POWER OF ATTORNEY A Power of Attorney means the power or authority given to a person (agent) by an individual (principal) to act on his behalf or on behalf of a group of individuals in business matters or any other matter. It plays a vital role in transferring the lawful ownership of immovable property like land, building, water source, from one person to another. The person who holds the power is called the Power of Attorney Holder. He is employed by the principal to take care of his dealings with third persons. A person competent to contract can execute a power of attorney. He can appoint one person or several persons to act on his behalf. Where several persons are appointed as attorneys, it is advisable to mention as to how they will act jointly or independently. If this is not mentioned, then they are at liberty to act jointly. Power of Attorney, generally speaking, is of two types. Power of Attorney for a single specific purpose is known as “special power of attorney” and the one involving more than one work or transaction is called “General Power of Attorney.” The duration of a special power of attorney may be for a particular period or for an indefinite period until the task is completed. A general power of attorney may continue to be in force until it is revoked or by death of either party. A registered power of attorney can be revoked by a cancellation deed. Though, in general, a power of attorney is revocable, it cannot be done so in matters pertaining to debt security till the debt is cleared even though the debtor is not alive. It can be revoked if the principal becomes of unsound mind or he is declared insolvent. It cannot be revoked if it is made irrevocable. However it should be registered by paying applicable stamp duty. Power of Attorney attracts various provisions of The Indian Stamp Act, Powers of Attorney Act, Registration Act, The Indian Contract Act, and Indian Partnership Act, and The Indian Evidence Act. A power of attorney is divided into ten categories according to the stamp duty payable. It is significant to note that a power of attorney by a promoter to a builder for construction of apartments under flat ownership scheme, attracting stamp duty according to the value of the property, has been added by an amendment to the Stamp Duty Act. In Karnataka, presently stamp duty is 2% plus registration charges 2% for the promoter GPA. A power of attorney is given for a court case, for appointing one attorney in place of another, for collection of debts and for admitting execution, and a general power of attorney is given for selling shares, to execute a sale deed, to prepare a layout and sell plots, to raise money through mortgage of property, to recover rents and many other acts.

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