A Power of Attorney may be revoked by the principal in India if the attorney is unable to perform a specific task, execute a specific document, or fails to appear in court or before another authority.
When is a Power of Attorney revocable?
A Power of Attorney may be revoked by the principal if,
If the attorney violates any of the provisions and conditions of the power of attorney, the principal may cancel the power of attorney by providing written notification to that effect.
the timely performance of tasks or transactions for which a power of attorney has been granted.
When the primary settles the matter on their own, the power of attorney is no longer issued. After that, the principal has the authority to remove the power of attorney if it is no longer needed.
Laws governing the Power of Attorney:
Relevant Statutes dealing with Revocation of Power of Attorney
- The Power of Attorney Act, 1882 (2)
- The Indian Contract Act, 1872(1)
How may a Power of Attorney be revoked?
A Deed of Revocation can be signed in order to revoke a Power of Attorney. Additionally, the attorney must be a principal guarantee at the time of performing his or her duties. However, if the lawyer does not act in good faith or within the law, or if their actions could result in criminal charges. After that, the Principal is not responsible for hiring the Attorney.
Important elements of a legal notice for rescinding a power of attorney:
- Name, description, and address of the individual or individuals
- Name, description, and residential address of the notice’s sender
- Facts about the legal grounds for the action
- The detailed description of the incident which raised the cause of action
- The specific time for revoking the power of attorney
Revocation of a Power of Attorney
The following are some crucial details regarding the revocation of a Power of Attorney:
Notice: If a Power of Attorney is expressly revoked, the other party must be given sufficient notice before the revocation, regardless of whether the principal or the agent needs to do so. If such notice is not given, the person who failed to satisfy his obligation to give it will be responsible for paying any costs and damages incurred by the other party to whom the notice was due. Depending on the terms of the deed, the notice’s reasonableness varies from case to case.
A prior notice is not necessary for an implied revocation.
Unregistered Power of Attorney vis-a-vis Registered Power of Attorney:
It is possible to register or not register a power of attorney. Both of them have distinct revocation procedures, which are covered below:
Registered: Only a registered deed may be used to revoke a registered power of attorney.
Unregistered: Only an unregistered instrument of revocation may be used to revoke an unregistered Power of Attorney. Aside from that, the revocation will be null and void if no public notice of the revocation is published in local publications.
When the Power of Attorney is executed jointly: It is not lawful for one of the principals to revoke the agent’s authority without the other principals’ approval when the Power of Attorney is executed jointly by multiple parties. However, revocation by one of the agent’s principals is valid if the joint execution is carried out multiple times.
When a Power of Attorney is granted in the names of two or more individuals: If a Power of Attorney is completed jointly on behalf of many parties and one of the agents passes away, the other agents will not be able to use the Power of Attorney. On the other hand, if such execution is done jointly and severally, the remaining agents may lawfully use the power assigned to them by the Power of Attorney.
Power of Attorney given by a Firm: If a firm grants an agent a Power of Attorney, the attorney’s authority is immediately removed upon the firm’s collapse.
If a power of attorney authorises more than one agent or there are several Principals, then who has the authority to revoke it?
- If the Power of Attorney was executed jointly by several principals or agents, one principal cannot revoke the power on their own, and if one agent passes away, other agents will not be able to carry out their duties.
- Revocation is possible if the Power of Attorney was executed separately. The remaining three agents may use their authority if one of the four agents pass away and each of them executed the Power of Attorney on their own.
- If a company/ firm gives a Power of Attorney to a person: The power of attorney can be automatically revoked by dissolving that business or entity.
Conclusion
The idea of a power of attorney is crucial because it allows the principal to continue working without physically being at the location where the job needs to be done. It also gives the principal the ability to revoke the power of attorney at any time to protect his interests from the agent. Revocation is generally permissible, but there are a few instances where it isn’t. The principal or agent should be informed of these terms before granting or receiving a power of attorney.
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Written by: Avichal Singhal Adv.