Kishan Dutt
VALIDITY OF SPECIAL POWER OF ATTORNEY
Kishan Dutt Kalaskar 19 Mar 2025

VALIDITY OF SPECIAL POWER OF ATTORNEY

INTRODUCION: - A special Power of Attorney is a legal document which provides a validity to an agent or any related person or attorney in fact the authority to act on behalf of the principle in respect of any specific matters. The existing difference between General Power of Attorney and Special General Power of Attorney is evident under some limited particular conductivities or transactions. Through this blog will be exploring the validity of SPA, probing into its explanation.

BACKGROUND: - The essence of power of attorney can be found in back in days under Romanian Law, ‘procuratio’.Over the period of time, through various legal systems was adopted and modified and the concept to suit their needs was come into the existence. In India, the power of attorney was introduced around British colonial period.In the 18th and 19th centuries, common law systems, including England, further developed the concept, emphasizing the need for clear documentation and legal recognition.The Indian Contract Act, 1872, and the Powers of Attorney Act, 1882, provide the legal framework for the creation and execution of powers of attorney, including Special POA.

KEY ASPECTS: - Under this some points are-

1.     A Special POA is a specific type of power of attorney that grants the agent authority to conduct on behalf of or represents the principal in certain matters.

2.     To make an Special POA be valid, it must be executed through maintaining the legal requirements, which includes the clear intention to grant authority by the principle and acceptance of the agent's, through documentation, notarization& registration, also stamp duty etc.

3.     The principal has the right to revoke the Special POA at any time, provided they are mentally and physically capable of doing so, in writing and after the communication has been done with the agent and any third parties involved (if any), practically have to maintain a proper execution.

4.     A Special POA limited scope for specific purpose, onlyfor which it is granted mentioned under the specified document related to this.

 

5.     Both the principal and the agent must have the legal capacity to enter into an agreement to beable to maintain a properexecutionunder power of attorney.

6.     The selection of the agent have to be maintain with clarity, which also includes the termination on completion.

DIFFERENCE: - The distinctions between the General and Special POA are-

1.     For General POA the scope is limited under broad authority for legal and financial matters and for Special POA the specific limited authority has been given for specific task or transactions.

2.     The General POA is more flexible than Special POA.

3.     The General POA has higher chances of risk than Special POA.

4.     General POA IS valid until it is revoked or the principle becomes incapable to be able to maintain the agreement, where for Special POA is valid until the completion of the specific given task or transaction.

5.     GPA can be used when one wants to manage their overall affairs in their absence, but in the situation of SPA can be used when one wants someone to manage single or any specific affair etc.

LEGAL PROVISION: - The legal provisions governing Special POA in India are primarily found those statutes which has highlighted the requirements for the creation, execution, and revocation of powers of attorney, these are-

1. The Indian Contract Act, 1872 provides the general principles of contract law, which is also applicable under the concept of powers of attorney.

2. The specific statute is Powers of Attorney Act, 1882, which has been specifically established for the purpose to deals with the legal framework in respect ofpowers of attorney in India, which has less down or includes the requirements and other necessary points for powers of attorney, including General POA and Special POA.

CASE LAW: -

·        The Supreme Court of India has delivered a judgement on the scope and validity of the power under POA documents. The Court has explained that a POA cannot be used for property transfer without principle’s consent and proper execution.

·        Ghanshyam v. Yogendra Rathi (2023): the Supreme Court has held that a Power of Attorney (POA) document, including an SPA, does not comes under a title document or includes any right over immovable property, which means a separate registered sale deed is required for this even if a SPA is used for sale process.

CONCLUSION: - The validity of a Special Power of Attorney depends on its compliance to the legal requirements and also on the principles specified through relevant statutes. Proper execution, documentation, and registration are essential for the validity of an SPA. It is crucial for individuals and entities to ensure that their SPA complies with the given duty to avoid any potential legal disputes or challenges, such as for any inconvenience above regarding matters you can contact Online Legal Query, who can navigate you towards those senior legal experts who are eligible also qualified to help so far through proper presentation of knowledge. 

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