This article has been written by Arushi Agarwal, pursuing the Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution from LawSikho. This article has been edited by Prashant Baviskar (Associate, Lawsikho) and Smriti Katiyar (Associate, Lawsikho).
Table of Contents
A power of attorney is a legal document that allows a person to appoint another entity or person to act on their behalf to manage their affairs. The person authorizing the other to act on his behalf is known as the principal, grantor, or donor. The person to whom the powers are given is known as the power of attorney (POA) holder or done or attorney or agent.
The powers conferred by the principal may be broad or limited. The agent can take decisions on matters such as business, financial, property etc., where the principal cannot be present based on the powers given to him under the power of attorney.
Power of Attorney is executed when the principal is not available or is not capable of carrying out their dealings. This may be due to the unavailability of the person in the specific geographical region where something needs to be done or due to the mental or physical incapacity of the person. Here, persons include natural as well as legal persons. A person who is incompetent to contract cannot validly execute a power of attorney. Some of the common circumstances where Power of Attorney can be executed are:
A special or specific or limited power of attorney is a legal document executed by the principal by which an agent is authorized to do some specific acts on his behalf. For E.g. an agent can be authorized to perform specific business-related tasks, close or operate business accounts etc.
The power of attorney becomes a special power of attorney when it is limited to specific responsibilities. The document will provide the agent with the target tasks and responsibilities that the agent has to perform for the principal.
S. No. | General Power of Attorney | Specific Power of Attorney |
1. | The tasks carried out by the agent are limitless and broad. | The tasks carried out by the agent are specific. |
2. | The authority conferred to the agent is not limited to a specific task. | The power is ineffective once the task has been completed by the agent. |
3. | It can still be effective on the death of the principal. | It comes to an end once the principal is incapacitated or dead. |
XYZ Pvt. Ltd. wants to file a criminal complaint in Delhi for cheating by Cleanup LLP. For this purpose, XYZ Pvt. Ltd. will be authorizing Mr Amit Dave, the branch head of their Mumbai office to represent it and appear on its behalf in the respective courts as may be necessary. XYZ Pvt. Ltd. also wants Mr. Sudip Das, Deputy Manager of the Mumbai branch, the power to act on its behalf in times when Mr Amit Dave cannot appear himself on behalf of the company. Draft a special power of attorney in favour of Mr. Dave.
POWER OF ATTORNEY
TO ALL TO WHOM THESE PRESENTS SHALL COME WE, XYZ Pvt. Ltd., a company incorporated under the Company’s Act, 2013, having its registered office at New Delhi, and CIN number ______, hereinafter referred to as the “Grantor” (which expression shall, unless repugnant to the subject, meaning or context thereof, be deemed to include its successors in interest and assigns) of one part;
NOW KNOW YE AND THESE PRESENTS WITNESS THAT WE do hereby nominate, constitute and appoint Mr. Amit Dave, having Aadhar No. ______, resident at Andheri, Mumbai, _________, currently works as the branch head of the Mumbai office of the Grantor; hereinafter referred to as “Attorney holder” of the other part; as lawful Attorney in its name and on its behalf to do, perform and execute with respect to the Criminal Complaint from time to time all or any of the following acts, deeds and things, that is to say:
WHEREAS:
The Grantor has to file a criminal complaint at Mumbai (the “Complaint”) against Cleanup LLP, a business partner of the Grantor, and in pursuant the Criminal Complaint, it is desirous of appointing the Attorney holder who shall represent him before the appropriate authorities in relation the Complaint and appropriate procedures thereafter in Mumbai.
Now therefore this deed witnesseth:-
The Grantor authorized the Attorney holder the power to do the following:
In case the Attorney holder is absent or for any reason unavailable to perform the powers authorized under the Power of Attorney; under those circumstances, the Grantor appoints Mr. Sudip Das, Deputy Manager of the Mumbai branch, the power to act on its behalf and to act as per the authorizations given in the Power of Attorney on behalf of the Grantor according to the Complaint.
The Grantor establishes that the powers given under the Power of Attorney are specific which are only limited to the specific criminal complaint to be filed by the company and shall not cover any other complaints or civil or criminal proceedings.
IN WITNESS WHEREOF WE, [_________________________] and [______] delegated signatories, acting for the Grantor have hereunto set my hand to this writing on this __ day of ______.
SIGNED AND DELIVERED by
By its authorized signatory
In the presence of
The authority is restricted to act only on certain matters or only a particular kind of transaction or to carry out a specific legal transaction for the Principal. The agent’s power of attorney expires on the completion of the transaction. If any fraud by the power agent does not bind the principal. He cannot be sued or otherwise held responsible for fraud by the agent. If the power does not authorize the agent to carry on a business except with limitations any act done by him in excess of such power will not bind the principal. A fortiori, an agent cannot by his acts bind the principal to a larger extent than he is empowered to do under the power of attorney.
Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.
LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:https://t.me/joinchat/J_0YrBa4IBSHdpuTfQO_sA
Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.