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| Power of Attorney explained - Mukhtar Nama |
In the name of ALLAH, the most beneficent, the most
merciful
1.
What is Deed of Power of Attorney?
2.
Types of
Power of Attorney
3.
Registration of Power of Attorney?
4.
How to Write a Power of Attorney?
5.
Stamp duty on Power of Attorney in
6.
Registration Fee / Charges of power of attorney?
7.
Reported Judgment/ Citation on Power of
Attorney, which is not required to be registered ?
8.
How many Witnesses on Power of
Attorney?
9.
Cancellation of Power of Attorney?
10. Irrevocable Power of Attorney?
11. Power
of Attorney from Abroad to
1.
What is Deed of Power of Attorney?
Power of Attorney (also
known as Mukhtar Nama) is a written instrument/ deed, by which a person authorizes
another person to act and deal all or some of his matters on his behalf.
Let
me explain two terms which are commonly used when talking about power of
attorney:-
Principal/ Grantor: Principle/Grantor is the person who authorizes someone to do
any particular act or some particular acts, on his behalf.
Agent/ Attorney:
The person who is authorized by the Principle/Grantor is called the “Agent/Attorney”
2. Types of Power of Attorney
Generally, there are two types
of Power of Attorney:- (i) Special Power of Attorney” (ii) General Power of Attorney.
i.
Special
Power of Attorney:
The Deed of Special Power of attorney
is an instrument, by which, the Principle/ Grantor can authorize the Agent to do
a special/ particular task. Means, the holder of a Special Power of Attorney can
perform that limited/ Special/ particular task assigned in the Special Power of
Attorney. Following are few examples, in which, the Special Power of Attorney
can be used:-
a.
Courts
Proceedings:- A person is very much busy and his cases, either filed by him or to be
filed by him or filed against him, are pending before the courts. So in this
case, he can authorize or nominate someone as his Agent or Attorney to pursue
his cases.
Click here to download Special Power of Attorney for court Cases in English
Click
here to download Special Power of Attorney for court Cases in urdu (Mukhtar
Nama Khas)
b.
Property
Matter: If a person is busy or unable to
lookafter /manage his property, he can authorize someone as his Attorney /Agent,
giving powers to the agent to manage, lookafter, rent out the property, to induct
any tenant, to receive the rent, to eject that tenant, to pay taxes etc with
regard to any property of Principal/ Grantor.
c.
To
receive cheque of hiring:- If any
property is taken on rent/ hired by any department, and the cheques on account
of rent of that property are issued by the department in the name of owner of
that property and if the owner of that property is busy or for somewhat reason
unable to collect the cheque, he may give authority by way of executing a
Special Power of Attorney to collect the cheque issued against rent of the
house from the department concerned.
d.
There can be
a lot of other purposes as well, for which, one may be required to execute a
Special Power of Attorney.
ii. General Power of Attorney: General Power of
Attorney is an instrument by which, the principal/ Grantor can give vast powers
to an Agent with regard to some matters either of immovable property or some
other things. For example, a person has many properties and that too in
different cities. And he is either busy or staying abroad or a Parda Nasheen
Lady (in case of a lady), he/she can execute a General Power of
Attorney, giving detail (recommended) of all the properties in Deed of General
Power of Attorney, can authorize an agent to do all the acts, deeds, things in
connection with all the property of Principal/ Grantor. Wide Powers can be
given to an Agent by the Grantor through deed of General Power of Attorney, for
example to manage, lookafter, supervise, induct tenant, rent out, receive rent,
to file Ejectment petition, to do any other legal proceedings, to retain, sell,
alienate, surrender, gift out, surrender, mortgage the property, to purchase
stamp paper, to refund the stamp paper, to apply for demarcation, to apply for
partition , to engage any lawyer, to apply for loan, to get loan. Means,
General Powers i.e Vast Powers can be given by way of Deed of General Power of
Attorney.
3. Registration of Power of Attorney?
People might be confused from
two things:-
First one is that which Power of Attorney should be get registered?
Either Special Power of Attorney is required to be registered or General Power
of Attorney is required to be registered or any Power of Attorney related to the
immovable property is required to be registered?
Second thing, from which Department, Deed of Power of Attorney should
be registered?
The answer of first
question is that any Power of Attorney (either Special Power of Attorney
or General Power of Attorney) which constitutes an agreement to create,
declare, assign, limit or extinguish, by way of sale, any right, title or
interest of the value of one hundred rupees and upwards, to or in immovable
property, or the Power of Attorney, which is given for the purpose of selling
out, transferring, alienating any immovable property is required to be compulsorily
registered.
However, other Power of
Attorney (either Special Power of Attorney or General Power of Attorney) for
any other purpose like pursuing court cases etc, management of property, renting out of property, is not required to be compulsorily
registered. It does not mean that such
kind of Power of Attorney cannot be registered with Sub-Registrar, it can
definitely be registered in the office of Sub-Registrar but its optional not
mandatory.
The answer of second
question is that the Deed of Power of Attorney, in which the Agent has been
conferred with the powers to sell out any immovable property, is required to be
registered with the Sub Registrar Concerned. Only Notarized Power of
Attorney is not valid for selling out the immovable property. Registration of Power of Attorney with
Sub-Registrar concerned is mandatory to sell out or transfer the property.
4. How to Write a Power of Attorney?
The
Power of Attorney should be drafted by a competent Lawyer or professional
person who has expertise in drafting skills, because any deed including Power
of Attorney which is not drafted by a competent lawyer or professional person may
contains many discrepancies which would result into causing severe complications.
Click here to download Special
Power of Attorney format in English (House and cases)
Click here to download Special Power of Attorney format in Urdu (House and cases)
Click here to download General
Power of Attorney format in English (House)
Click here to download General
Power of Attorney format in Urdu (House)
5. Stamp
duty on Power of Attorney in
Payment of Stamp Duty depends
on number of things which are as follows:-
i.
What
is the purpose of execution of power of attorney? Either selling out immovable
property or any other purpose except selling out immovable property
ii.
In
whose favour Power of Attorney is being executed, either in favour of blood relative
or other?
In Punjab, if the
purpose of Power of Attorney is to give some authority in respect of any court
case or cases, then only Rs. 500/- on account Stamp Duty of Power of
Attorney is required to be paid and this kind of Power of Attorney is called
Special Power of Attorney means for special /particular purpose i.e
which is to pursue the
court case
If the power of
attorney is given for the purpose of only renting out, management, induction of
tenant in the property, in this case too, only Rs. 500/- as Stamp Duty is
required to be paid. This Power of Attorney may also be called Special Power of
Attorney. Usually, this deed of power of
attorney is attested / Stamped by Notary Public only and not requires any
registration with Sub Registrar concerned. However, it can be registered with
Sub Registrar concerned if desired so, by paying registration charges Rs. 25/-along
with Stamp Duty (Rs. 500/-) and same information should be put when filling
E-Challan. The generated E-Challan will
be of Rs. 525/- in total.
If you want to appoint
your blood relative i.e your father, mother, sister, brother, as your Attorney,
for selling your immovable property, you are now required to pay Rs. 1200/-
as Stamp Duty. Because, this power of attorney is for selling of immovable
property therefore, its registration with concerned sub registrar is mandatory and
in this case, Rs. 25/- is also required to be paid as registration
charges.
If you want to appoint
any other person other than blood relative i.e your friend or cousin
etc, for selling out an immovable property, you are now required to pay 2% (Two Percent)
of DC Value (Rate of property as per Deputy Commissioner of concerned
District). Because, this power of
attorney is for selling of immovable property therefore, its registration with
concerned sub registrar is mandatory and in this case, Rs. 500/- or Rs. 1000/-
(as the case may be, detailed
below) is also required to be paid as registration charges.
6. Registration Fee / Charges of power of
attorney?
If you are going to
get register any Power of Attorney, containing Powers to pursue court cases,
or manage any property etc only, an additional amount of Rs. 25/- is
required to be paid as registration fee besides stamp duty (Rs. 500/- in
Punjab). This amount of Rs. 25/- will be
added with Stamp Duty when filling E-Challan for obtaining
Stamp Paper for Power of Attorney.
If you are going to
get register any Power of Attorney, containing Powers to sell any immovable
property (In Punjab) The registration charges/ fee in this case depends on
various things for example in whose favour the Power of Attorney is executed either
in favour of Blood relative or non-blood
relative?. So If:-
In favour of Blood
Relative i.e son, father, sister,
brother etc, then only Rs. 25/- is required to be paid as registration Charges
and same amount will be added at the time of filling E-Challan for obtaining
Stamp Papers.
In favour of any other
person, i.e Your friend, cousin etc,
then Rs. 500/- is required to be paid
as registration Charges if the amount of Property does not exceed Rs. 500,000/-,
and in case the amount of property exceeds Rs. 500,000/-, then Rs. 1000/- is
required to be paid as registration charges along with Stamp Duty, and same
will be added at the time of filling E-Challan.
7. Reported
Judgment/ Citation on Power of Attorney, which is not required to be registered
?
2016 C L C
1838
( Muhammad Anwar
versus Additional
District and Sessions Judge and 2 others)
Registration Act (XVI of
1908)---
----S. 17---Power of attorney---Registration
of---Scope---Power of attorney in question had not conferred on the attorney
any right, title or interest in the immovable property rather it was for the
purpose to initiate legal proceedings or defend the same with regard to
property in question---Such document was not compulsorily register able.
8. How many Witnesses
on Power of Attorney?
The names of two witnesses
must be written on Power of Attorney either General Power of Attorney or
Special Power of Attorney and their signatures/ thumb impressions should also
be obtained.
The procedure for execution of any document, through which
some one derives financial powers and future obligations has been described
under Article 17 of the Qanun-e-Shahadat Order, 1984, which is
reproduced herein below:--
"17. Competence and number of witness.---(1) The competence of a person to
testify, and the number of witnesses required in any case shall be determined
in accordance with the injunction of Islam as laid down in the Holy Quranand
Sunnah.
(2) Unless otherwise provided in any law relating to the
enforcement of Hudood or any other special law,
(a) In matters
pertaining to financial or future obligations, if reduced to writing, the
instrument shall be attested by two men, or one man and two
women, so that one may remind the other, if necessary and evidence shall be led
accordingly; and
(b) In all other matters, the Court may accept, or act on,
the testimony of one man or one woman or such other evidence as the
circumstances of the case may warrant."
The above provision of the
law makes it mandatory that every document pertaining to financial or future
obligation must be attested by two men, or one man and two women. The purpose
of attestation of such instrument by two men or by one man and two women is
that one may remind the other to prevent doubt about the instrument, so as to
protect the rights of the parties.
9. Cancellation of Power of Attorney?
If the Principle/ Grantor of
Power of Attorney dies, the Power of Attorney automatically stands cancelled. If
the Agent / Attorney holder dies, in this case too, the Power of Attorney automatically
stands cancelled. If the purpose of Power of attorney is fulfilled, then power
of attorney also stands cancelled.
However, if all above has not
happened, and the Principle/ Grantor requires the Power of Attorney to be cancelled
either due to the reasons that the Agent is going to commit fraud or due to any
other reason, the Principle/ Grantor has to follow some steps, detailed below:-
Process of cancellation of
Power of attorney (registered with Sub Registrar) is different from process
of cancellation of power of attorney (only notarized, and not registered
with Sub Registrar Office)
If you intend to cancel that
Power of Attorney which is registered in the Office of Sub-Registrar, you are
required to write / Execute a Deed of “Revocation of Power of Attorney/
Cancellation of Power of Attorney” known as “Abtaal Nama”, mentioning all the
detail of your deed of power of attorney earlier executed, and also the reason
for canceling/ revoking it. This
revocation of power of attorney is written on Stamp Paper and same is also registered
with sub-registrar concerned.
You should also send a written
notice to your agent, intimating him about cancellation of power of attorney.
However, if that Power of
Attorney which is only notarized, is intended to be cancelled, then execution
and registration of deed of revocation with sub registrar is not required. You (being
Principle/ Grantor) can intimate the Agent about cancellation of power of
attorney and you can also get publish a press clipping, detailing therein about
revocation of power of attorney.
10. Irrevocable Power of Attorney?
Generally, the Power of
Attorney is revocable however, in some cases the Power of Attorney becomes
irrevocable (Naqabal-e-Tanseekh,) means which does cancelled automatically even
on the death of Principle / Grantor too.
That kind of Power of
Attorney is called irrevocable which is executed against consideration. For
example, the Principle/ Grantor execute a Power of Attorney (either General or
Special) in favour of his Agent about any property and receives its sale
consideration from the Agent. This kind of Power of attorney is called
irrevocable Power of Attorney because, in this case the agent has interest in
the property as he has paid sale consideration to the Principle/ Grantor for
the property mentioned in the deed of power of attorney.
11. Power of Attorney
from Abroad to
If the person who wish to appoint some one as his Special
or General Attorney, and he is out of
Pakistan, may be in UK, USA, Canada etc, in this case, he is required to write
/ type Power of Attorney (Special or General) print it out, place two
witnesses, sign it, and get it attested from the Embassy / Consulate of
Pakistani that that country where Principle is currently residing in, and then
send original Power of Attorney to Pakistan.
Download Power of Attorney for Overseas Pakistan
In
Remember! As described above, that some power of attorney
requires registration and others are not. So, if this power of attorney
requires registration then get it registered with Sub Registrar concerned and if
it does not require registration, then no need to get it registered.
Thanks.
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