TITLE                                : General Power Attorney (GPA) Limitations

CASE NAME                     : Ghanshyam vs. Yogendra Rathi, 2023

DECISION DATE             : 2 June, 2023

CITATION                         : 2023 Live Law (SC) 479

DECIDING COURT         : Supreme Court of India

BENCH                              : Dipankar Datta, Pankaj Mittal

RELEVANT CASE LAWS

1.     Suraj Lamp and Industries LID vs. State of Haryana, 2011

2.     Lmtiaz Ali vs. Nasim Ahmed, 1968

3.     Asha M Jain vs. Canara Bank, 2001

4.     G Ram vs. Delhi Development Authority, 2002

5. Veer Bala Gulati vs. Municipal Corporation of Delhi, 2003

BRIEF FACTS OF THE CASE

1.     The appellant entered into an agreement to sell a property with the respondent and executed a Will and General Power of Attorney (GPA) in favour of the respondent. Despite no sale being executed, the appellant handed over possession of the property to the respondent. However, the respondent allowed the appellant to occupy only a portion of the property for a limited period of 3 months as a licensee.

2.     The respondent initiated legal proceedings against the appellant when the latter failed to vacate the premises after the specified time period had elapsed.

3.     The respondent claimed ownership of the property based on various documents, including the agreement to sell, Will, GPA, memo of possession, and payment receipts. The respondent sought to recover mesne profits and asserted his rights over the property.

ISSUE RAISED

The central issue in the case of Ghanshyam vs. Yogendra Rathi was the recognition of Wills and General Power of Attorney (GPA) as title documents or documents conferring rights in immovable property.

RATIO DECIDENDI

The court ruled that a Will or GPA does not confer legal ownership or rights in immovable property. Non-execution of necessary documents renders the GPA ineffective. Any practices recognizing these documents as conferring property rights violate the law. Only execution and registration of title documents are legally valid. In summary, a Will or GPA is not recognized as valid title documents or documents conferring property rights.

HELD

The Supreme Court, in this case held that a Will or General Power of Attorney (GPA) does not hold legal standing as title documents or documents that grant rights to any immovable property. The court has ruled that if a GPA holder fails to execute a document related to it, the GPA becomes ineffective. Any prevailing practice or tradition in a state or high court that recognizes these documents as conferring rights or titles to immovable property is against the law. Such practices cannot override the specific legal requirements of executing and registering a document of title or transfer to establish right and title to immovable property worth more than Rs. 100.