I purchased Plot in 2010 with power of attorney. The power of attorney was given to some person by the original owner. I started construction in 2016 on the plot. Now the thing is coming that the original owner is denying that he has not given power of attorney to any person and the signature done on POA is not his signature. He has decided to launch FIR in the police.
Please let me know what will be the effect on me if POA is really fake. All original documents with channels are with me. As I am the bona fide purchaser now legally, what consequences can occur? And what should I do as my advocate is telling not to fear all documents are up to date.***Please give your advice.
A Power of Attorney (POA) is a formal arrangement where one person, the principal, authorizes another person, the attorney-agent, to act on their behalf and in their name. Any act performed by the attorney within the authority of the POA is legally binding on the person granting it.
In the case presented, it appears that the seller had a valid POA at the time of transfer which was executed by the owner of the plot. It is not mandatory that only the owner can transfer their property, as any person authorized by the owner can also transfer the property through a POA.
However, it is important to note that a registered sale deed is the only valid instrument for the transfer of property. The Supreme Court of India has held in Suraj Lamp & Industries Pvt. Ltd. vs. State of Haryana that the transfer of property by executing a general power of attorney (GPOA) in favor of the purchaser is invalid.
If the sale deed has executed but the POA is found to be fake, the owner would have to compensate the bona fide purchaser in lieu of transferring the plot back to them. However, as a bona fide purchaser you conducted proper examination and possessed all relevant documents, you have a better right in the property than the seller.
If the POA was registered, it would support your right to the property in a more affirmative way because the court is bound to presume the genuineness of the registered POA. Evidence showing that the consideration was accepted by the real owner is also relevant evidence to establish your title to the property because it is treated as implied consent about the contract.
