The Karnataka High Court has delivered a significant ruling clarifying the procedures for registering a deed that cancels a power of attorney. The court stated that a sub-registrar is not legally obligated to issue a notice to the holder of the power before registering such a cancellation deed.
Court Dismisses Petition Challenging Registration
Justice DK Singh dismissed a petition filed by North Roof Ventures Private Ltd, which was earlier known as Nitesh Housing Developers Ltd and NHDPL South Ltd. The company had challenged an order dated April 24, 2024, passed by the sub-registrar in Gandhinagar, Bengaluru.
This order had facilitated the registration of a deed cancelling a general power of attorney. The power of attorney was originally executed by HR Suresh in favour of the company concerning the Nitesh Columbia Square housing complex project.
The dispute revolves around a general power of attorney dated September 30, 2009, executed under a Joint Development Agreement (JDA) of the same date. This legal instrument was related to a land parcel measuring 4 acres and 14 guntas located in Kattigenahalli Village, Jala Hobli, within the Bengaluru North additional taluk.
Legal Basis for the Ruling
In his judgement, Justice Singh meticulously examined the relevant statutes. He noted that there is no provision in the Registration Act, 1908, or the Powers of Attorney Act, 1882, or their accompanying rules that mandates a registrar to issue a notice before registering a cancellation deed.
"However, the registrar should satisfy himself about the right of the person presenting a unilateral cancellation to seek registration," the judge observed. He elaborated that the registrar may refuse to register a unilateral cancellation of previously registered instruments unless it is supported by the principal's concurrence or by a valid order from a competent court.
The court emphasized the administrative nature of the registrar's role in this context. "Where there are no statutory rules for giving the notice by the registrar before registering the deed of cancellation, the registrar is not required to give notice to the holder of the power of attorney," Justice Singh stated. He further clarified that the registrar is not empowered to adjudicate titles or resolve disputes between parties regarding their obligations under the power of attorney.
Parties Directed to Seek Civil Remedy
The High Court made it clear that the validity of the power of attorney cancellation is a matter to be decided by a civil court, not through a writ petition. The petitioner, North Roof Ventures, had argued that Suresh was not entitled to revoke the power of attorney. Suresh, on the other hand, sought cancellation on grounds that the project remained incomplete and that the company violated the JDA by executing flat sale deeds.
Justice Singh pointed out that such substantive disputes require a detailed examination of evidence. "Whether the power of attorney was validly cancelled or the cancellation is improper or against the law has to be examined by the competent civil court... The terms of the power of attorney and other related documents are to be examined, and the evidence is required to be led; then only, the validity of the cancellation can be decided," he remarked.
Consequently, the court dismissed the writ petition, directing the involved parties to resort to the proper civil law remedy for resolving their dispute over the cancellation of the power of attorney. This ruling underscores the distinction between administrative registration functions and judicial adjudication of contractual rights.
