Quiz 2: Final Assessment — Power of Attorney — Drafting & Execution

Question 1 of 10

The 2012 Supreme Court judgment in Suraj Lamp v State of Haryana held that:

AGPAs are void for all real estate transactions BA GPA is not an instrument of transfer of ownership; immovable property can only be transferred by a registered sale deed CGPA holders acquire full title upon execution DStamp duty on GPAs has been abolished nationwide

Question 2 of 10

A PoA is executed on wrong stamp value (Rs. 100 instead of the required Rs. 5,000). Consequence?

AThe PoA is void BInadmissible until the stamp deficit and applicable penalty are paid CValid because stamp duty is fiscal, not substantive DState may recover only the deficit

Question 3 of 10

An attorney holds a PoA coupled with interest — she was appointed to recover a debt from a third party and keep the recovered sum in discharge of the principal's debt to her. The principal now attempts revocation. Under Section 202:

ARevocation is fully effective; the attorney has no remedy BRevocation cannot prejudice the attorney's interest — the PoA remains enforceable to the extent needed to protect the attorney's interest CRevocation is valid only if the third party consents DRevocation triggers automatic damages

Question 4 of 10

A PoA specifies termination on 31 March 2027. On 15 March, the principal wants to revoke. Can he?

ANo — the specified duration is binding BYes — the principal can revoke at any time (subject to the coupled with interest exception) CNo — revocation requires the attorney's consent DYes — but only by publishing a notice in the Official Gazette

Question 5 of 10

Under Section 208, what protection does a third party who dealt with an attorney in good faith without notice of revocation have?

ANo protection BThe transaction is binding on the principal as if the revocation had not occurred, until the third party has notice of the revocation C30 days to reverse the transaction DCan sue only the attorney, not the principal

Question 6 of 10

A PoA to sell immovable property is executed. The attorney executes a sale deed in favour of a third party. After Suraj Lamp, ownership is effectively transferred by:

AThe PoA itself BThe sale deed executed by the attorney on behalf of the principal CA subsequent mutation in revenue records DA court order confirming the transaction

Question 7 of 10

A PoA is executed by a company in favour of its MD for signing a specific contract. Which is essential for validity?

APersonal guarantee from the MD BExecution under common seal or by an authorised signatory with a board resolution CNotarisation by the company secretary DPublication in the annual report

Question 8 of 10

An NRI grants a GPA to his father to manage his affairs including selling property. GPA is silent on stamp duty. Executed in New York and apostilled but not registered. Father presents at Mumbai sub-registrar to sell a Mumbai property. Issues?

AThe PoA is fully usable as executed BMust be presented for registration in India within 4 months; must be adequately stamped for Maharashtra; only then can be used CVoid because not executed in India DFather must obtain a fresh PoA executed in India

Question 9 of 10

A PoA is executed by a hospitalised principal who dies two days later before the attorney has acted. Status?

ARemains valid, attorney can complete pending transactions BTerminated automatically on the principal's death CValid until the executor takes over DCan be revived by heirs

Question 10 of 10

Most accurate statement about PoA revocation?

AEffective as soon as decided by the principal, regardless of communication BRequires a written deed and should be communicated to the attorney and to third parties; registration required if original PoA was registered CMust be sanctioned by court DRequires the attorney to formally accept it

Quiz 2 — Final Assessment