How To Cancel a Power of Attorney In India?
How to Cancel a Power of Attorney in India?
1. What is Power of Attorney (PoA)?
A Power of Attorney is a legal document where one person (the principal) authorizes another person (the agent or attorney) to act on their behalf in specified matters.
It can be general (broad powers) or special (specific powers).
2. When and Why Can PoA Be Cancelled?
The principal may want to cancel PoA because:
Loss of trust in the agent
Agent is misusing authority
The purpose for which PoA was created is fulfilled or no longer relevant
Death or incapacity of the principal or agent
Revocation under law
3. Legal Framework for Cancellation
Indian Contract Act, 1872 (Section 202):
It recognizes the revocation of agency (PoA being an agency relationship) by the principal at any time before it is exercised, unless there is an agreement to the contrary.
Indian Registration Act, 1908:
For PoA registered with sub-registrar, revocation should also be registered.
4. Steps to Cancel Power of Attorney
Step 1: Execute a Revocation Deed
The principal must draft a Deed of Revocation clearly stating the cancellation of the PoA.
It should mention the details of the original PoA, date of execution, parties involved, and clearly revoke all powers given earlier.
It must be signed by the principal and witnessed.
Step 2: Register the Revocation Deed
If the original PoA was registered, the revocation must also be registered at the concerned sub-registrar office.
This publicizes the revocation to third parties.
Step 3: Notify the Agent
The principal must inform the agent (attorney-in-fact) about the revocation in writing.
Without this, the agent may continue to act on the cancelled PoA.
Step 4: Inform Third Parties
Notify any third parties who were dealing with the agent under the PoA (e.g., banks, government offices) about the revocation to prevent misuse.
5. Effect of Revocation
After revocation, the agent’s authority ceases.
Any act done by the agent after revocation is not legally binding on the principal unless the principal ratifies it.
6. Exceptions
If the PoA was created coupled with interest (i.e., the agent has some interest in the property), the principal cannot revoke the PoA unilaterally.
7. Relevant Case Law
a) K.S. Varadachari v. Tamil Nadu Housing Board (1991)
The Court held that a Power of Attorney is revocable at any time by the principal unless it is coupled with an interest.
Revocation must be communicated to the agent and third parties.
b) Gummaluri Venkateswara Rao v. P. Satyanarayana (1964)
The Supreme Court emphasized the necessity of notifying the agent and third parties upon revocation to ensure that the PoA is effectively cancelled.
c) Lalbhai Dalpatbhai v. Bhagwandas Khimji (1966)
It was held that a PoA created for a specific purpose ceases to exist once the purpose is fulfilled and need not be separately revoked.
8. Revocation in Special Circumstances
Death or Insolvency of principal or agent automatically terminates the PoA.
Discharge by Operation of Law: If the principal becomes mentally incapacitated, PoA is generally terminated unless it is a durable Power of Attorney (applicable mostly in other jurisdictions).
9. Summary Table
| Step | Description |
|---|---|
| Execute Revocation Deed | Draft and sign a legal document revoking the PoA |
| Registration | Register the revocation if the original PoA was registered |
| Notify Agent | Inform the attorney about the cancellation |
| Inform Third Parties | Notify banks, authorities, etc., to prevent misuse |
| Check for Coupled Interest | PoA coupled with interest cannot be revoked unilaterally |
10. Practical Tips
Always keep a copy of the revocation deed.
Ensure proof of delivery when notifying the agent and third parties.
Consider legal advice to draft the revocation properly.
For unregistered PoA, revocation may be oral but written proof is advisable.
11. Conclusion
The cancellation of Power of Attorney in India is a straightforward legal process that safeguards the principal’s interests.
Proper execution of a revocation deed, registration, and communication ensures that the agent’s authority is effectively terminated.
Case laws affirm the principal’s right to revoke but emphasize the need for proper notification to make the revocation effective against third parties.
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