A power of attorney is an instrument allows someone else instead of yourself does some general act or a particular act. You would want to make a power of attorney when you want someone else to act on behalf of you, but at the same time, safeguarding your interests. The acts so done by an attorney would be as if you are doing the acts by yourself but through him.
In simple words, a power of attorney is just a delegation of power by one person to another who in turn, acts as his agent. There is a principal-agent relationship between them. Ultimately the principal is still in control of his/her affairs as (s)he is merely delegating higher powers to the attorney under a legal instrument.
Power Of Attorney In Delhi
You can make a power of attorney in Delhi on a Rs 100 Stamp Paper for blood relatives while others need to pay Stamp duty equivalent of sale deed and register it in Delhi. Unless the power of attorney does not involve a transfer of property rights, there is no compulsion to register the power of attorney in any Sub-Registrar office within your jurisdiction. A simple notarisation of the power of attorney would deem it legally valid.
Thus, a power of attorney is a simple yet powerful document helping you to simplify things by delegating your powers to another and allowing them to make wise and well thought decisions on your behalf as if you were present while making those decisions.
Who Can Make A Power of Attorney?
Anyone after attaining the age of maturity and with a sound mind would be qualified to make a POA. And only a major can be appointed as an attorney.
When To Use POA?
A power of attorney can be used in various circumstances. Some of the most common examples of using a power of attorney are as follows-
Power Of Attorney By Companies
Many companies resort to power of attorney deeds to delegate their powers that are needed in the day to day administration. A company being an artificial person, all acts done by the company are done through the attorney or agent. In the case of companies, unless the power of attorney document expressly implies it, sub-delegation of the powers conferred to the attorney shall not be allowed.
A power of attorney is valid till such time it is revoked by the principal or by the death of either of the parties.
Firstly, you need to decide whether you want to make a general power of attorney for all purposes or a special power of attorney for any special intended purpose.
A power of attorney could also be revocable or irrevocable. An irrevocable power of attorney operates beyond the lifetime of the grantor and should be made after a lot of thought and deliberation. A revocable power of attorney shall be revoked at the behest of the principal.
A word of caution would be to appoint a trustworthy person as your attorney. The attorney should know the scope of his powers to prevent any future disputes.
|The Hon’ble Supreme Court of India on 11.10.2011 in ‘Suraj Lamps and Industries Pvt. Ltd V. State of Haryana [SLP(C) 13917 of 2009] has held that there cannot be a transfer of title through Power of Attorney transactions and that a registered sale deed/conveyance is the valid mode in transfer of title in immovable property.|
How To Make It Legally Valid?
- Both the principal and attorney should be legally competent to enter into a power of attorney i.e, should be of sound mind and above the age of 18 years.
- The power of attorney document should contain the signatures of both the parties. In case they are illiterates, their thumb impressions should be taken.
- 2 competent witnesses are required to sign the POA document
- The power of attorney document shall be made on Stamp paper of appropriate value depending on the place where it is made.
- Lastly, both the parties shall retain a copy of the power of attorney to avoid any anticipated disputes that might arise.
Revocation of Registered Power Of Attorney
The power of attorney document should mention clearly when and in what circumstances it stands revoked, unless the power of attorney is mentioned as irrevocable.
However, if the document does not mention the conditions for revocation and is not an irrevocable one, it can still be revoked by executing a document revoking it and also placing an advertisement in the newspaper stating that the power of attorney document has been cancelled. A copy of the document shall also be served on the attorney to make him aware of his cancelled status.
A registered power of attorney can also be revoked by a registered deed of cancellation. A notice should be sent to the attorney to let him know of the cancellation. An additional precaution could be made publishing the same in the newspaper to let others know as well.
Frequently Asked Questions (FAQ’s)
- Do I lose all my rights when I make a power of attorney in favour of a person?
No. You would still retain all the original rights that you had.You are just delegating your powers in favour of some person who will act on your behalf.
- Can a Letter of Authority be a substitute for a Power of Attorney?
A Letter of Authority is generally used for smaller and specific tasks and does not have a legal validity. For e.g. to collect a cheque book from a bank.
For more bigger and proper transactions, a power of attorney is more suitable and has the legal advantage of being notarised. For e.g. to operate a bank locker.
A major difference between a Letter of Authority and a Power of Attorney deed is that, in the former’s case, one person authorises another person to work “under his control” and supervision whereas, in the latter, there is greater independence as the attorney acts “on behalf” of the attorney. However, both the documents have limitations as the holders cannot work beyond the scope of the documents.
Create POA Online With LegalDesk
To create POA in Delhi, all you have to do is click the button below and fill in the details in the form that you will be directed to. Once you do the form filling, your POA document is ready to download. To get it printed and delivered on Stamp paper, you will have to place an order for home delivery. In case, you prefer to use your own format of Power of Attorney, you can still use our Print ‘n’ Deliver service to get the document printed on Stamp paper and delivered.