Will Power Of Attorney Deed Executed By Several Persons Get Automatically Terminated On Death Of One Of Them? Madras HC Answers
The Madras High Court observed that a power of attorney deed executed by several persons, which cannot be said to be coupled with interest, is not automatically terminated on the death of one of the principals.
The Court said that the question of termination was terminated on the death of one of the principals and the question of termination would necessarily depend on the facts and circumstances of each case.
The Court was hearing an Appeal after a reference was made by a Single Judge of the Court by order where the Single Judge had referred to the question ''Whether the General Power of Attorney executed jointly by more than one Principal will survive even after the death of one of the Principals and if so, under what circumstances?'' to the larger bench.
The bench of Justice R Subramanian and Justice R Sakthivel observed, “…a power of attorney deed executed by several persons, which cannot be said to be coupled with interest, is not automatically terminated on the death of one of the principals.”
Senior Advocate Srinath Sridevan assisted the Court and Senior Advocate V Raghavachari appeared for the Respondent.
The bench noted that the Single Judge felt compelled to reserve the question for consideration by a Division Bench since he felt that the law on the point was a little nebulous and it requires a clarification by a Larger Bench of the Court.
The Court said that it cannot exhaustively elucidate various circumstances, under which, the power will terminate or survive. The Court laid down broad guidelines such as, “The termination will necessarily be,
(i) dependent on the facts and circumstances of each case.
(ii) The intention of the parties at the time of execution of the power which could be gathered either from the recitals in the instrument or from other circumstances that are placed before the Court, will play an important role in the decision making process.
(iii) If it is shown that the intention of the parties was that the power was to continue even after death of one of the executants as laid down by the Calcutta High Court in Re Sital Prosad's (supra) and this Court in Garapati Venkanna's case, (supra), the agency will continue till the object sought to be achieved is complete.
(iv) If it is shown that the principals had specific interest, independent of each other, like two joint owners executing a power for sale of the property, if their share is specific, the power will stand terminated in respect of the joint owner who dies. If the interest is unascertainable like that of an interest in the coparcenary of a joint family and the intention is shown to be to survive even…”
The Court further observed, “Termination of the power on the death of one of the principals is not automatic. It will depend on the facts and circumstances of each case and the recitals in the document as well as the object that is sought to be achieved.”
Accordingly, the Court dismissed the Second Appeal.
Cause Title: K.A.Meeran Mohideen v. Sheik Amjad