Purshotam Ranchhodbhai Pankhania vs Harihar Ambalal Patel on 15 July, 2026

    0
    5
    ADVERTISEMENT

    Gujarat High Court

    Purshotam Ranchhodbhai Pankhania vs Harihar Ambalal Patel on 15 July, 2026

    Author: Ilesh J. Vora

    Bench: Ilesh J. Vora

                                                                                                                      NEUTRAL CITATION
    
    
    
    
                                 C/FA/259/2020                                      JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
                                 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                                          R/FIRST APPEAL NO. 259 of 2020
                          FOR APPROVAL AND SIGNATURE:
                          HONOURABLE MR. JUSTICE ILESH J. VORA
                          and
                          HONOURABLE MR. JUSTICE R. T. VACHHANI
                          ==========================================================
                                       Approved for Reporting                       Yes           No
    
                          ==========================================================
                                         PURSHOTAM RANCHHODBHAI PANKHANIA & ORS.
                                                          Versus
                                               HARIHAR AMBALAL PATEL & ORS.
                          ==========================================================
                          Appearance:
                          MR SP MAJMUDAR(3456) for the Appellant(s) No. 1,2,2.1,2.2,2.3
                          MR RONAK B RAVAL(5665) for the Defendant(s) No. 1
                          MR. S. L. PATEL(8520) for the Defendant(s) No. 1
                          RULE SERVED for the Defendant(s) No. 2,3
                          ==========================================================
                               CORAM:HONOURABLE MR. JUSTICE ILESH J. VORA
                                     and
                                     HONOURABLE MR. JUSTICE R. T. VACHHANI
                                                   Date : 15/07/2026
                                                   ORAL JUDGMENT

    (PER : HONOURABLE MR. JUSTICE R. T. VACHHANI)

    1. By way of this appeal, the appellants – original plaintiffs challenge
    the judgment and decree dated 11/09/2019 passed by the learned 16 th
    Additional Senior Civil Judge, Vadodara in Special Civil Suit No.60 of
    2016 whereby the suit filed by the appellants – original plaintiffs seeking
    cancellation of the registered Gift Deed dated 05/01/2011 came to be
    dismissed.

    SPONSORED

    2. For the sake of brevity and convenience, the parties reiterate to the
    proceedings would be referred to as per their original status (as plaintiffs-
    appellants and defendants-respondents) before the learned Civil Court.

    3. The brief facts emerging from the pleadings are as under:

    Page 1 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026

    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    3.1. The plaintiff No.1 was the non resident Indian. It is the case of the
    plaintiff that the property bearing registered Plot No.GH-240, City
    Survey No.1255/95 ad measuring fts., property sq. 3200 in Sayajigunj at
    Parishram Co-operative Housing Society (herein after referred to as the
    “suit property”) was purchased by him and his wife deceased Ramaben
    Purshottambhai Pankhania, from Smt. Maniben Chimanbhai Desai
    through Power of Attorney Holder Shri Kiritbhai Chimanbhai Desai
    (Defendant No.1), on 16/09/1999 by registered Sale Deed No.5011 and
    payment has been made through Cheque and since then the said property
    has been in the occupation and possession of the plaintiff.

    3.2. It is further the case of plaintiff that the defendant No.1 Harihar
    Ambalal Patel being in developed relationship with the plaintiff and
    shown interest to conduct business in partnership and asked for the Power
    of Attorney of the plaintiff and annexed for that formalities would be
    completed whenever the plaintiff resides outside the India. That, on
    15.07.1998 the powers given to the defendant No.1-Harihar Ambalal
    Patel and since then the Power of Attorney was given to Harihar Ambalal
    Patel and it remained with defendant No.1.

    3.3. It is further the case of the plaintiff that, on 21.07.2010 the wife of
    present plaintiff Ramaben Purshottambhai Pankhania died at London and
    therefore, due to shock of the death of his wife, the plaintiff could not ask
    for the power of attorney and it remained with the defendant No.1;

    however the power vested through Power of Attorney came to be stand
    still and no such power of attorney can be utilized for any further

    Page 2 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    purpose.

    3.4. It is further the case of the plaintiff that, defendant No.1 without
    having any right over suit property by using said power of attorney and in
    collusion with other defendant/s executed registered Gift Deed dated
    05/01/2011 in favour of defendant No.2 and 3 (son and daughter-in-law)
    without having any right or power. It is further the case of the plaintiff
    that the defendant No.2 and 3 are not in any way in relationship with the
    present plaintiff; neither there was any blood relationship and therefore
    the execution of the Gift Deed dated 05/01/2011 in favour of defendant
    No.2 and 3 cannot in any manner said to be legal and genuine and as a
    result thereof, the plaintiff instituted present suit to get declaration for
    cancellation said registered Gift Deed dated 05/01/2011 and for
    permanent injunction with allied relief.

    3.5. Upon issuance of Notice/summons, the defendants have appeared
    and represented their case and filed the written statement contending that
    the facts stated in the plaint are not true and correct, as also denied all the
    facts in toto. In all, it is contended that since the plaintiff was required to
    start the business and in need of money, he requested the defendant No.2
    to provide for financial help while assuring of return thereof, defendant
    No.2 gave 78,000 Pound which later on were not returned by the plaintiff.
    It is further stated by the defendant that plaintiff has also transferred
    certain amount from the company account to his personal account and
    legal notice was issued by defendant no.2 to the plaintiff wherein the
    plaintiff suggested that in lieu of loan amount, transferred and the suit
    property and therefore defendant no.1 gifted the said suit property in the

    Page 3 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    name of defendant no.2 and 3 as per the instructions of the plaintiff and
    no such illegality has been committed by the defendants and it is
    submitted that the suit may be dismissed.

    4. The learned Civil Court, after framing of the issues and considering
    oral as well as documentary evidence adduced before the Court and after
    hearing the both the parties has dismissed the suit. Hence, this appeal.

    5. Heard learned Advocate Mr.S P Majmudar for the appellants and
    learned and learned Advocate Mr.Ronak B Raval for the respondents.

    6. Learned Advocate Mr.Majmudar for the appellants has submitted
    that the judgment and decree passed by the learned Civil Court is contrary
    to the law and evidence on record and against the settled proposition of
    law. He would submit that learned Civil Court has erred in considering
    the fact that none of the power of attorney empowers the defendant no.1
    to gift the subject property as the same is illegal and contrary to the
    settled proposition of law. He would further submit that no specific power
    to gift the suit property is assigned to the attorney holder and therefore, in
    absence of such power, such transaction in the form of gift deed cannot
    be said to be legal one.

    6.1. Learned Advocate Mr.Majmudar for the appellants while inviting
    the attention of this Court to the fact that though the plaintiff No.2 died in
    the year 2010 and therefore, the power of attorney executed by her in
    favour of defendant No.1 ceases to exist; however the defendant no.1
    executed a Gift deed in the year 2011 which is an illegal transaction; but

    Page 4 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    despite knowing the same learned Civil Court has ignored this important
    fact. He would further submit that as per the settled proposition of law the
    power of attorney executed by the donor in favour of the donee is
    operative and effective only during the life time of the donor and upon
    death of the donor, the said power of attorney ceases to be effective /
    operative and any act post the death of the donor can be said to be
    without any authority in law.

    6.2. Learned Advocate Mr.Majmudar for the appellants has submitted
    that the learned Civil Court has erred in holding that such gift deed is
    executed in lieu of loan amount albeit there being not any cogent and
    valid documentary evidence. He would submit that the learned Civil
    Court has grossly erred in holding that execution of the Gift deed for
    transfer of the suit property in favour of defendants no.2 and 3 was the
    adjustment of the amount borrowed by the plaintiff from the defendant;
    however no such documentary evidence to show such transaction, which
    otherwise has no nexus qua the issue, is produced on record and therefore
    such finding is de hors the evidence on record.

    6.3. Learned Advocate Mr.Majmudar for the appellant has submitted
    that the whole case of the plaintiff rests on the deeds of general power of
    attorney executed by the plaintiff No.1 and his wife (since deceased) in
    favour of defendant no.1 on different dates and occasion. It is further
    submitted that the said power of attorneys do not contain any such
    authority to assign the property by way of any gift deed and despite the
    aforesaid fact situation, the defendant No.1 in detrimental to the rights of
    the plaintiff, executed a gift deed in favour of defendant nos.2 and 3 in

    Page 5 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    collusion with his son and daughter-in-law of defendant no.1.

    6.4. Learned Advocate Mr.Majmudar for the appellants has submitted
    that the learned Civil Court has erred in relying upon the provisions of
    Section 208 of the Indian Contract Act, 1872 since under the said
    provision of law, the agent differs from the agency and therefore the Gift
    Deed executed by the defendant No.1 in absence of any power in favour
    of defendants No.2 and 3 cannot be said to be legal. He would therefore
    submit that the learned Civil Court has erred in interpreting the provisions
    of Section 208 of the Contract Act.

    6.5. To substantiate his submissions, learned Advocate Mr.Majmudar
    for the appellant has placed reliance upon the following decisions:

    (1) M.S Anantgamurthy vs. Manjula Etc, [2025 (10) SCC 596].
    (2) Late Bhagwatbhai Naranbhai Patel Through POA Samveg
    Arvindbhai Lalbhai vs. State of Gujarat, [2023 (0) GUJHC 59322].
    (3) Dhirajlal Bechardas Dhamelia and Anr vs. Pramodchandra Ratilal
    Gajjar
    , [2016 SCC OnLine Guj 10028].

    (4) Smt.V.R. Shanta vs. K.N. Narasimhaiah, [2015 SCC Online Kar
    3181].

    (5) Wajid Pasha vs. The Chairman, Bangalore Development Authority,
    [2013 SCC Online Kar 10135].

    (6) Suchitra Devi V/s Nagineni Sujathamma and Ors., [2022 SCC
    Online MAD 576].

    (7) Prahlad & Ors. V/s Lad Devi & Ors., [2007 SCC OnLine Raj 19].

                          (8)      Srimati Snehalata Das And Anr V/s Prafulla Kumar Patnaik, [1966
    
    
                                                                     Page 6 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                 C/FA/259/2020                                      JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
                                   32 CLT 69].
                          (9)      Sekar Mudaliar vs Shajathi Bi, [AIR 1987 Mad 239].
    

    (10) United India Insurance Co. Ltd. V/s P Kondarjulu and Ors.,
    (Andhra PradeshHigh Court – CMA NO. 232 of 2016).
    (11) PV Sankara Kurup V/s Leelavathy Nambiar, [(1994) 6 SCC 68].
    (12) Pratima Chowdhjury V/s Kalpana Mukherjee, [(2014) 4 SCC 196].
    (13) FHR European Ventures LLP and Anr. V/s Cedar Capitals Partners
    LLC, [(2014) UKSC 45].

    6.6. By making the above submissions, learned Advocate for the
    appellant would submit to allow the appeal and to quash and set aside the
    impugned order.

    7. On the other hand, learned Advocate Mr.Ronak B Raval appearing
    for the defendants would submit that the learned Civil Court has passed
    the just and proper order dismissing the suit after considering the
    evidence so produced on record. He would submit that since the
    defendants have lent some amount to the plaintiff as the plaintiff was in
    need of money to start his business and when the plaintiff had given
    assurance to return the said amount; however the plaintiff was unable to
    return the said amount, at that time, partner of the plaintiff informed to
    the defendant no.2 that plaintiff had also transferred some amount from
    the account of the company to his personal account and thereafter the
    notice was issued upon the plaintiff by the defendant no.2 for return of
    amount wherein ultimately it was decided between them and as per the
    instructions of the plaintiff, the suit property was to be transferred by
    defendant No.1 in favour of defendant no.2 and 3 on the basis of the Gift

    Page 7 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    Deed and thus nothing wrong was committed by the defendants.

    7.1. Learned Advocate Mr.Ronak B Raval for the defendants would
    further submit that there was a fiduciary relationship and the plaintiff
    started his business on account of the assistance given by the father of the
    defendant No.1 in the African Country and all possible financial
    assistance was given to the plaintiff and when the plaintiff settled, there
    was like family relationship between the parties and therefore, on the
    basis of the same, the suit property came to be purchased at the instance
    of the plaintiff by defendant No.1 in his capacity as power of attorney
    holder. It is further submitted that due to the differences arose between
    the parties on account of financial crunch, so also at the request of the
    plaintiff, the suit property solely on the basis of the general power of
    attorney was gifted by way of registered gift deed by defendant no.1 in
    favour of defendants no.2 and 3 and for such transaction huge financial
    transaction have been entered by defendant no.1 in favour of plaintiff. It
    is therefore submitted that the suit property has been disposed of on the
    basis of the power of attorney and the huge consideration towards the
    same has been transferred in the account of the family members of the
    plaintiff as well as in the account of the plaintiff.

    7.2. Learned Advocate Mr.Ronak B Raval for the defendants would
    submit that for execution of the Gift Deed, the plaintiff had given the
    passport size photograph, PAN Card, Identity Card and copy of sale-deed
    to defendant no.1 however at that point of time also the plaintiff did not
    disclose the fact of his wife having expired and thereafter later on, when
    he returned to India, at that time, he revealed the demise of his wife and

    Page 8 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    further substantiate that whenever the plaintiff visits to India, he used to
    live with the defendant No.1 and therefore he could have known such fact
    of executing the Gift Deed.

    7.3. Learned Advocate Mr.Ronak B Raval for the defendants would
    submit that the learned Civil Court after considering the evidence on
    record adduced before the Court and after considering the submissions
    had rightly dismissed the suit and no such interference is required and
    therefore the present appeal may be dismissed.

    7.4. While taking this Court to the provisions of Section 3 of the
    Powers-of-Attorney Act, 1882, the learned advocate for the respondent
    submitted that as per the aforesaid provision, any person making or doing
    any payment or act in good faith, in pursuance of a power of attorney,
    shall not be liable in respect of the payment or act by reason that, before
    the payment or the act, the donor of the power had died, provided such
    fact was not known to the person making or doing the same at the time of
    the payment or act. Thus, an effort has been made by the learned
    Advocate for the Respondent to establish that, as per the powers assigned
    in favour of the Respondent, the Respondent was authorized to deal with,
    and rather enter into, all acts including making payments, settling claims,
    and other incidental matters.

    7.5. In context to the submissions advanced qua knowledge of
    execution of deed is concerned, the respondent contended that the factum
    of the execution of the gift deed was duly communicated to the plaintiff
    at the relevant time.

    
    
                                                                     Page 9 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                 C/FA/259/2020                                      JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    7.6. In support of his submissions, learned Advocate Mr.Ronak B Raval
    for the defendants would rely upon the following decisions:

    (1) Smt. Ram Asri alias Nikko Vs. Rakeshchand and ors. , [AIR 2008
    P&H 194].

    (2) Kulsekarapatnam Hand match Workers’ Co-Operative Cottage
    Industrial Society Limited, Madras State Vs. Radhelal Laloolal and
    Ors.
    , [AIR 1971 MP 191].

    (3) Kathoom Bivi Ammal and Anr. Vs. Arulappa Nadar and Anr.,
    [AIR 1970 Mad 76].

    (4) Nagammal Vs. K. Thangavel and Ors., 2010 LawSuit(Mad) 3202 :

    2010 LawSuit (Mad) 3202.

    (5) Timbolo Iramos Ltd., Margo v. Jorge Anibal Matos Sequeria &
    Anr.
    1976 LawSuit(SC) 501 : (1977) 3 SCC 474
    (6) Syed Abdul Khadet v. Rami Reddy & Ors.
    1978 LawSuit(SC)
    363 : (1979) 2 SCC 601
    (7) State of Gujarat v. Kothari and Associates
    , 2015 LawSuit(SC)
    1062 : (2016) 14 SCC 761
    (8) Mohd. Akram Ansari v. Chief Election Officer & Ors.
    , 2007
    LawSuit (SC) 1290 : (2008) 2 SCC 95
    (9) Daman Singh & Ors. v. State of Punjab & Ors., 1985 LawSuit(SC)
    110 : (1985) 2 SCC 670
    (10) A. Sreenivasa Pai & Anr. v. Saraswathi Ammal
    , 1985 LawSuit(SC)
    217 : (1985) 4 SCC 85
    (11) Seth Look Karan Sethiya v. Ivan E John
    , 1968 LawSuit(SC) 124 :

    1969 AIR (SC) 73

    Page 10 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    (12) Rajni Todan v. Dulal Ranjan Ghosh Dastidar & Anr., 2009
    LawSuit(SC) 1187 : (2009) 14 SCC 782
    (13) Jugraj Singh and Anr. v. Jawant Singh and Ors. 1970 LawSuit(SC)
    141 : (1970) 2 SCC 386

    7.7. Reliance was placed on various judgments pertaining to the
    termination of an agency vis-a-vis the knowledge of the death of the
    donor or grantor of the power of attorney. The learned advocate for the
    respondent also placed reliance on judgments pertaining to the
    construction of a power of attorney and the intention of the parties vis-a-

    vis the surrounding circumstances, which are relevant for the
    interpretation of the deed, relying upon judgments pertaining to the issue
    of limitation, submitted that the issue of limitation can be raised at any
    stage, even if not raised during the course of the trial, and it is incumbent
    on the part of the Court concerned to consider the said aspect on its own,
    which has not been dealt with. Conversely, reliance was also placed on
    judgments to contend that points not raised before the lower court cannot
    be raised at the appellate stage.

    7.8. Lastly, the respondent placed on record an order passed in a
    Criminal Miscellaneous Application, whereby the FIR filed against the
    respondent was quashed and set aside, seeking to rely on the reasoning
    assigned therein to support their case.

    7.9. By making the above submissions, learned Advocate Mr.Ronak B
    Raval would submit to dismiss the present appeal.

    
    
    
    
                                                                    Page 11 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    8. Having heard the learned Advocates appearing for the respective
    parties and examining the facts of the case on hand; the moot question
    which requires consideration for this Court is,
    As to whether on the basis of the general power of attorney
    and the authority so assigned to the power of attorney holder for
    doing such an act, if such an act which has not been assigned is
    done, the consequential effect of such an act and the binding nature
    thereof particularly after the demise of one of the principal of
    power of attorney can be said to be legal or not?

    9. The power of attorney and agency exposition of law as enshrined
    and the relevant provisions pertaining to the same falls under the
    provisions of the Power of Attorney Act, 1882 (herein after referred as
    the Power of Attorney Act). Thus, the power of attorney derives its basic
    principles from the provisions flowing from the aforesaid Act, which
    defines that the power of attorney rests on the aspect of the fiduciary
    relationship between the two persons where one person explicitly or
    implicitly agrees that the other will act on their behalf so as to influence
    their legal relationship with the third parties. Thus, the relationship
    between the executant / donor / grantor of the general power of attorney
    and holder / donee / grantee is one of the principal agent relationship
    where the power of attorney in the nature of contract of agency authorizes
    the holder to do the acts specified by the executant or to represent
    executant in dealing with the third persons. The sum and substance of the
    aforesaid is that the power of attorney is creation of an agency by which
    the grantor / donor / executant authorized the grantee / donee / holder of
    the attorney to do acts specified on his behalf which will be binding on

    Page 12 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    executant as if the acts were done by him.

    10. Keeping in mind the aforesaid aspects, so also considering the facts
    of the case on hand, it is not in dispute that the power of attorney is not
    coupled with the interest which solely authorized the respondent to do the
    particular acts as mentioned in the power of attorney. In context to the
    execution of the Gift Deed executed by defendant No.1 in favour of
    defendant Nos.2 and 3 who are son and daughter-in-law after the demise
    of plaintiff No.2 – Ramaben, and in access so also the binding nature is
    discussed here under:

    11. To meet with the aforesaid issue, the relevant provisions of the
    Indian Contract Act such as provisions of Section 201, 202, 203 and 208
    which has been referred and relied upon by both side to find following
    respectively:

    “201. Termination of agency.–

    An agency is terminated by the principal revoking his authority; or
    by the agent renouncing the business of the agency; or by the
    business of the agency being completed; or by either the principal
    or agent dying or becoming of unsound mind; or by the principal
    being adjudicated an insolvent under the provisions of any Act for
    the time being in force for the relief of insolvent debtors.

    202.Termination of agency, where agent has an interest in
    subject-matter.– Where the agent has himself an interest in the
    property which forms the subject-matter of the agency, the agency
    cannot, in the absence of an express contract, be terminated to the
    prejudice of such interest.

    
    
                                                                    Page 13 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    203.When principal may revoke agent’s authority.–
    The principal may, save as is otherwise provided by the last
    preceding section, revoke the authority given to his agent at any
    time before the authority has been exercised so as to bind the
    principal.

    208. When termination of agent’s authority takes effect as to
    agent, and as to third persons.– The termination of the authority
    of an agent does not, so far as regards the agent, take effect before
    it becomes known to him, or, so far as regards third persons,
    before it becomes known to them.”

    EFFECT ON DEMISE OF POWER OF ATTORNEY DOER /
    GRANTER / EXECUTANT AND CONSEQUENCES FLOWING
    FROM POWER OF ATTORNEY:

    12. As emerging from the record, it is not in dispute that the general
    power of attorney having been issued by the plaintiff No.2 (since
    deceased) in favour of defendant No.1 on 21/07/2010. Whereas the
    registered Gift deed is alleged to have been executed on 05/11/2011 by
    defendant No.1 in his capacity as the power of attorney holder of the
    plaintiff No.2 (since deceased) as well as the power of attorney of
    plaintiff No.1 wherein apparently the plaintiff No.2 was expired. Thus,
    when such transactions in capacity as the power of attorney was entered
    into by the power of attorney holder, the principal of the power of
    attorney holder has already been expired. Therefore, the fact that remains
    is once the maker of the power of attorney / principal – dies, the agency
    comes to an end in view of Section 201 of the Indian Contract Act. Since
    the power of attorney executed in favour of the defendant No.1 having no
    element of any commercial transactions rather the said power of attorney

    Page 14 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    appears to be the general power of attorney whereas by virtue of the said
    power of attorney, the defendant No.1 claimed to have entered into the
    transaction in the nature of gift deed which is not authorized anywhere in
    the general power of attorney. Thus, once the principal / donor dies, the
    said power of attorney shall automatically come to an end by an act of
    law and the defendant No.1 is not expected rather authorized to act on
    behalf of the dead person in his capacity as the power of attorney holder.

    13. It also requires to be noted at this stage that agency or authority
    would stand terminated on the demise of principal executant / donor /
    grantor of general power of attorney in view of the provisions of Section
    201
    of the Indian Contract Act. In the instant case, at the cost of
    repetition, it is to be noted that on demise of plaintiff No.2 – Ramaben
    who was executant of the power of attorney dated 21/07/2010, the said
    power of attorney can be said to have been terminated. Thus, the moot
    question rather incidental question requires for consideration is as to
    whether an agent or power of attorney holder could act on behalf of the
    principal even after the death of principal, till such time that he has notice
    of the death. However, in the case on hand, the defendant No.1 claimed
    to have ignorance as to the demise plaintiff No.2 – Ramaben in contrast
    while claiming to have a family like relationship rather fiduciary
    relationship with the family of the appellant estopped from pleading
    ignorance of the death of Plaintiff No.2.

    14. It would be apt to note that the agency can be terminated under the
    following circumstances.

    a. revocation of the agent’s authority by the principal;

    
    
                                                                    Page 15 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
                                   b.      agent renouncing the agency;
                                   c.      completion of the business agency;
                                  d.       death of the principal agent;
    
    
    

    In view of the settled legal proposition of law as relied upon by the
    appellants, it transpires that the death of the principal or the agent
    terminates the agency at once, whether the other has notice to that effect
    or not (Campanari v Woodburn (1854) 15 CB 400; Pool V Pool (1889)
    58 LJP 67).

    15. In view of the aforesaid provisions of the Indian Contract Act as
    reproduced herein above, the authority of agents stood terminated by any
    of the aforesaid circumstances and it becomes incumbent rather duty on
    the part of the agent for the protection and preservation of the interests of
    the principal entrusted to him and therefore, the submissions advanced by
    the learned advocate for the respondent that in view of Section 208 of the
    Contract Act, the termination of the authority of an agent does not, so far
    as regards the agent, take effect before it becomes known to him or, as
    regards the third person, is subject to the above exception, in the event of
    the death of the principal, do not find much force, as on account of the
    death of the principal, the power of attorney holder had no authority to act
    on behalf of the principal. In nutshell, the contract of agency gets
    automatically terminated by death of either of the parties. As soon as the
    person who executed the power of attorney dies, the right given to the
    agent comes to exist. Once the agency is terminated on account of the
    operation of law or by the act of the principal, the agent cannot act on the
    basis of the power conferred upon him under the deed of power of

    Page 16 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    attorney. As a consequential effect, on the demise of principal, the power
    automatically stands terminated.

    16. At this juncture, it would be apt to refer to provisions of Section 3
    of the Power of Attorney Act, 1882:

    “3. Payment by attorney under power, without notice of death,
    etc., good.– Any person making or doing any payment or act in
    good faith, in pursuance of a power -of-attorney, shall not be liable
    in respect of the payment or act by reason that, before the payment
    or act, the donor of the power had died or become 5** of unsound
    mind, 6* or insolvent, or had revoked the power, if the fact of
    death, 7* unsoundness of mind, 8** insolvency or revocation was
    not, at the time of the payment or act, known to the person making
    or doing the same.

    But this section shall not affect any right against the payee
    of any person interested in any money so paid; and that person
    shall have the like remedy against the payee as he would have had
    against the payer, if the payment had not been made by him. This
    section applies only to payments and acts made or done after this
    Act comes into force.”

    17. By the aforesaid provision of Section 3 of the Power of Attorney
    Act, any act done by the power of attorney are expected to be done in
    good faith, particularly when presenting the deed of having been
    registered by the power of attorney holder after the death of the principal
    which espouses the fraudulent intention on the part of the power of
    attorney holder which automatically considered the act as misdeed which

    Page 17 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    operate to convey title to the immovable property and while presenting
    any such deed which is being authorized by the power of attorney to the
    holder of the power of attorney, for registration and that too after the
    death of the principal which is being registered subsequently is nothing
    but invalid and would not create any right in favour of the transferee and
    therefore the question which arose as to the termination of the agency on
    account of the death of the principal and when the act of presentation of
    the documents for conveyance for registration by the power of attorney
    agent, after termination of the agency upon death of the principal cannot
    be said to be legal and convey any title in favour of the transferee –
    respondent herein as the death of principal leads to termination of agency
    by the operation of law and not by the acts of the parties and therefore
    vociferous contentions raised by the respondent while pleading ignorance
    as to the demise of plaintiff No.2 – Ramaben (since deceased) before
    executing a gift deed, more particularly, while presenting the same for
    registration under the guise of settlement of accounts who otherwise is
    expected to inquire about rather bring in to the knowledge of such act to
    the principal, which in fact in the case on hand seems to be sheer lacking
    and therefore, also the said act amounts not bona fide but fraudulent one
    which vitiates to every solemn transaction.

    18. In context to the termination of the agency as fall under Section
    208
    of the Contract Act, the core question which arose for consideration
    is when will the termination of the agency take effect? As discussed in
    the foregoing paragraphs, even while presenting the deed of conveyance
    for registration by power of attorney holder, even after the death of
    principal, particularly when the factum as to the termination which

    Page 18 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    revoke to the agency, by death of principal claim to have communicated
    to the respondent No.1 – agent cannot even confer validity of presentation
    of the deed / gift deed for registration after the death of the principal as
    the power to present the documents for registration after the demise of the
    principal stood void, ab initio defective and therefore, provisions of
    Section 208 of the Contract Act is applicable only with reference to the
    act ordinarily be done by its agent in course of its valid and not after the
    termination of the agency on account of the death of the principal.

    19. When the provisions under Section 32(c) of the Registration Act
    amply makes it clear that even at the time of presentation of the document
    a person – agent must fulfill a particular characters as an agent and if he
    does not fulfill that character then the very presentation for registration is
    defective and cannot be cured by pleading ignorance particularly when
    there are two different power of attorney in the case on hand; one is alive
    and another is died did not authorize the defendant No.1 to present the
    documents for presentation for registration of gift deed and therefore
    Section 208 of the Contract Act would not come to the rescue of the
    defendant No.1.

    20. Thus, the very purpose of Section 208 of the Indian Contract Act is
    to protect the interest of the so-called transferee where the termination of
    the agency is by revocation. However, in case of the death of the
    principal, the power ceases to exist and an act of an agent – defendant
    No.1 herein of the principal – Ramaben cannot be approved as the agent
    has no power to represent a dead person. In other words, dead person
    cannot be a party to the contract and this aspect has been reiterated in

    Page 19 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    plethora of decisions as relied upon by the learned Advocate for the
    appellants and therefore, the submissions advanced by the learned
    advocate for the respondents relying upon the provisions of Sections 203
    and 208 of the Contract Act has no substance.

    ACT OF POWER OF ATTORNEY HOLDER BEYOND THE
    POWERS ASSIGNED FOR VIS-A-VIS CONSTRUCTION OF
    POWER OF ATTORNEY AUTHORITY:

    21. In continuation of the aforesaid discussion with regard to the
    execution of the power of attorney, so also the assignment of the powers
    and the act of the agent beyond the powers being vested on the basis of
    the power of attorney and the consequential act and effect of such an act
    can be said to be a binding to the principal.

    22. The power of attorney must be construed strictly and therefore, the
    general words used in the clauses, recitals and inserted therein must be
    read with the special powers given in earlier clauses and cannot be
    construed to enlarge the restricted powers. Here in the case on hand, the
    defendant No.1 – power of attorney holder is alleged to have executed a
    Gift Deed in favour of defendant Nos.2 and 3 in their absence (for
    example in capacity of the power of attorney of defendant No.2 and 3)
    and when no such clause containing or assignment of powers and
    authority to the power of attorney holder – defendant No.1 to execute the
    gift deed is found, the question would come as to whether the same vests
    any legal and valid right in favour of the respondent no.2 and 3 claimed
    to acquire property on the basis of the gift deed as the power to execute
    the gift deed was not assigned by the power of attorney.

    
    
                                                                    Page 20 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    23. To meet with the aforesaid contentions that defendant No.1 has no
    authority to make any gift deed of the questioned property consequently
    and the defendant no.2 and 3 acquired no title on the basis of such gift
    deed, and to appreciate this contention, it would be apt to extract the
    material terms of the power of attorney executed by plaintiff No.1 and 2
    in favour of defendant No.2.

    Power of Attorney executed by Plaintiff No.1

    “GENERAL POWER OF ATTORNEY
    Know all men by these presents
    I Purshottam Ranchhod Pankhania son of Ranchhod Nathubhai Pankhania
    aged 60 Yr. Occupation Business Residing at 62, Kennelworth Road, asford
    Middlesex 7W153LU U.K. Residence 5 Parishram Society, Fatehgunj
    Baroda,hereby nominate, constitute and appoint HARIAR AMBALAL PATEL,
    5 Parishram Society Baroda – 2, Gujarat State, India.
    To be my true and lawful attorney for me and in my name and on my behalf to
    do all or any of the following acts and things namely:

    (1) To ask, demand, recover, enforce, sue for, recover and receive and give
    good and sufficient receipts, discharges and releases and indemnities for and
    in respect of all moneys, properties, securities and rights of any nature
    whatsoever belonging to me or to which i am or maybe entitled to and to settle
    any account, effect a Compromise or release any claim in respect thereof and
    to pay, discharge, satisfy or compromise any of my debts or liabilities or
    claims of any nature against me.

    (2) To apply and subscribe for whether absolutely or conditionally), pay calls
    on, buy accept or otherwise acquire, and to sell, assign exchange, renounce or
    otherwise dispose of, stocks, funds, shares, debentures, debenture stock,
    securities and investments of every description, however constituted and
    wherever issued, and whether now existing or hereafter to be created, and any
    options or rights in respect thereof; to enter into underwriting and sub-

    underwriting agreements; and generally to manage and very investments.

    (3) To buy, sell, exchange and surrender, supervise and manage and lands,
    buildings and premises of any tenure and description, including furnished
    premises, at any price and subject to or with the benefit of any easements,
    reservations, covenants and conditions and to exercise all right vested in or
    exercisable by me as vendor or purchaser.

    
    
    
                                                                    Page 21 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                        NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                       undefined
    
    
    
    
    

    (4) To take and let on lease and to accept or grant, or terminate tenancies
    over any lands, buildings and premises of any nature and description at any
    rent and subject to any conditions and to receive rents and other moneys and
    grant receipts for the same and in default to take such action for its recovery
    including recovery of possession as he may deem meet and exercise all rights
    vested in or exercisable by me as landlord or tenant.

    (5) To borrow money with or without securities or to give guarantee or stand
    surety on my behalf, mortgage my property, real or personal, now owned or
    hereafter to be acquired and wherever situated and to lend money with or
    without securities; upon such terms and conditions to my said attorney may
    deem expedient.

    (6) To open and operate on any banking account and to draw, sign, accept,
    endorse, and negotiate cheques, bills of exchange, dividend and interest
    warrants, and negotiable instruments, including power to accept bills of
    exchange and power to give promissory notes.

    (7) To buy and sell goods of al kinds for cash or on credit, and to carry out
    and contract for repairs and improvements of movable and immovable
    property.

    (8) To give, very and revoke instructions as to the manner in which any
    moneys payable to or by me (whether periodically or otherwise) shall be paid
    or dealt with and as to the custody and disposal or any personal property,
    including securities and documents of title and to Withdraw sum of sums of
    mature and premature fixed deposits.

    (9) In connection with any stocks, funds, shares, debentures, debenture stock,
    securities or investments, to attend and vote or appoint any person to attend
    and vote as my proxy at meetings of holders thereof, and effect, sanction or
    oppose any exercise or modification of rights.

    (10) To apply for and obtain grant from any court to the estate of deceased
    person and to administer the estate of such deceased person.

    (11) Before any court, tribunal or other authority, institute, carry on, defend,
    compromise, abandon or submit to judgement in any legal proceedings, to join
    in and submit to arbitration, to give security or indemnities for costs, to pay
    money into court and obtain payment of money lodged in any court tribunal or
    other authority.

    (12) To present, support or oppose any petition for winding up or bankruptcy,
    to join in, sanction or oppose any composition or arrangement; to attend and
    vote or appoint any person to attend and vote as my proxy at any meeting of
    creditors; to make and file proofs of claim, and generally to represent me in

    Page 22 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    any liquidation, bankruptcy or insolvency.

    (13) To carry on, manage, conduct and supervise and business for me and in
    my name and to accept orders and enter into contracts in relation thereto.

    (14) To engage, remunerate, dismiss and fix and very the duties and terms of
    service of employees, agents and contractors.

    (15) To concur in doing any act or thing hereby authorised.

    (16) To substitute or appoint one or more attorney or attorneys under him and
    at pleasure to displace or remove and appoint another or others.

    AND GENERALLY, for me and in my name to manage and transact all my
    affairs and to do anything and everything anywhere in the world and for me
    and on my behalf to execute such deeds or instruments as my be necessary and
    to use all lawful ways and means thereof, as fully and effectually to all intents
    and purposes as I might or could do it personally present and acting herein.

    I HEREBY agree and covenant for me and for my heirs, executors and
    administrators to allow, ratify and confirm whatsoever my said attorney or his
    substitute or substitutes shall do or cause to be done by virtue of these
    presents including in such confirmation whatsoever shall be done between the
    time of my decease or of the revocation of these presents and the time of such
    decease or revocation being known to anyone act on this power of attorney.

    IN WITNESS whereof I have hereunto set my hand and seal this 15th day of
    July, one thousand nine hundred and eighty-eight.”

    Power of Attorney executed by Plaintiff No.2 (since deceased)
    “GENERAL POWER OF ATTORNEY
    Know all men by these presents
    That I RAMABEN PURSHOTAM PANKHANIA wife of PURSHOTTAM
    RANCHHOD PANKANIA age 54 years. Occupation Business. Residing at 62,
    Kennilworth Road, ashford, Middlesex, United Kingdom. Local Residence 5
    Parishram Society, Fatehgunj Baroda,hereby nominate, constitute and
    appoint HARIHAR AMBALAL PATEL, 5 Parishram Society Baroda – 2,
    Gujarat State, India.

    To be my true and lawful attorney for me and in my name and on my behalf to
    do all or any of the following acts and things in respect of 6, Parishram
    Society Baroda-2, Gujarat State India- namely:

    (1) To ask, demand, recover, enforce, sue for, recover and receive and give
    good and sufficient receipts, discharges and releases and indemnities for and

    Page 23 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    in respect of all moneys, properties, securities and rights of any nature
    whatsoever belonging to me or to which i am or maybe entitled to and to settle
    any account, effect a Compromise or release any claim in respect thereof and
    to pay, discharge, satisfy or compromise any of my debts or liabilities or
    claims of any nature against me.

    (2) To apply and subscribe for whether absolutely or conditionally), pay calls
    on, buy accept or otherwise acquire, and to sell, assign exchange, renounce or
    otherwise dispose of, stocks, funds, shares, debentures, debenture stock,
    securities and investments of every description, however constituted and
    wherever issued, and whether now existing or hereafter to be created, and any
    options or rights in respect thereof; to enter into underwriting and sub-

    underwriting agreements; and generally to manage and vary investments.

    (3) To buy, sell, exchange and surrender, supervise and manage and lands,
    buildings and premises of any tenure and description, including furnished
    premises, at any price and subject to or with the benefit and to exercise all
    rights vested in or exercisable by me as vendor or purchaser.

    (4) To take and let on lease and to accept or grant, or terminate tenancies
    over any lands, buildings and premises of any nature and description at any
    rent and subject to any conditions and to receive rents and other moneys and
    grant receipts for the same and in default to take such action for its recovery
    including recovery of possession as he may deem meet and exercise all rights
    vested in or exercisable by me as landlord or tenant.

    (5) To borrow money with or without securities or to give guarantee or stand
    surety on my behalf, mortgage my property, real or personal, now owned or
    hereafter to be acquired and wherever situated and to lend money with or
    without securities; upon such terms and conditions to my said attorney may
    deem expedient.

    (6) To open and operate on any banking account and to draw, sign, accept,
    endorse, and negotiate cheques, bills of exchange, dividend and interest
    warrants, and negotiable instruments, including power to accept bills of
    exchange and power to give promissory notes.

    (7) To buy and sell goods of all kinds for cash or on credit, and to carry out
    and contract for repairs and improvements of movable and immovable
    property.

    (8) To give, vary and revoke instructions as to the manner in which any
    moneys payable to or by me (whether periodically or otherwise) shall be paid
    or dealt with and as to the custody and disposal or any personal property,
    including securities and documents of title and to Withdraw sum of sums of
    mature and premature fixed deposits.

    
    
    
    
                                                                    Page 24 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                        NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                       undefined
    
    
    
    
    

    (9) In connection with any stocks, funds, shares, debentures, debenture stock,
    securities or investments, to attend and vote or appoint any person to attend
    and vote as my proxy at meetings of holders thereof, and effect, sanction or
    oppose any exercise or modification of rights.

    (10) To apply for and obtain grant from any court to the estate of deceased
    person and to administer the estate of such deceased person.

    (11) Before any court, tribunal or other authority, institute, carry on, defend,
    compromise, abandon or submit to judgement in any legal proceedings, to join
    in and submit to arbitration, to give security or indemnities for costs, to pay
    money into court and obtain payment of money lodged in any court tribunal or
    other authority.

    (12) To present, support or oppose any petition for winding up or bankruptcy,
    to join in, sanction or oppose any composition or arrangement; to attend and
    vote or appoint any person to attend and vote as my proxy at any meeting of
    creditors; to make and file proofs of claim, and generally to represent me in
    any liquidation, bankruptcy or insolvency.

    (13) To carry on, manage, conduct and supervise and business for me and in
    my name and to accept orders and enter into contracts in relation thereto.

    (14) To engage, remunerate, dismiss and fix and very the duties and terms of
    service of employees, agents and contractors.

    (15) To concur in doing any act or thing hereby authorised.

    (16) To substitute or appoint one or more attorney or attorneys under him and
    at pleasure to displace or remove and appoint another or others.

    AND GENERALLY, for me and in my name to manage and transact all my
    affairs in India for me an on my behalf to execute such deeds or instruments as
    maybe necessary and to use all lawful ways and means thereof, as fully and
    effectually to all intents and purposes as I might or could do it personally
    present and acting herein.

    AND I HEREBY agree and covenant for me and for my heirs, executors and
    administrators to allow, ratify and confirm whatsoever my said attorney or his
    substitute or substitutes shall do or cause to be done by virtue of these
    presents including in such confirmation whatsoever shall be done between the
    time of my decease or of the revocation of these presents and the time of such
    decease or revocation being known to anyone act on this power of attorney.

    IN WITNESS whereof I have hereunto set my hand and seal this 16th day of
    April, One Thousand Nine Hundred and Ninety-Nine.”

    
    
    
                                                                    Page 25 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                    Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    24. From the aforesaid extract of deeds of power of attorneys, it would
    appear that while examining the role regarding the construction of power
    of attorney and the authority so vests in the defendant No.1 where the act
    purported to have been done under the power of attorney which is a
    challenge in the case on hand is being in excess of the authority conferred
    and therefore, it is necessary to state that on a fair construction of the
    whole instrument the authority in question is to be found within four
    corners of the instrument, either in express terms or by necessary
    implication and therefore, general words used in the subsequent clauses
    of a power of attorney must be read with the special powers given in the
    earlier clauses and cannot be construed so as to enlarge the restricted
    powers mentioned therein.

    25. In nutshell, while appreciating both the power of attorney, it is
    undisputedly and manifestly established that these deeds do not authorize
    making of a gift as underlined expression emerges from the deed of
    power of attorney indicates unequivocally that the transfer must be for
    consideration.

    26. Thus, while perusing the entire documents, so also the intention of
    the principal, the object of the power when the document is read as a
    whole, eschews out any contention that the authority extended even to the
    making of a gift in favour of defendant no.2 and 3 for whom the appellant
    contends that he cannot be said to have any such love and affections
    which may enlarge to get transfer of immovable property of the
    substantial value without consideration and therefore, the defendants

    Page 26 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    appears to have exceeded the authority rather entered into the
    unauthorized act by executing the gift deed so as to deprive the appellant
    by their legitimate rights.

    27. The Learned Advocate for the respondent has placed reliance on
    the judgments pertaining to termination of agency vis-a-vis knowledge of
    death of the donor or grantor of the power of attorney. With reference to
    the same, Smt. Ram Asri alias Nikko Vs. Rakeshchand and ors. , [AIR
    2008 P&H 194], Seth Loon Karan Sethiya Vs. Ivan E. John and Ors.
    ,
    [AIR 1969 SC 73], Kulsekarapatnam Hand match Workers’ Co-
    Operative Cottage Industrial Society Limited, Madras State Vs.
    Radhelal Laloolal and Ors.
    , [AIR 1971 MP 191], Kathoom Bivi Ammal
    and Anr. Vs. Arulappa Nadar and Anr.
    , [AIR 1970 Mad 76],
    Nagammal Vs. K. Thangavel and Ors., [SA 1052/2009], Shri Harbans
    Singh Vs. Smt. Shanti Devi., [ILR (1977) 2 Del 649] and Seth Look
    Karan Sethiya v. Ivan E John
    , 1968 LawSuit(SC) 124 : 1969 AIR (SC)
    73 have been pressed into service. To deal with the aforesaid issues, it is
    pertinent to note that the provision of Section 3 of the Powers-of-
    Attorney Act does not come to the rescue of the respondent. As discussed
    in the preceding paragraphs, and to state again at the cost of repetition,
    the factum of assigning powers to the respondent to execute a gift deed
    has not been established. Therefore, the powers can be said to have been
    exceeded; rather, the act was done without there being any legal
    assignment of such authority.

    28. Regarding the contention that the execution of the gift deed was
    communicated to the plaintiff at the relevant time, no such material has

    Page 27 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    been placed on record to substantiate the same. Mere contentions, without
    there being any substantive proof, cannot replace the evidence which is
    otherwise required to be appreciated by due process of law.

    29. So far as the judgments pertaining to construction of Power of
    Attorney, intention of the parties, principles of construction of deed as
    well as applicability of Section 32(c) of the Registration Act and
    presumption of validity of the act of Sub-Registrar are concerned, the
    learned advocate for the respondent has placed reliance upon the
    decisions in the following cases. With reference to the same, Timbolo
    Iramos Ltd., Margo v. Jorge Anibal Matos Sequeria & Anr.
    1976
    LawSuit(SC) 501 : (1977) 3 SCC 474, Syed Abdul Khadet v. Rami
    Reddy & Ors.
    1978 LawSuit(SC) 363 : (1979) 2 SCC 601, (10) A.
    Sreenivasa Pai & Anr. v. Saraswathi Ammal
    , 1985 LawSuit(SC) 217 :

    (1985) 4 SCC 85, Rajni Todan v. Dulal Ranjan Ghosh Dastidar & Anr.,
    2009 LawSuit(SC) 1187 : (2009) 14 SCC 782 and Jugraj Singh and
    Anr. v. Jawant Singh and Ors. 1970 LawSuit(SC) 141 : (1970) 2 SCC
    386 have been cited. The judgments relied upon by the respondent
    regarding the interpretation of deeds and the intention of parties do not
    come to the rescue of the respondent, nor do they appear to be applicable
    to the facts of the present case. When there is no ambiguity whatsoever
    while reading the contents of the document in question, the question
    pertaining to the principles of interpretation does not arise. Admittedly,
    the respondent is not in a position to point out that the power having been
    vested to execute a deed of gift was ever conferred. The Power of
    Attorney in question clearly indicates that only absolutely necessary and
    incidental powers were assigned for the execution of certain specific

    Page 28 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    objects of the general powers given to the respondent.

    30. On the aspect that the issue of limitation can be raised at any stage
    so also it is the duty of the Court to consider the said aspect even on its
    own initiative, the learned advocate for the respondent has placed reliance
    on the judgment of the Hon’ble Supreme Court in (7) State of Gujarat v.
    Kothari and Associates
    , 2015 LawSuit(SC) 1062 : (2016) 14 SCC 761.
    With reference to the same, in context to the reliance placed on the
    decided cases pertaining to the issue of limitation–that the said issue can
    be raised at any stage and the Court must consider it on its own–the
    aforesaid legal proposition cannot be denied. However, its applicability
    varies from case to case. Considering the facts of the case on hand,
    admittedly, the issue of limitation was not framed, nor did the defendant
    raise any objection regarding the non-framing of the issue at the relevant
    time. Not even an iota of evidence appears to have been led on this point;
    rather, the objection seems to have been waived, and therefore, there was
    no question for the Civil Court to deal with it.

    31. Apart from the aforesaid, considering the facts on hand, as soon as
    the plaintiff came to know of the disposal of the property by the
    respondent on the basis of the gift deed executed in favour of the
    respondent’s children, the appellant called upon the respondent to answer
    by way of a notice dated 12.02.2016. In the absence of a response, the
    appellant rushed to the Court. The aforesaid facts emerge from the
    material placed for consideration, which appears not to be in dispute, and
    therefore, the contention regarding limitation must fail.

    
    
    
    
                                                                    Page 29 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    32. With regard to the legal position that a point not raised before the
    lower court cannot be raised at the appellate stage, the learned advocate
    for the respondent has placed reliance on Mohd. Akram Ansari v. Chief
    Election Officer & Ors.
    , 2007 LawSuit (SC) 1290 : (2008) 2 SCC 95
    and Daman Singh & Ors. v. State of Punjab & Ors., 1985 LawSuit(SC)
    110 : (1985) 2 SCC 670. With reference to the same, further, addressing
    the judgments relied upon by the respondent to the effect that points not
    raised before the lower court cannot be raised at the appellate stage, it
    would be apt to refer to the aforesaid proposition in consonance with the
    facts of the case on hand. There is a presumption in law that a Judge deals
    with all points which have been pressed before him. It often happens that
    several points are taken in a memorandum of petition or appeal, but at the
    time of arguments, only some of those points are pressed. Therefore, a
    Judge will naturally deal only with the points pressed before him during
    arguments, and it will be presumed that the appellant gave up the other
    points; otherwise, the Judge would have dealt with them. Although this is
    a rebuttable presumption, in the case on hand, the submission was
    advanced that the issue of limitation, though not raised, can be raised at
    the appellate stage. However, no effort seems to have been made to place
    any material on record to establish that any such motion was initiated by
    the respondent before the learned Civil Court Judge with a request that
    the said point, though pressed for, was not dealt with. Therefore, the said
    contentions do not find force.

    33. Lastly, on the point of the order passed in the Criminal
    Miscellaneous Application quashing the FIR, the learned advocate for the
    respondent has placed reliance on Shashikant Ambalal Patel & Anr. v.

    
    
                                                                    Page 30 of 32
    
    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026                   Downloaded on : Wed Jul 15 22:42:28 IST 2026
                                                                                                                       NEUTRAL CITATION
    
    
    
    
                                C/FA/259/2020                                       JUDGMENT DATED: 15/07/2026
    
                                                                                                                      undefined
    
    
    
    
    

    State of Gujarat & Anr. Criminal Misc. Application (For Quashing &
    Set Aside FIR/Order) No.22386 of 2017 dated 04.12.2024. With
    reference to the same, lastly, regarding the order passed in the Criminal
    Miscellaneous Application quashing the FIR, though efforts have been
    made to rely upon the reasoning assigned thereto, the said order does not
    come to the rescue of the respondent herein as the present case stands on
    entirely different footings, and the civil rights of the parties are required
    to be dealt with by a preponderance of probabilities and by adducing
    cogent material, without taking reference to any such other criminal
    proceedings.

    34. In view of the foregoing discussions, the undisputed facts of the
    case on hand would reveal that the plaintiffs executed a general power of
    attorney in favour of the defendant no.1 and on demise of the plaintiff
    No.2, the power of attorney executed by her in favour of defendant No.1
    ceases to an end and no such transaction can be entered into on the basis
    thereof post the death of the principal of the power of attorney even while
    pleading ignorance of death of the principal and therefore, in absence of
    any clause / recital or any specific power to execute a Gift Deed, the act
    done by the defendant No.1 in the capacity of the power of attorney
    holder of defendant No.2 (since deceased) can be said to be an illegal act
    and does not have any leg to stand in the eye of law. Thus, in view of the
    aforesaid, the learned Civil Court, seems to have been traveled beyond
    the entire gamut of the case, rather rested its findings / conclusions, solely
    on the assumptions and presumptions, while equating the financial
    presumptions with the authority assigned to set off all the sum against the
    considerations, etc. The case of the plaintiff solely rests challenge as to

    Page 31 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026
    NEUTRAL CITATION

    C/FA/259/2020 JUDGMENT DATED: 15/07/2026

    undefined

    the on the execution of the gift deed, without there being assumptions of
    power into power of attorney and therefore, the question of financial
    transactions or the payment, etc. does not arise, as viewed hereinabove.

    35. In the result, the appeal deserves to be allowed and accordingly it is
    allowed.

    36. The judgment and order dated 11/09/2019 passed by the learned
    16th Additional Senior Civil Judge, Vadodara in Special Civil Suit No.60
    of 2016 is quashed and set aside.

    37. Consequently, the registered Gift Deed dated 05/01/2011 executed
    by the defendant No.1 in favour of the defendants No.2 and 3 is held as
    void, ab initio and in nutshell, the relief as prayed for in the relief clause
    of the plaint stands allowed.

    38. Decree to be drawn accordingly.

    39. In view of the above, the connected Civil Application(s), if any,
    stands disposed of accordingly.

    40. Record and proceedings, if any, be remitted to the concerned Court
    forthwith.

    (ILESH J. VORA,J)

    (R. T. VACHHANI, J)
    MVP

    Page 32 of 32

    Uploaded by MR.MITESH VIJAYBHAI PANCHAL(HCD0065) on Wed Jul 15 2026 Downloaded on : Wed Jul 15 22:42:28 IST 2026



    Source link

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here