GPA Ends on Principal’s Death; Unregistered ATS Doesn’t Transfer Ownership: SC

Ananthamurthy & Anr. Vs J. Manjula ETC (Supreme Court of India)

Key Legal Issues- The Supreme Court examined the following legal questions:

1. Does a General Power of Attorney (GPA) confer ownership rights upon the holder
2. What is the legal effect of an unregistered Agreement to Sell
3. Can a GPA holder execute a sale deed after the death of the principal
4. Whether a suit for permanent injunction is maintainable without a declaratory relief regarding title

Supreme Court’s Observations and Ruling:

The Supreme Court reaffirmed the legal principles established in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana [(2012) stating:

“A General Power of Attorney is fundamentally an instrument of agency and ceases to exist upon the death of the principal. Transactions based on such an instrument after the principal’s death are legally void.”

Immovable property can be legally and lawfully transferred/conveyed only by a registered deed of conveyance. Transactions of the nature of “GPA sales” or “SA/GPA/will transfers” do not convey title and do not amount to transfer, nor can they be recognised or valid mode of transfer of immovable property. The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property. They cannot be recognised as deeds of title, except to the limited extent of Section 53-A of the TP Act. Such transactions cannot be relied upon or made the basis for mutations in municipal or revenue records. What is stated above will apply not only to deeds of conveyance in regard to freehold property but also to transfer of leasehold property. A lease can be validly transferred only under a registered assignment of lease. It is time that an end is put to the pernicious practice of SA/GPA/will transactions known as GPA sales.”