Power of Attorney

 

Power of Attorney

Definition: Power of Attorney (POA) implies a legal authority which designates a person the power to take decisions on behalf of someone else. It is essential in the event when the principal is incapacitated or not present in person to take a decision. The Power of Attorney Act 1888 regulates power of attorney.

Basically, POA is binding in nature. This means that it is a legal document in writing that a person drafts and authorizes another person to perform all the legal and financial transactions on the former’s behalf. These transactions may include: Receiving rent, Debt, Make an appearance and application in court or in front of an officer of registration.

In a nutshell, through a power of attorney, one can appoint another person to manage the assets, financial matters, medical and so on.

There are different types of POA, which decide the kind of affairs over which the holder has got power. Further, irrespective of the type of POA, if the person whom the holder represents passes away, the POA turns out null and void.

Parties Involved

Granting POA is a legal process. It involves the creation of a document in which someone else gets the right to act as a legal representative. It involves two parties:

1.      Attorney: The person who gives authority is the Principal, Donor or Attorney.

2.     Power of Attorney Holder: The person receiving the power is the done or attorney. He is also referred to as the power of attorney agent.

Registration

Generally, registration of POA is not required. But, in case POA creates interest in any immovable property, then registration is a must. Appointing a POA is a private way of appointing an alternative decision-maker. It is a bit expensive, as it involves seeking help from a lawyer.

Types of Power of Attorney

Special Power of Attorney

The execution of a POA for the purpose of a specific act is a special power of attorney. Here, the term ‘specific act’ means a certain act or acts related to one another to cause one judicial transaction.

General Power of Attorney

Execution of POA to generally represent another person or perform several acts is a general power of attorney.

Authentication

A POA does not require attestation. But it would be desirable to execute the POA and complete its authentication either by:

·         Notary Public

·         Any Court Judge or Magistrate

·         Indian Consul or Vice Consul

·         Representatives of Central Government.

 

******

K.Jagadeesh (23UCM013)

K.S.Vishnu Bharathi (23UCM039)

II B.Com