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Irrevocable General Power of Attorney

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Irrevocable General Power of Attorney

I struck a deal for a property with A. I paid A the entire amount. My agreement to sell (iqrar nama) was drawn up. Now I don't have the money to get the registry done — for the property I purchased, for which I have already paid the full amount, I now don't have the money to get its registry done, so I ask the seller to give me a general power of attorney, a mukhtar nama aam. Now, in this general power of attorney, the owner granting the authority formally gives the buyer all the general powers that he, as owner, is entitled to — but along with this, he also includes a statement that I have already received the entire sale amount for this property; because of this, this general power of attorney will become irrevocable — an irrevocable mukhtar nama aam — because now the interest of the attorney has become bound up in it, because the money for the property for which the general power of attorney is being granted has already been paid to the owner, and now he has appointed him as general attorney. Now here is the thing worth examining — if such a situation happens to you, in this general power of attorney one thing you would have already had written is that I have received the entire amount, or that they have received the entire amount — one more line also needs to be included in it, that the person appointing the attorney (the owner) will write that if I die, my heirs will be bound to have this general power of attorney, or this general attorney, get the registry done in the name of whoever he directs — that my heirs will have no connection with this property as owners. This becomes an irrevocable general power of attorney — irrevocable, meaning all of his rights, all of his interest, has been excluded, and he has bound his heirs that if I die, you will register the property in the name of this general attorney, or you will give the property to whomever he directs. If these things are part of the general power of attorney, then it becomes an irrevocable general power of attorney. This is one example I have given — there can be countless other examples. Now the other matter — revocable general powers — that I am ill, I live far away for business reasons, I am abroad for a job, I want to sell this property, I cannot manage this property, I cannot handle litigation related to this property — every task that I could lawfully do, my general attorney will do it regarding this property, or more than one property. Now when these general powers come to you, it means the general power of attorney is bound by certain things. Number one: if he does something — sells, rents out, gifts, does anything — any such act as general attorney in which consideration is involved, in which money is involved, and he is receiving that money, then it will be the general attorney's duty to get that money to the owner on record — whether it is sale proceeds or rent money. When these general powers come with them, the general attorney's responsibilities are attached to them — the general attorney is not discharged of responsibility. Keep this in mind: that general power of attorney can be revoked — it is not irrevocable, it can be revoked. This was the irrevocable one. Now if it is an irrevocable power of attorney, in which the general attorney — meaning the owner who is appointing the general attorney — has his own interest bound up in it, the question arises whether the owner has no power at all to get this power of attorney revoked. The answer to this question is that yes, he fully retains this power, but to exercise that power he will have to state reasons. In this process of revocation he will have to state the reasons on the basis of which he is revoking it, and if it is an irrevocable general power of attorney, the Sub-Registrar will not cancel it unless the reasons given make sense; if no reason is given, the Sub-Registrar will not effect the cancellation, and even if someone gets it cancelled through bribery or influence, it will have no legal standing — that no reason was given, only the process of cancellation was carried out and registered — that is not a cancellation; the law says that is not a cancellation. I will give you a judgment: 2017 CLC page 48, Islamabad. In it, the general power of attorney in favour of a certain person was an irrevocable power of attorney; the original owner had it revoked and sold the property to someone else, while the general attorney had sold that property to someone else — the court refused to accept the owner's claim that he had gotten that power of attorney revoked before the attorney entered into the agreement to sell it. The court said: in this process of revocation, what reason did you give? There was no reason given in this revocation process, so the court said this was an irrevocable general power of attorney, and therefore you did something unlawful — the sale made by the owner was cancelled, and the sale made by the general attorney was upheld.

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