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SC Quashed FIR as PoA Authorised Sale and Vendee Had No Role in Misdeed

Case Law Details

TaxGuru Citation
2026 taxguru.in 10726
Case Name
Bharat Sher Singh Kalsia Vs State of Bihar & Anr. (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
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Bharat Sher Singh Kalsia Vs State of Bihar & Anr. (Supreme Court of India)

The Supreme Court allowed the appeal against the Patna High Court judgment dated 12 March 2021, which had declined to quash FIR No. 87 of 2011 registered at Dumraon Police Station, Buxar, under Sections 467, 468, 469 and 471 of the Indian Penal Code. The dispute arose from the sale of property situated in Dehradun by a Power of Attorney (PoA) holder in favour of the appellant. The land-owners/principals had executed the PoA on 12 April 1994. The appellant purchased a portion of the property through a Sale Deed dated 24 August 2000. The informant alleged that the PoA had been misused and that the property was sold without obtaining the signatures of the land-owners/principals. After investigation, the police submitted a final report finding a case under Sections 409, 467, 468, 471 and 420 IPC, and the Chief Judicial Magistrate, Buxar took cognizance on 18 November 2014.

Before the Supreme Court, the appellant submitted that the PoA was neither forged nor withdrawn when the Sale Deed was executed and that the PoA contained provisions authorising the holder to execute deeds, sell movable and immovable property, receive consideration and obtain registration. It was also submitted that the appellant was merely the vendee, had paid consideration, and had no role in the dispute between the land-owners and the PoA holder. The appellant relied upon a civil suit filed at Dehradun seeking cancellation of the Sale Deed and rendition of accounts, which had been dismissed, with the civil court finding that the PoA holder was authorised to sell the property and receive consideration. The appellant also contended that the dispute was civil in nature and that the relevant Sale Deed and property were situated in Dehradun.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,755

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