According to the Supreme Court of Pakistan, a power of attorney holder may sell a property if the document expressly gives them that authority and is executed with consideration.
A registered power of attorney has the ability to transform lives. It can grant someone authority over your rights, property, and even your aspirations. However, what occurs when betrayal meets trust? This story takes us from Karachi to Islamabad, where legal rights and family ties clashed, with the Supreme Court having the last word.
A court battle over a valuable piece of land marked the conclusion of what started as an elderly man’s faith in his cousin.
A retired superintending engineer from Karachi had aspirations of establishing his future in Islamabad in the early 1990s. He had submitted an application to the Capital Development Authority (CDA) for a residential plot. As a reward for his career, this plot represented the years he had served the government.
But he was burdened by distance and age. Islamabad seemed too far away, and it was difficult to handle CDA’s paperwork. He therefore turned to his cousin, whom he greatly trusted, in 1995. He gave her extensive authority to deal with the CDA plot by signing an irrevocable power of attorney, which is a legal document that permits someone to act on your behalf.
She even settled all of her CDA debts and gave him Rs. 100,000. Bypassing his own wife and kids, he made her the official candidate for the plot in exchange. She gave her brother the plot by 1997.
The man said nothing. for over ten years.
When Shock Replaces Silence
The man learned the harsh reality in 2009 while paying a regular visit to CDA’s office. The plot that he believed to be his legacy had passed through several ownership changes, first to his cousin’s brother and then in 2003, 2011, and 2013.
Feeling deceived, he filed a civil suit for declaration, asking the court to rule that he still owned the property. Additionally, he requested an injunction, which is a court order that prevents further transfers.
Her brother and his cousin retaliated. They asserted that the payment of Rs. 100,000 and the irrevocable power of attorney demonstrated that he had long since given up his rights. They thought they owned the land because they had made financial investments and constructed on it.
Both sides were heard by the trial court. It rejected the man’s case in 2013, stating that there was no proof of fraud.
He didn’t stop there, though.
The Court Battle: Courts Split
He made a plea. The appellate court overturned the trial court’s ruling in 2015. It pointed to discrepancies, such as a stamp paper with a different date, and stated that the power of attorney did not expressly permit a sale.
Despite being shaken, the cousin’s family resisted. In 2017, they went to the Islamabad High Court, which affirmed the conclusions of the appellate court.
The legal matter was now evident:
👉 Can someone with a power of attorney sell a property without the owner’s express consent?
The retired engineer claimed his cousin fraudulently added a sale clause, abusing her position of power. His cousin and her brother insisted that they had the right to sell because of the power of attorney, which was supported by money.
What the Law Declares
Let’s dissect the main legal ideas the courts considered in order to comprehend this conflict:
A written document known as a power of attorney (POA) gives someone the authority to act on your behalf. It can cover basic duties like bill payment or more complicated ones like real estate sales.
Revocable Power of Attorney: Generally speaking, a power of attorney can be canceled or revoked. However, if the lawyer has provided consideration (money or benefit), the power becomes irrevocable unless both parties agree to cancel it, according to Section 202 of the Contract Act, 1872.
Article 95 of the Qanun-e-Shahadat Order, 1984 states that unless proven false, a registered document, such as a power of attorney, is presumed to be legitimate.
Surrender of Rights: Courts may interpret a person’s actions, payments, or nominations as a formal surrender of ownership or claims.
The Court’s Evidence
Proving fraud was crucial to the man’s case. He claimed that when he signed the power of attorney, the sale clause was not included.
The document, however, told a different tale. Out of its eighteen clauses, Clause 12 specifically granted his cousin the authority to sell the plot.
She paid all CDA dues and Rs. 100,000, according to receipts. The man never returned the money or revoked the power of attorney.
The side of his cousin argued:
Clause 3 permitted her to construct a home on her own dime.
She was able to pay for all plot expenses under Clause 7.
She was able to transfer the plot thanks to clauses 11 and 14.
All of these demonstrated that he had given up his rights. Additionally, he said nothing for 12 years following the 1997 transfer, which was a lengthy legal delay.
Previous Cases
The appellate court cited precedents such as Fida Muhammad (PLD 1985 SC 341), which established that a person holding a power of attorney must obtain express consent before selling property, particularly to close family members.
However, the cousin’s side cited another case, Muhammad Taj (2009 SCMR 114), in which the Supreme Court ruled that an attorney may sell if a power of attorney contains a sale clause and is supported by payment.
Despite the disagreements among the courts, the Supreme Court’s decision would resolve the issue.
The reasoning of the Supreme Court
The power of attorney was carefully considered by the Supreme Court.
It wasn’t your average agency contract. It gave it extraordinary powers to build, rent, live in, sell, and pay CDA installments. It was obvious that he intended to name the cousin as the nominee rather than his wife and kids.
It was more than just a casual arrangement; it was a deal because she was paying Rs. 100,000 and covering all expenses.
The man had no proof of fraud. A single page with a different date did not prove tampering, and a registered document has legal weight. His credibility was further damaged by his 12-year delay in filing the lawsuit.
The court came to the following conclusion:
The sale was expressly permitted by the power of attorney.
Section 202 made it irrevocable.
Instead of acting dishonestly, the cousin acted legally.
The Decision
The Supreme Court of Pakistan rendered its decision on August 10, 2022:
The rulings of the High Court and the appellate court were reversed.
The man’s suit was reinstated after it had been dismissed by the trial court.
The cousin’s sale was legitimate.
The man was defeated. The hope of recovering his plot in Islamabad had vanished.
Impact on Humans
It was vindication for the cousin and her brother. They thought the land was theirs, they had built it, they had paid for it.
It was heartbreaking for the retired engineer. He had lost his property because of a document he had signed decades before. His faith in his family had failed him.
The lesson is obvious to the general public:
👉 A power of attorney is more than a document. It has the power to create or destroy ownership rights. Clarity is crucial in the legal field, but trust is invaluable.
FAQs
- Can someone with a power of attorney sell a property without the owner’s express consent?
Yes, provided that the power of attorney expressly confers the right to sell and is irrevocable with consideration, as the Supreme Court decided in 2022.
- In property matters, what is a power of attorney?
It is a legal document that gives someone the authority to act on your behalf, including, if specified, selling real estate.
- What constitutes irrevocability in a power of attorney?
If consideration (such as payment) is given, the power becomes irrevocable unless both parties agree to cancel it, according to Section 202 of the Contract Act, 1872.
- Is it possible to contest a power of attorney sale of real estate?
Yes, but you have to demonstrate dishonesty or incompetence. Until proven otherwise, courts assume that documents that are registered are legitimate.
- In terms of property law, what is surrender of rights?
It occurs when someone cedes ownership or claims, frequently inferred through nomination, payment, or the granting of extensive authority in a document.
- How is a power of attorney confirmed by the court?
A registered power of attorney is presumed to be legitimate by Article 95 of the Qanun-e-Shahadat Order, 1984, unless it is shown to be fraudulent.
Disclaimer
This blog is not legal advice; it is merely for public awareness.
