Power of Attorney Validity Upheld: Supreme Court Dismisses FIR in Dehradun Land Sale Case

February 5, 2024by Primelegal Team0

Case Title: Bharat Sher Singh Kalsia v. State of Bihar & Anr.

Case No.: S.L.P.(CR) No. 6562 OF 2021

Decided On: 31.01.2024

Coram: Hon’ble Mr. Justice Vikram Nath and Hon’ble Mr. Justice Ahsanuddin Amanullah

 

 

Facts of the Case:

The case included an appeal arising from a Patna High Court ruling that nullified a police report. A Power of Attorney (PoA)-covered property sale was allegedly criminally involved by the appellant, a land purchaser, according to the FIR. The PoA gave the holder the authority to carry out deeds on behalf of landowners, including sales. Co-sharers disagreed on the legitimacy of the Sale Deed. After examining the PoA terms, the court determined that Dehradun, not Buxar, where the FIR was filed, was the proper jurisdiction for the transaction. The court dismissed the FIR, emphasising protection against unjustified criminal prosecution, as the appellant had no involvement in the PoA’s execution and the disagreements were civil in nature.

Legal Provisions:

The outcome of the case depends on how the Indian Penal Code and the Code of Criminal Procedure interpret a Power of Attorney (PoA). The court examined the terms of the Power of Attorney (PoA) to ascertain the holder’s jurisdiction, and the PoA authorised the execution of sale documents. The court decided that the alleged offence was outside the jurisdiction of the court where the FIR was filed, emphasising geographical jurisdiction. In order to protect against unjustified prosecution, it also invoked Section 319 of the CrPC, which permits the trial court to insert additional accused people based on trial evidence.

Issues:

The issue is about how a Power of Attorney (PoA) should be interpreted and how that affects the execution of a sale deed. It concerns whether the appellant, who purchased land under the PoA-holder’s transaction Deed, may be held criminally accountable for any wrongdoing pertaining to the transaction. The court ascertained the scope of the holder’s power and concluded that disagreements over the legality of the Sale Deed and its criminal responsibility are within the property’s purview. It invalidated the FIR and subsequent proceedings against the appellant, emphasising the appellant’s protection from undue prosecution.

Court’s analysis and decision:

Following a review of the suggestions made by both parties, the court looked into the Power of Attorney (PoA) instrument and determined that the appellant was not liable for any misconduct on the part of the PoA holder. The court dismissed the FIR and related proceedings against the appellant since the sale deed was completed and registered in Dehradun and the landowners and PoA holder were the main parties involved in the issue. In light of the necessity to protect people from unjustified criminal prosecution, the court authorised the Trial Court to use Section 319 of the CrPC to potentially engage the appellant. The appeal was granted, and it was mandated that each side pay its own expenses.

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 Written by – Aastha Ganesh Tiwari

 

click here to read the judgment

Primelegal Team

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