In State of Rajasthan and others v. Basant Nahata MANU/SC/0547/2005 : 2005 (61) ALR 9 (SC) (Sum.):2005 (34) AIC 378 :(2005) 12 SCC 77 the Supreme Court clarified the nature of a power of attorney in the following observations :
A grant of power of attorney is essentially governed by Chapter X of the Indian Contract Act.
By reason of a deed of power of attorney, an agent is formally appointed to act for the principal in one transaction or a series of transactions or to manage the affairs of the principal generally conferring necessary authority upon another person.
A deed of power of attorney is executed by the principal in favour of the agent.
The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed, the same shall be read as if done by the donor.
A power of attorney is, as is well-known, a document of convenience.
Execution of a deed of power of attorney, therefore, is valid in law and subject to the provisions of the Act is not compulsorily registerable.
Referred and relied in Krishna Kant Mishra vs. State of U.P. (30.05.2014 - ALLHC) : MANU/UP/1523/2014
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