Full Judgment Text
NON-REPORTABLE
2024 INSC 494
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 6495 OF 2023
THANKAMMA GEORGE ... APPELLANT
VERSUS
LILLY THOMAS AND ANOTHER ... RESPONDENT(S)
J U D G M E N T
S.V.N. BHATTI, J.
I. F ACTUAL M ATRIX
1. Thankamma George/Appellant, and Lilly Thomas/Respondent No. 1, are
sisters, and the daughters of one late George. P.M. Thomas/Respondent No. 2
is the husband of Respondent No. 1. The Appellant filed O.S. No. 139 of 2011
dated 11.05.2011 before the Court of Senior Civil Judge, Pathanamthitta for the
relief of declaration that the Appellant is the sole title holder of the suit schedule
property and for recovery of possession from the Respondents. The Appellant
prayed that she be declared as the exclusive and sole owner of one-half of the
Signature Not Verified
Digitally signed by
Deepak Joshi
Date: 2024.07.09
16:47:38 IST
Reason:
plaint schedule property, sale deed no. 345/2008 dated 16.04.2008 (Ex. A-5) of
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Enathu Sub-Registrar office as void ab initio, for consequential relief of
perpetual injunction restraining the Respondents from alienating and from
encumbering the suit schedule property in any manner. The frame of the suit is
for more than one relief and the suit schedule consists of an extent of 8.47 ares
(1013 sq. yds.) in Re-Sy. No. 216/6, Block No. 19 of Village Ezhamkulam. The
suit schedule reads thus:
“8.47 Ares of land to the South and West of the North Eastern 3.03
Ares in 11.50 Ares in Re-Sy. No.216/6 of Block No.19,
corresponding to old Sy. No.621/6 with the double-storeyed
residential and shop building presently bearing Panchayath
Nos.X/17, A, B and C, of Ezhamkulam Grama Panchayath”.
2. The Appellant and Respondent No. 1, on 16.01.1991, through sale deed
no. 61/1991 purchased 11.50 ares of open plot from one Sivadasan Pillai. On
04.12.2003, the Appellant, since had been working abroad, executed Power of
Attorney No. 44/2003 (Ex. A-4) concerning the property covered by the sale
deed dated 16.01.1991, in favour of Respondent No. 1. The Power of Attorney
authorized Respondent No. 1 to execute appropriate deeds, if necessary, sale
deeds, and receive sale consideration for and on behalf of the Appellant. The
Power of Attorney (Ex. A-4) creates the relationship of the principal and the
agent between the Appellant and Respondent No. 1. Ex. A-4 recites that sale
can be effected, subject to necessity and accounting for sale proceeds. On
18.01.2008, the Appellant and Respondent No. 1, contrary to the principal and
agent relationship, executed a sale deed in favour of one Joemon and his wife.
Thus, upon the sale of a portion of the open plot, the Appellant/Plaintiff retained
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an extent of 8.47 ares as described in the suit schedule. On 16.04.2008,
Respondent No. 1, by way of sale, transferred the suit schedule in favour of her
husband/Respondent No. 2 vide sale deed no. 345/2008 (Ex. A-5). On
26.02.2009, the Appellant filed a petition before the Taluk Legal Services
Authority for redressal of the dispute, i.e., the alienation of the Appellant’s half
share in the suit schedule in favour of Respondent No. 2. The Appellant did not
get any relief from the Legal Services Authority; hence, on 11.05.2011, the
Appellant filed the Suit for the reliefs noted above.
II. P LAINT A VERMENTS :
3. The Appellant has resided abroad since 1966 and worked as a Nurse in
Bahrain, the U.K. and the U.S.A.. She claims to have remained as a spinster.
From the earnings as a Nurse, the Appellant has supported Respondent No. 1
in more than one sense. The plaint refers to a few circumstances claiming
exclusive ownership of the property purchased through sale deed nos. 61 and
877 of 1991. We are not referring to these averments for the appeal, which is
confined to the relief granted by the Trial Court, i.e., half share in the suit
schedule property. Having regard to the Appellant working overseas,
Respondent No. 1 was authorised to act as the Appellant's agent, depending
upon necessity. Contrary to the Power of Attorney dated 04.12.2003 (Ex. A-4),
the Appellant in her capacity as the owner of the property, sold an extent of 3.03
ares in favour of Joemon and his wife. Thereafter, Respondent No. 1, through
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Ex. A-5, i.e., sale deed dated 16.04.2008, sold the property retained by the
sisters to Respondent No. 2. The Appellant averred that the agency granted
was withdrawn when the Appellant joined in the execution of sale deed No. 59
of 2008 in favour of Joemon and his wife. Therefore, the sale deed dated
16.04.2008 (Ex. A-5), executed after implied revocation, is void ab initio . Ex. A-
5 was executed without, both, the Appellant's knowledge, and the transfer of
sale consideration by Respondent No. 2 to Respondent No. 1; thus, no right or
title to the extent of half share of the Appellant is created or transferred in favour
of Respondent No. 2. The sale unsupported by consideration is illegal and void
ab initio. The cause of action for filing the suit arose when the Appellant moved
the Legal Services Authority on 26.02.2009. Knowledge of the execution of Ex.
A-5 is stated to have been acquired about that time.
III. A VERMENTS IN W RITTEN S TATEMENT OF R ESPONDENT N OS . 1 & 2:
4. The Respondents admit the relationship. The Appellant has been a U.S.
citizen since 1991. It is admitted that the Appellant retired from service in 2007
and stayed and lived with Respondent Nos. 1 and 2 between 2007 and 2009.
After filing the suit, the Appellant again left for the U.S.A. The sale deed dated
16.04.2008 (Ex. A-5) in favour of Respondent No. 2 was executed when the
Appellant resided with the Respondents in India. Respondent No. 1 admits the
joint execution of the sale deed dated 18.01.2008 (Ex. A-3) in favour of Joemon
and his wife. It is explained by averring that the total consideration received as
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sale consideration under Ex. A-3 was Rs. 7,00,000/-, and a sum of
Rs. 2,00,000/- was paid in foreign currency to the Appellant. The balance of
Rs. 5,00,000/- was deposited in the joint account of Appellant and Respondent
No. 1. Respondent No. 1 asserts to have the authority of an agent given through
Power of Attorney dated 04.12.2003 (Ex. A-4); therefore, the sale deed dated
16.04.2008 (Ex. A-5) in favour of Respondent No. 2 is valid and binds the
Appellant. In fine, the defense taken by Respondent No. 1 is that she has the
authority to act on behalf of the Appellant. The Appellant received sale
consideration in the previous transaction. The suit is filed beyond the limitation
period and, therefore, is liable to be dismissed.
5. The Trial Court framed the following issues for consideration:
1. “Whether the plaintiff is entitled to a declaration as prayed for?
2. Whether the plaintiff is entitled for recovery of possession of plaint
scheduled property?
3. Whether plaintiff is entitled for ½ right over plaint scheduled
property?
4. Whether the plaintiff is entitled for separate possession of her share
by metes and bounds?
5. Whether the sale deed No.345/08 is liable to be set aside?
6. Whether the plaintiff is entitled for a permanent prohibitory
injunction as prayed for?
7. Relief and cost.”
6. The Appellant marked Exs. A-1 to A-11 and examined P.Ws. 1 to 5.
Respondent No. 1 was examined as D.W.1 and Exs. B-1 to B-3 were marked
on behalf of Respondent No. 1. On third-party evidence, Exs. X-1 to X-12 were
marked.
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7. The Trial Court, on examination of oral and documentary evidence,
rejected the claim of the Appellant for declaration as the owner of the entire suit
schedule property but accepted the alternate prayer for partition and decreed
the suit accordingly. The Trial Court on whether the authority granted in favour
of Respondent No. 1 continued to remain until the execution of the sale deed
dated 18.01.2008 (Ex. A-3), as late as 16.04.2008, when the sale deed (Ex. A-
5) was executed by Respondent No. 1 in favour of Respondent No. 2, held that
the execution of Ex. A-3 by the Appellant as a co-executant along with
Respondent No. 1 results in revocation of power granted in favour of
Respondent No. 1. The finding recorded is that the agency in favour of
Respondent No. 1 by an act of implied revocation stood terminated.
Consequently, it is held that the alienation of the Appellant’s half share by the
Respondents in the suit schedule property is illegal and not binding on the
Appellant. Adverting to the absence of consideration under Ex. A-5, the Trial
Court relied on the categorical admission of Respondent No. 1 as D.W.1 and
noticed that no consideration was passed from Respondent No. 2 to
Respondent No. 1 and the sale in Ex. A-5 is void ab initio . On the above
consideration, the Trial Court decreed the suit for partition, and the operative
portion of the judgment reads thus:
“1. Plaintiff ½ right over plaint scheduled property is hereby declared.
st
2. The Ext.A5 sale deed No.345/08 executed by 1 defendant in favour
nd
of 2 defendant is void, hence set aside.
3. Intimate the cancellation of Ext.A5 to SRO concerned.
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4. The plaintiff is entitled for partition of plaint scheduled property as
follows:-
a) Plaintiff is entitled for ½ share right over plaint scheduled
property.
b) Plaintiff is entitled for separate possession of that share by metes
and bounds.
c) File final decree application within 3 months from date of the
preliminary decree.
d) Plaintiff is entitled for recovery of that ½ share after final decree.
5. Defendants are hereby restrained by a permanent prohibitory
injunction from alienating plaint scheduled property, inducting
strangers into possession, encumbering the same and from
committing any act of waste therein tell ommitting any act of waste
therein effecting affecting recovery of possession of plaintiff ½ share
from plaint scheduled property.
6. The suit is kept in sine-die.
7. Considering the facts and circumstances of the case, there is no
order as to cost”.
8. Respondent No. 1, aggrieved by the Trial Court judgment, filed R.F.A. No.
405 of 2016 before the High Court of Kerala at Ernakulam. Through the
impugned judgment dated 08.03.2022, the Appeal was allowed at the instance
of Respondent No. 1. The High Court, in the impugned judgment, noted what (i)
would be the effect of a registered power of attorney authorising the agent to
execute and transfer immoveable property; (ii) whether unilateral cancellation
after the exercise of the right of alienation given under the power of attorney is
available; (iii) what would be the effect of the sale executed by the power holder
with respect to an immoveable property; (iv) what amounts to a document void
ab initio or void document; (v) whether the Trial Court is justified in decreeing
the suit of the Appellant. We may observe that the question framed by the High
Court as a preface for consideration suffers from more than one fallacy, one of
them being unilateral cancellation after exercising the right of alienation in
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favour of Respondent No. 1. To explain, it is noted at this juncture that the
chronology and the plaint averments disclose that the Appellant's implied
cancellation of power of attorney is not after execution of the sale deed dated
16.04.2008 (Ex. A-5). That apart, the Appellate Court held that the frame of the
suit is incorrect and illegal since the plaint does not pray for setting aside the
Ex. A-5 on available grounds such as fraud, undue influence, coercion, etc.
Therefore, the declaration of Ex. A-5, in the absence of available legal grounds
as void ab initio , reflects the failure of the Trial Court to appreciate the concept
of void ab initio and the underlying legal implication involved in the said concept.
The Appellant came to know of the execution of the sale deed dated 16.04.2008
(Ex. A-5) in the year 2009. The Appellant did not question Ex. A-5 till the suit
was filed on 11.05.2011. The registration of the sale deed amounts to
constructive notice to the Appellant. The suit for the relief of setting aside Ex. A-
5, it is noted, that though the plea of limitation is not taken, the suit is still barred
by limitation. The Appellate Court records in the impugned judgment that the
mere fact of the Appellant joining in execution along with Respondent No. 1 in
executing the sale deed dated 18.01.2008 (Ex. A-3) does not amount to implied
revocation. The joint execution of the sale deed will neither affect the
cancellation nor the revocation of the power of attorney. The non-receipt of sale
consideration once the sale was completed in terms of Section 54 of the
Transfer of Property Act, 1882, and Section 17 of the Registration Act, 1908,
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the vendor under a deed not supported by a sale consideration has the remedy
of receiving the sale consideration from the vendee. The legality of the sale is
not affected by the non-receipt of sale consideration. Through the impugned
judgment, the Appeal was allowed. Hence, the Civil Appeal at the instance of
the Appellant.
UBMISSIONS
IV. S :
9. We have heard the Shri V. Chitambaresh, for the Appellant and Shri
Harish Beeran for the Respondents.
10. Shri V. Chitambaresh, Ld. Senior Counsel for the Appellant, argues that
the impugned judgment is inconsistent with the case pleaded or proved by the
parties. Insofar as the finding recorded against the Appellant by the Trial Court,
she does not propose to reopen the findings accepted by the Appellate Court.
Still, denying half share to the Appellant in the suit schedule property is per se
illegal. The consideration by the impugned judgment proceeds on an erroneous
appreciation or application of Sections 207 and 208 of the Indian Contract Act,
1872 (hereinafter referred to as “the Act”). The Appellant, being the principal, is
authorised by law to expressly cancel or recall the authority granted to
Respondent No. 1. The Appellant can plead and prove that by an implied act of
revocation, which is to the knowledge of Respondent No. 1 and Respondent
No. 2, the Power of Attorney (Ex. A-4) stood cancelled. The execution of the
sale deed dated 16.04.2008 (Ex. A-5) by Respondent No. 1 in favour of
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Respondent No. 2 does not bind the Appellant and the Appellant continues to
be the half shareholder of plaint schedule. It is argued that the Power of Attorney
(Ex. A-4) is one in the nature of necessity enabling Respondent No. 1 to act in
accordance with the conditions stipulated. One of the conditions is that the
Appellant was absent from the country when the requirement to execute arose.
The Appellant retired in 2007 and was in India on the date of execution of the
sale deed dated 18.01.2008 (Ex. A-3) in favour of Joemon. For the above
reasons, Respondent No. 1 ceased to be an agent of the Appellant and, hence,
Ex. A-5 was executed without authority.
10.1 It is argued that one of the essential ingredients of a legal and valid sale
is receipt of sale consideration by the vendor. Under Section 55 of the Transfer
of Property Act, 1882, to constitute a sale, the conveyance must be for
consideration, and the vendor must receive the sale consideration. The receipt
or non-receipt of consideration insofar as parties to the document present more
than one remedy, a third party to Ex. A-5 can raise the plea of Ex. A-5 being
illegal and void ab initio. The admission, on non-receipt of sale consideration,
goes to the root of the legality of Ex. A-5.
11. Shri Haris Beeran, Ld. Counsel for the Respondents, argues that,
patently, the suit is barred by limitation. The plea of implied revocation of
authority vis-à-vis Respondent No. 1 is illegal and not available in the facts and
circumstances of the case. The impugned judgment examined each of the
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circumstances stated in the case, the evidence adduced by the parties together
with the contemporaneous conduct and dismissed the suit of the Appellant.
Once it is admitted that power of attorney is executed by the Appellant, thereby
Respondent No. 1 is the agent, recalling the said power of attorney must be
established as a matter of fact. The joint execution does not amount to the
implied revocation of the authority of Respondent No. 1 as the power of attorney
of the Appellant. Ld. Counsel fairly states that keeping in perspective the view
1
expressed by this Court in Amar Nath v. Gian Chand & Anr. , the power of
attorney need not be cancelled by a registered deed alone. We find it convenient
to excerpt the following paragraph from the above citation, and it reads thus:
| “83. We need not pronounce on the question whether the power | |
|---|---|
| of attorney being registered, it could be cancelled only by a registered | |
| power of attorney. This we say as even in the absence of a registered | |
| cancellation of the power of attorney, there must be cancellation and | |
| it must further be brought to the notice of the third party at any rate as | |
| already noticed. Such a cancellation is not made out”. |
12. Given the above-accepted position in law, we need to examine the
method and mode of recalling the power of an agent. In the circumstances of
this case, whether the implied revocation is made out. In the case on hand, the
controversy centers around the implied revocation of the agency. In this
judgment, we are not dealing with a power of attorney coupled with interest and
revocation, etc. The Appellant accepted the sale deed dated 16.04.2008 (Ex. A-
5), and the total sale consideration of her share was said to have been received
1
(2022) 11 SCC 460.
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at the time of execution of the sale deed dated 18.01.2008 (Ex. A-3). The
consideration by the Appellate Court is legal and valid, and the jurisdiction of
this Court under Article 136 of the Constitution of India is not made out. It is
argued and brought on record that the Respondents are in a settled possession
of the suit schedule property by constructing a house. The house in existence
is constructed by Respondent No. 2. The Appellant is not entitled to partition of
the constructed portion.
V. A NALYSIS
13. We have perused the record and noted the rival submissions.
14. The admitted circumstances of the case are (i) the relationship between
the Appellant and Respondent No. 1, and Respondent No. 1 and Respondent
No. 2; (ii) the employment of the Appellant as a Nurse in Bahrain, the U.K. and
the U.S.A.; (iii) purchase of suit schedule property in 1991 by the Appellant and
Respondent No. 1; (iv) execution of the Power of Attorney dated 04.12.2003
(Ex. A-4); (v) execution of the sale deed dated 18.01.2008 (Ex. A-3) in favour of
Joemon; (vi) execution of sale deed dated 16.04.2008 (Ex. A-5) by Respondent
No. 1 in favour of Respondent No. 2. The Appellant and Respondent No. 1 are
co-owners of the schedule property. Respondent No. 1 was the Appellant's
agent. Therefore, the question for decision is whether the execution of Ex. A-3
amounts to implied revocation under Section 207 read with Section 208 of the
Act.
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15. We examine the plea of limitation raised by the Respondents. The
Respondents’ case is that the suit was filed on 11.05.2011, and in effect, the
suit seeks to set aside the sale deed dated 16.04.2008 (Ex. A-5). The suit was
filed beyond the limitation period and should have been dismissed. Limitation is
a question of law and fact. The period of limitation and the time from which the
period begins to run, depend on the article in the schedule appended to the
Limitation Act of 1963. The case falls under “Part III – Suits Relating to
Declarations”. Article 58 reads thus:
| Description of | Period of | Time from which period | ||||||
|---|---|---|---|---|---|---|---|---|
| suit | Limitation | begins to run | ||||||
| To obtain any other<br>declaration | Three<br>years | When the right to sue first<br>accrues. |
15.1 The words “when the right to sue first accrues” have been interpreted and
held by this Court in Smt. Neelam Kumari & Anr. v. U.P. Financial
2
Corporation . The starting point for the limitation in the case of setting aside
sale deeds has two limbs: the date of execution and the date of knowledge.
There is no difficulty in applying the period of limitation expiring three years from
the date of execution, provided that the Appellant had knowledge of Ex. A-5 on
the date of registration and the right to sue first accrued. The Respondents, in
the circumstances of the case, failed to establish the Appellant’s knowledge of
the execution of Ex. A-5. In the final analysis, Ex. A-5 is held as without authority
2
AIR 2009 Utt 5.
13
and void. The applicability of limitation has a different perspective. So, the
starting point is when the right to sue first accrued to the Appellant. The admitted
case of the Respondents is that the Appellant is a US citizen and she stayed
abroad. Therefore, unless it is clearly established as a fact that the Appellant
had knowledge of Ex. A-5, it cannot be inferred that the Appellant had
contemporaneous knowledge of Ex. A-5 and the limitation started running from
the date of execution of Ex. A-5. That apart, another fact is whether the said
exhibit is void or voidable and this depends on the implied revocation relied on
by the Appellant. From a consideration of relevant circumstances, including the
filing of a grievance petition before the Legal Services Authority and the reply of
the Respondents in the instant suit, we are of the view that the suit is filed within
three years from the date when the right to sue first accrued to Appellant and,
therefore, the suit is not barred by limitation. Even if the plea of limitation is held
against the Respondents, the outcome still depends on the relationship as
principal and agent between the Appellant and Respondent No. 1 and the
existence and effect of implied revocation pleaded to question the validity of Ex.
A-5.
16. The terms ‘agent’ and ‘agency’ have several different meanings, but in law
the word ‘agency’ is used to connote the relationship which exists where one
person has the authority or capacity to create a legal relationship between a
person occupying the position of principal and third parties. The relationship of
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agency arises whenever one person, called the agent, has the authority to act
on behalf of another, called the principal, and consents to act as such. The
relationship has its genesis in a contract, as has been held in Syed Abdul
3
Khader v. Rami Reddy & Ors . The case of Respondent No. 1 is that the Power
of Attorney dated 04.12.2003 (Ex. A-4) is the contract authorising her to act as
the power of attorney holder of the Appellant. The sale deed dated 16.04.2008
(Ex. A-5) is not for consideration, but on the contrary, it imposed restrictions on
the discretion of Respondent No. 1. We are not invited to interpret these clauses
and, hence, we do not examine them. The Appellant executed Ex. A-4 in favour
of Respondent No. 1. In law, the Appellant is bound by the acts performed by
Respondent No. 1 in due course and under the authority given by the Appellant
to Respondent No. 1 through Ex. A-4. The Appellant, when she was residing
with the Respondents in India post-retirement, executed the sale deed dated
18.01.2008 (Ex. A-3) in favour of third parties. The co-execution of Ex. A-3 is
not disputed, and Respondent No. 2 is one of the witnesses to Ex. A-3. Sections
207 and 208 of the Act read thus:
“207. Revocation and renunciation may be expressed or
implied. —Revocation and renunciation may be expressed or may be
implied in the conduct of the principal or agent respectively.
208. When termination of agent’s authority takes effect as to
agent, and as to third persons .— The termination of the authority of
an agent does not, so far as regards the agent, take effect before it
becomes known to him, or, so far as regards third persons, before it
becomes known to them”.
3
AIR 1979 SC 553.
15
17. The Act provides for express or implied revocation and renunciation of
agency. Section 207 provides for express or implied revocation or renunciation.
Section 208 sets out the effective date of termination of authority with regard to
an agent and a third person. Let us refer to a few citations dealing with the
revocation of agency.
18. This Court, in Deb Ratan Biswas & Ors v. Most. Anand Moyi Devi &
4
Ors. dealt with a case of signing of compromise by the principal/defendants
during the existence of the agency, and if such independent signing amounts to
implied revocation of power of attorney executed in favour of the attorneys.
Relevant paragraphs read thus:
| “9. The principal Pushpa Biswas and Apurva Kumar Biswas have | |||
|---|---|---|---|
| signed the compromise for partition of the property, which in our opinion | |||
| in law amounts to implied revocation of power of attorney in favour of | |||
| Dr. Sanjeev Kumar Mishra vide Illustration to | Section 207 | of the Indian | |
| Contract Act. Pushpa Biswas and Apurva Kumar Biswas cannot be | |||
| allowed to say that their own act of signing the compromise petition | |||
| was collusive and fraudulent. |
xxx
xxx
11. The principal is not bound to consult his attorney before signing
a compromise petition.
12. It is well-settled that even after execution of a power of attorney
the principal can act independently and does not have to take the
consent of the attorney. The attorney is after all only an agent of the
principal. Even after executing a power of attorney the principal can act
on his own”.
4
2011 SCC OnLine SC 633.
16
19. The High Court of Punjab and Haryana in Amrik Singh (deceased)
represented by his legal heirs Darshan Singh & Ors. v. Sohan Singh
5
(deceased) by his legal heirs Gurudev Kaur & Ors. , tracing the power of
revocation under Section 207 of the Act, held that the revocation of the power
of attorney could be either express or implied as provided under Section 207 of
the Act.
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20. In N. Shivkumar & Anr. v. R. Peter Pereira , the Madras High Court dealt
with a case where the principal executing a settlement deed in the subsistence
of a power of attorney, and held as under:
| “23. WhenSec.207 preceding Sec.208 of the Act provides for | |
|---|---|
| revocation and renunciation by even an implied conduct of the | |
| principal, there is no impediment for the principal to deal with the | |
| property that belongs to the principal. When a settlement deed came | |
| to be executed on 18.04.2007, and the same was also duly registered | |
| before the concerned Sub Registrar, it was an implied act of | |
| revocation/renunciation of the Power of Attorney dated 29.05.2002 | |
| executed in favour of the 1st Appellant. Therefore, on the date of the | |
| execution of the settlement deed by Thelma Cecelia Pereira on | |
| 18.04.2007, it resulted in an implied revocation of the Power of | |
| Attorney dated 29.05.2002 and the 1st Appellant had no authority to | |
| deal with the property of the principal on or after 18.04.2007. |
xxx
xxx
| 25. Though the counsel for the Appellants would also draw any | |
|---|---|
| attention to Ex.B.3 Will under which Thelma Cecelia Pereira | |
| bequeathed the suit property to the defendant, the said Will also gets | |
| superceded and impliedly revoked by the testatrix, by executing a | |
| settlement deed in favour of her brother, Raymond Pereira. |
xxx
xxx
5
1987 SCC Online P&H 891.
6
S.A. No.1206 of 2014 (Madras HC).
17
| 27. A con-joint reading of Sections 201 and 207 of the Contract | |
|---|---|
| Act and especially the illustrations appended to these Sections, I am | |
| of the view that the principal viz., Thelma Cecelia Pereira was well | |
| within her right and authority to deal with the suit property, dehors the | |
| Power of Attorney and during its subsistence and the moment the | |
| settlement deed was executed by the principal herself, it resulted in an | |
| automatic implied termination of the Power of Attorney given to the | |
| power agent. |
(Emphasis supplied) ”
21. In the absence of a particular mode suggested for revocation of the
authority of an agent, the manner adopted by the principal to revoke the
authority of the agent must be one which clearly and unequivocally
communicates to the parties i.e., to be affected by such revocation, that the
agent’s authority has been withdrawn. In the framework of Sections 207 and
208 of the Act, the revocation/renunciation of authority may be made by express
words or may be implied from the words and conduct of the principal, viz. , which
is inconsistent with the continuance of the agency. This is one facet of
renunciation or revocation of authority of an agent; the other facet is governed
by Section 208 of the Act. Section 208 provides for the effective time and date
of termination of the agent’s authority and third parties. From a plain reading,
Section 208 infers and gives effect to revocation upon the twin conditions being
satisfied, (i) communication to the agent and (ii) knowledge to a third party i.e.,
one who deals with or is likely to deal with the agent. Then, the revocation of
authority becomes known to the agent and the said third parties. In other words,
an idea in the mind of the principal to revoke cannot be construed as implied
revocation or renunciation of agency. There ought to be an act or conduct of the
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principal which implies that the agency is revoked or withdrawn. If the revocation
is expressed, such as by publication in newspapers, public notice or
advertisement, communication to the agent etc., the parties who deal with the
agent have a reasonable opportunity to know the revocation of agency by the
principal. Two stages of revocation are, firstly , one dealing with the agent, and
secondly , one which applies to the third parties. For attracting the consequence
of revocation to either of the situations, the revocation of the agent’s authority is
made by the principal in a manner that clearly implies that the principal has
withdrawn the authority to act on his or her behalf by the agent. Followed by
knowledge to third parties, let us examine the circumstances of the case on
whether implied revocation coupled with communication is established.
22. The Power of Attorney (Ex. A-4) was executed on 04.12.2003. The
Appellant, on 30.11.2007, claims to have retired from service and settled in
India. A power of attorney confers power for the execution of deeds in situations
of necessity, including in the absence of the Appellant in the country. From the
record, it can be noted that from 2007 onwards, the Appellant was not entirely
absent from India or residing exclusively in the U.S.A. Therefore, the Appellant
and Respondent No. 1 executed the sale deed dated 18.01.2008 (Ex. A-3).
Respondent No. 2 is one of the witnesses to Ex. A-3. The execution of sale
deed dated 16.04.2008 (Ex. A-5) is inconsistent with and contradictory to the
power granted to Respondent No. 1 in Ex. A-4. This is an explicit conduct of the
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Appellant to act for herself on the share she holds in the property purchased in
1991. In Deb Ratan Biswas (supra) , this Court held that the signing of a
compromise by the defendants themselves would amount to implied revocation
of power of attorney. In a case where the principal chooses to act for himself,
particularly to the agent's knowledge and a person to be affected, then it can be
held that Section 207 of the Act is attracted. We have no doubt in holding that
the Appellant, in terms of Section 207, impliedly revoked the authority of
Respondent No. 1, and as required by Section 208, Respondent No. 2 had the
knowledge of the independent dealing with the property by the Appellant.
Therefore, the revocation takes effect on 18.01.2008. Ex. A-5 was executed on
16.04.2008. Thus, with the operation of implied revocation of authority,
Respondent No. 1 cannot act as an agent of the Appellant and, hence, the sale
deed insofar as the Appellant’s share in the suit schedule is held void ab initio.
23. The ancillary argument is on non-receipt of consideration under Ex. A-5.
Let us refer to the evidence of D.W.1, which reads as follows:
“(Q) No. Immediately after the marriage, I sold the property to my
husband. On 16-4-08, after the marriage, the property was sold to the
husband for consideration. Agreed to pay an amount of Rs.80,000 as
consideration. But not given. We are wife and husband. The
consideration other than what is stated in the deed has not been
given? (Q) No. When the property was sold to the husband the plaintiff
was in the native place”.
24. Evidence of D.W.1 is clear that Ex. A-5 is not supported by consideration.
The Appellant is a third party to Ex. A-5. For the view, we have taken on implied
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revocation of Ex. A-4 by the Appellant, the deliberation of this issue does not
influence the conclusion. Therefore, we merely express our agreement with the
findings recorded by the Trial Court on this behalf.
25. As already noted, the impugned judgment excerpted a slew of unavailable
questions and answered them in an axiomatic way. Since the findings are
conflicting, we have, within our jurisdiction under Article 136 of the Constitution
of India, examined the record and the contentions urged by the parties. We are
convinced that the impugned judgment is unsustainable, and consequently, the
appeal succeeds and is allowed. The judgment and the decree of the Trial Court
are confirmed.
25.1 We take note of the close relationship between the Appellant and the
Respondents, and that the Respondents have constructed the house and reside
in the house. Admittedly, the Appellant is not successful in her claim for half
share in the house constructed in the plaint schedule. Therefore, it would be
legal and equitable to direct the Trial Court first to explore the possibility of
determining the market value of the Appellant’s half share in the suit schedule
property and subject to the Respondents paying the current market value to the
Appellant towards her half share, a final decree be passed accordingly. If the
parties do not arrive at a consensus on the current market value, the operative
portion in the judgment and decree of the Trial Court could be put to final decree
proceedings and execution in accordance with the law. In such an event, the
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Appellant compensates the Respondents for possessing the constructed area
along with her half share in the plaint schedule.
26. Civil Appeal is allowed. No order as to costs.
..………...................J.
[ C.T. RAVIKUMAR ]
...……….................J.
[ S.V.N. BHATTI ]
NEW DELHI;
JULY 9, 2024.
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