Power of Attorney is a legal instrument. In this, a person can authorize a person to make decisions on behalf of the principal in certain matters like financial decisions, business matters, private affairs, some legal matters, etc. The necessity of power of attorney arises when there are more complicated situations arises like the principal is unable for doing any particular act, the principal is unable for appearing before the court or other authorities, etc. The agent has the right to appear before the court and sign any particular documents on behalf of the principal.
The power of attorney establishes a principal and agent relationship between them. Power of attorney creates a contract between the parties, this contract same like the agency which we studied in the Indian Contract Act,1872. It is a legally bounding contract. In this, if the agent does any act on the behalf of the principal so the principal is liable and legally bound to perform that act which his agent did.
THERE ARE TWO TYPES OF POWER OF ATTORNEY
1. GENERAL POWER OF ATTORNEY
It is a type of power of attorney, in which the power of attorney is dealing wholly the subject matters like property mortgage, contract, sale and purchase, etc.
2. SPECIFIC POWER OF ATTORNEY
It is a type of power of attorney, in which the power of attorney is dealing with a particular subject matter whose subject matter’s power of attorney grant to the agent he can only deal with that matters.
STATUTES WHICH ARE GOVERN POWER OF ATTORNEY
- INDIAN CONTRACT ACT,1872
- REGISTRATION ACT,1908
- POWER OF ATTORNEY ACT,1882
- INDIAN STAMP ACT,1899
The Indian Contract Act,1872 is defined under S.182 that, An “agent” is a person employed to do any act for another or to represent another in dealing with third person. The person for whom such act is done, or who is so represented, is called “principal”. The act of the agent will be deemed in law and the principal is bind for his act.
The Power of Attorney Act,1882 is defined under S. 1A that, a power of attorney includes any instrument empowering specified person to act for and in the name of person executing it.
The Indian Stamp Act,1899 is defined power of attorney under S. 2(21) that,power of attorney includes any instrument ( not chargeable with a fee under the law relating to court-fee for the time being in force) empowering a specified person to act for and in the name of the person executing it.
POWER OF ATTORNEY IS FORM BY TWO WAYS
1. REGISTERED POWER OF ATTORNEY
Registered power of attorney is signed before the registering authority like District Sub-registrar or Additional District Sub-registrars. It is recorded in the registrar’s office. Here is to be noted that the power of attorney is registered so its revocation also will be registered.
2. UNREGISTERED POWER OF ATTORNEY
Unregistered power of attorney is not registered before the registering authority and it is only signed by both the parties or notarized by a notary public.
There is no limitation period to revoke a power of attorney. The principal has absolute power to revoke a power of attorney on his will and he is free to revoke the power of attorney when he wants, there is no obligation over him that he has to give the reason for revocation. But it should be noted here that, if any principal of a power of attorney so for the revocation, there must need the signature of all the principals in the revocation notice, but in the case when one or more agent a power of attorney and one of them die so it will not be void, others agents continue to perform there duty. The power of attorney can revoke many reasons like when the principal feels the agent become incompetent in the future or insolvent, death of the agent, when the purpose is complete when the business is completed, etc, these are some reasons in which the principal can revoke the power of attorney.
WHY DO WE NEED FOR A WRITTEN REVOCATION OF POWER OF ATTORNEY?
As we knew, the power of attorney strong and powerful document. For the saving from the worst consequences, it is necessary the revocation of power of attorney should be written because we know the agent do many acts and work in many places on the behalf of the principal. If he will not revoke the power of attorney by the written revocation so the agent can take the advantage and misuse of the power if it is in the wrong hand, that’s why we need to written revocation.
PROCEDURE OF THE REVOCATION OF THE POWER OF ATTORNEY
Before knowing the procedure of the revocation of power of attorney it should be necessary to us, the power of attorney is two types –
1. REVOCABLE POWER OF ATTORNEY
Revocable power of attorney is that which can revoke at any time on the will of the principal and there is no obligation over the principal that he or she has to give the reason and second revocation by mutual means the principal and agent both agree to revoke the power of attorney. If the power of attorney is registered so the revocation is also in registered form.
2. IRREVOCABLE POWER OF ATTORNEY
Irrevocable power of attorney is that which can not revoke at any time or on the will of principal easily because when the power of attorney is formed that time a point is mentioned in the deed that this power of attorney is irrevocable in nature. So for the revocation of this type of power of attorney one has to issue a public notice through the newspaper but it does not issue a public notice so the revocation is invalid, so it is compulsory for a valid revocation to follow this way.
THESE ARE THE STEPS FOR MAKING A VALID REVOCATION
- Draft a legal notice for revocation of power of attorney and also the signature in the notice by the principal.
- Chose the way for revocation that how should notarized or registered and after that follow the same for the revocation of power of attorney. But here it should be noted that if the power of attorney is registered so the revocation is also should be registered.
- Before the revocation, it is an obligation to inform the agent about the revocation, for that send a copy to the agent and when the revocation will come to the effect then the agent received the copy of revocation and also send a copy in the registered post would be ideal.
- Send a copy of the revocation in all places where the agent appears and work on the behalf of the principal like banks, institutions, court, etc, this is necessary for saving worst consequences because of this they came to know that the agent is no more agent of the principal and now he or she is not doing any act on the behalf of the principal.
- The revocation of power of attorney will have to register by the same authority where the power of attorney was registered.
- A copy of the revocation of power of attorney must keep yourself.
 S.182,Indian Contract Act,1872
 S.1A, The Power Of Attorney Act,1882
 S.2(21), The Indian Stamp Act,1899
- Indian Contract Act,1872
- The Power Of Attorney Act,1882
- The Indian Stamp Act,1899
This article is written by Shweta Sharma, 2nd Year student of BA LLB at JEMTEC School of Law, Greater Noida.
Also Read – Who Can Challenge A Power of Attorney?