Does an irrevocable power of attorney executed for consideration survive the death of the executant, and is consent of legal heirs required?
I am researching the legal position on the effect of death of the executant of an irrevocable power of attorney that was executed for consideration under an agreement of sale. Specifically I am looking for authoritative Supreme Court citations on two points — first, whether such a power of attorney survives the death of the person who granted it, and second, whether consent of the legal heirs of the deceased executant is necessary for the attorney holder to continue acting under it. I am currently following the Gujarat High Court judgment in Bhagwan Bhai Karambhai Bharvad vs Arogyanagar Cooperative Housing Society. Any citations or guidance would be deeply appreciated.
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Team Legistro
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3 weeks ago
The legal position on this question is fairly well settled in Indian law, both by Supreme Court pronouncements and High Court judgments, and the principle runs in favour of the attorney holder in most circumstances.
The foundational rule is found in Section 202 of the Indian Contract Act, 1872, which provides that an agency created for valuable consideration and coupled with an interest cannot be revoked by the principal. This protection logically extends to the death of the principal as well — the power of attorney does not automatically terminate upon the death of the executant if it was granted for consideration and was coupled with an interest in the subject matter. The Supreme Court in Seth Loon Karan Sethiya vs Evan John has affirmed this position.
The Delhi High Court has dealt with this question in two useful judgments. In Prem Raj vs Babu Ram, 1991 RLR 458, the court held that a power of attorney executed for consideration creating interest in property cannot be revoked or cancelled, relying directly on Section 202 of the Contract Act. In H.L. Malhotra vs Nanak Jai Singhani, 1986 RLR (Note) 89, the Delhi High Court similarly upheld the irrevocability of a power of attorney granted for consideration.
The Andhra Pradesh High Court in M. Kuppuswami Naidu vs V. Chandrasekhar Reddi and Others, decided on 17 September 2002, added an important qualification — an irrevocable power of attorney coupled with the interest of the holder remains valid after the death of the principal only to the extent of that interest and not beyond it. The court also observed that if the power of attorney is to be acted upon after the death of the principal, ratification by the legal heirs of the deceased would be required for acts falling outside the scope of that interest.
On your specific question regarding consent of legal heirs, the general position is that where the power of attorney is truly irrevocable being coupled with consideration and interest, consent of legal heirs is not strictly necessary for the attorney holder to continue exercising rights within the scope of that interest. However, as a matter of practical caution, obtaining ratification or acknowledgment from legal heirs wherever possible strengthens the title and reduces the risk of future challenges. The Gujarat High Court judgment you are following in Bhagwan Bhai Karambhai Bharvad is consistent with this broader legal position.
You may also examine the Supreme Court's observations in Suraj Lamp and Industries Pvt. Ltd. vs State of Haryana, 2012, which while dealing with GPA-based property sales clarified that GPA transactions executed before 2011 for valid consideration retain their legal standing.
⚖️ This is general legal information, not legal advice for your specific situation. For personalised advice, consult an advocate directly.
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