Irrevocable Power of Attorney

Stamp duty

Chargeable under Article 48 "Power of Attorney" of Schedule 1-A to the Indian Stamp Act, 1899 as applicable to Punjab (and as extended to the Union Territory of Chandigarh), which carries different sub-clauses and rates depending on the number of persons authorised, whether the power is given for consideration, and — the one that matters most here — whether it authorises the Attorney to sell immovable property. Where this Power authorises sale, mortgage or other conveyance of immovable property (the first option in the sale-power clause below) and is given for consideration, Punjab's and Chandigarh's stamp schedules commonly charge such a power at the same ad valorem rate as a conveyance of that property — a rule aimed directly at preventing the "GPA sale" practice the Supreme Court disapproved of in Suraj Lamp. Where it does not authorise sale, or is not given for consideration, a lower fixed or slab-based Article 48 duty applies instead. Confirm which sub-clause and figure currently apply, and the current registration fee, at the Sub-Registrar's counter (in Punjab, via igrpunjab.gov.in; in Chandigarh, at 30 Bays Building) before buying stamp paper — this document does not print a duty figure because which sub-clause applies depends on facts this form collects but the Stamp Act schedule itself must still be checked against them.

Registration

Not automatically compulsory merely because this Power relates to property — a power of attorney is an authority to act, not itself an instrument transferring an interest in immovable property, so s.17 of the Registration Act, 1908 does not reach it on that ground alone. Two things commonly make registration necessary or simply the right call in practice, and the clause below records which applies: first, s.33 of that Act requires a power of attorney used to present a document for registration, or to admit execution on the Principal's behalf, to itself be registered or authenticated by a registering officer, a Magistrate, or (if executed outside India) a notary with consular attestation, before it can be used for that purpose — an unauthenticated power is refused at the counter. Second, given the Suraj Lamp background, a Sub-Registrar, a bank or a later purchaser dealing with the Attorney is increasingly likely to insist on a registered power before accepting anything done under an irrevocable, sale-authorising power given for consideration, whether or not the letter of the law compels it on the facts. Where either applies, present this Power for registration at the Sub-Registrar of the tehsil where the Principal resides or the property lies, in Punjab, or the Sub-Registrar, Union Territory of Chandigarh, in Chandigarh.

Notarisation

Where this Power is not being registered, have it notarised before an Oath Commissioner or Notary Public in Punjab or Chandigarh, which is the minimum most banks, purchasers and government offices will expect for a document of this weight. If the Principal is outside India, the Power needs consular attestation (or apostille, where the destination country is a Hague Apostille Convention member) in addition to local notarisation before it can be used or registered in India.

Witnesses

Two witnesses, adults, not parties to this Power, should attest it whether or not it is registered — practice at both the Punjab and Chandigarh registering offices expects this for a power of attorney presented for registration or authentication, and it is sound practice even where the Power is only being notarised.