General Power Of Attorney Terminates On Principal’s Death, Unregistered Sale Agreement Does Not Conf

In a significant ruling, the Supreme Court of India has reaffirmed that a General Power of Attorney (GPA) terminates upon the death of the principal and that an unregistered sale agreement does not confer ownership rights over immovable property.

 

The case, M. S. Ananthamurthy & Anr. vs. J. Manjula Etc. [SLP (C) Nos. 13678-13619 of 2020], involved a land dispute in Chunchaghatta Village, Bangalore. The appellants claimed ownership based on a GPA and an unregistered sale agreement from 1986, while the respondent asserted her rights through registered sale and gift deeds executed between 2003 and 2004. The trial court ruled in favor of the respondent, and both the Karnataka High Court and the Supreme Court upheld this decision.

 

Key Takeaways from the Judgment

 

1. GPA Does Not Confer Ownership: A GPA is merely an instrument of agency. It ceases to have legal validity upon the death of the principal, making any subsequent transactions null and void.

 

 

2. Unregistered Sale Agreement is Invalid: Ownership of immovable property cannot be transferred through an unregistered agreement under the Transfer of Property Act, 1882, and the Registration Act, 1908. A registered conveyance deed is mandatory.

 

 

3. Limitation Barred the Claim: Property disputes must be initiated within the statutory three-year limitation period under the Limitation Act, 1963. The appellants failed to act in time, rendering their claim unsustainable.

 

 

 

With this ruling, the Supreme Court has once again reinforced the importance of proper legal documentation in property transactions. It serves as a crucial reminder that informal arrangements, even if longstanding, hold no weight in the eyes of the law without proper registration.



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