures and photos with the owner's other documents.
- Check the registration. If it says it was registered, get a certified copy from the Sub-Registrar office and compare.
- Check that the owner is alive. A power of attorney ends on the owner's death. A sale after that is not valid.
- Check that it was not revoked. Look for a cancellation in the Encumbrance Certificate, and ask the owner directly.
- Speak to the owner. A video call with the owner holding their ID is a simple check. Pay the price into the owner's own bank account, not the agent's.
- Read the scope. The power must cover selling this exact property.
Courts presume that a power of attorney signed before a notary or an Indian consul was properly signed (Section 84 of the Bharatiya Sakshya Adhiniyam, 2023). That presumption can be disproved, so it is not a substitute for these checks.