The Madras High Court has ruled that a power of attorney agreement will not automatically be cancelled with the death of one of the persons who handed over the power, but the termination depends upon the facts and circumstances of each case

CHENNAI: The Madras High Court has ruled that a power of attorney agreement will not automatically be cancelled with the death of one of the persons who handed over the power, but the termination depends upon the facts and circumstances of each case.

The ruling was given by a division bench of Justices R Subramanian and R Sakthivel recently while dismissing a 2002 appeal as abated regarding the issue of power of attorney termination.

“From the precedents discussed above, we will have to necessarily conclude that a power of attorney deed executed by several persons, which cannot be said to be coupled with interest, is not automatically terminated on the death of one of the principals. The question of termination would necessarily depend on the facts and circumstances of each case,” the bench said in the order.

The bench laid down certain guidelines on the issue. They included the termination will necessarily be dependent on the facts and circumstances of each case; the intention of the parties at the time of execution of the power will play an important role in the decision-making process, the bench said.

It added if it is shown that the intention of the parties was that the power was to continue even after the death of one of the executants the agency (authorisation of power) will continue till the object sought to be achieved is complete; if the interest of the deceased principal is separable from that of the surviving principals, then, the power would not survive in respect of the deceased principal, the bench underscored.

The appeal was filed by KA Meeran Mohammed (since deceased) in 2002. It was referred to the division bench after a single judge had made a reference on the questions of “whether the general power attorney executed jointly by more than one principal will survive even after the death of the principals and if so, under what circumstances?”

Even though the petitioner died during the course of the pending case, the bench preferred elaborately hearing the matter to reach a conclusion. It dismissed the appeal as abated. The bench appreciated senior counsel Srinath Sridevan, who was appointed as amicus curiae, for his valuable assistance to the court.