The powers to sell the property does not include the power to enter into an agreement to sell as in the powers of the sale the consideration amount is received and property is sold out; however, ...

Case Laws December 12, 2023

The powers to sell the property does not include the power to enter into an agreement to sell as in the powers of the sale the consideration amount is received and property is sold out; however, the agreement to sell binds both the parties in accordance with the terms of agreement to perform their part in future. Therefore, when a specific power of entering into an agreement to sell of the suit property was not given to attorney, he was not competent to enter into any kind of agreement to sell on the behalf of the petitioners/ principals/ owners of the disputed property, because in case of ‘sale’ a transaction is completed, rights and liabilities of the parties are determined through an instrument of sale and with the registration and completion of the same, no further liability of parties remains against each other; as against this, in case of agreement to sell both the parties are bound to perform the terms and conditions of agreement to sell in future, thus, until and unless an attorney is given and bestowed with specific powers to bind the principal for performance of terms of the agreement in future, the attorney cannot bind the principal and enter into agreement to sell of property owned by the principal(s). In such scenario, the alleged agreement to sell, sought to be enforced through suit for specific performance in the instant case, is bad on the basis of having no powers with the attorney to enter into agreement to sell of the suit property.