Legal Issue
The Kerala High Court examined whether a power of attorney (PoA) executed by a person residing abroad and authenticated by an Indian Consulate can be used to sell immovable property in India without being registered under the Registration Act, 1908.
Background
The case arose from two writ petitions involving powers of attorney executed outside India. In the first case, property owners residing abroad executed a power of attorney in favour of a person in India, who later presented a sale deed for registration. The Sub-Registrar refused to register the document because the power of attorney had not been registered under Section 17(1)(g) of the Registration Act.
In the second case, a woman’s son-in-law executed a power of attorney in Dubai in her favour, which was authenticated by the Indian Consulate. However, when she presented a sale deed for registration on his behalf, the Sub-Registrar again refused registration, citing the absence of registration of the power of attorney in India.
The Single Judge had allowed both petitions, holding that authentication before an Indian Consulate under Section 33 of the Registration Act was sufficient.
The State challenged this decision before the Division Bench, arguing that authentication under Section 33 does not dispense with the separate requirement of compulsory registration under Section 17(1)(g).
Court’s Decision
A Division Bench comprising Dr. Justice A.K. Jayasankaran Nambiar and Justice Preeta A.K. allowed the State’s appeals and set aside the Single Judge’s judgments.
The Court held that Sections 32 and 33 of the Registration Act deal only with the procedure for presenting documents for registration, while Section 17(1)(g) independently mandates compulsory registration of certain powers of attorney relating to immovable property.
It clarified that although a power of attorney executed abroad and authenticated before an Indian Consul is valid for presenting documents before the registration authority, it must still be registered in India if it authorises the transfer or sale of immovable property and does not fall within the statutory exceptions.
Since the powers of attorney in both cases had not been registered, the Court held that the Sub-Registrars were justified in refusing to register the sale deeds executed on their basis.
Observation
The Court held that authentication of a power of attorney before an Indian Consulate under Section 33 of the Registration Act does not exempt it from compulsory registration under Section 17(1)(g). A foreign-executed power of attorney authorising the sale of immovable property in India must be registered before it can be used for such transactions.
Case Details
Case Title: Inspector General of Registration and Another v. Muhammed and Connected Matter
