When the agent has himself interest in the property, which forms the subject matter of the agency, the agency cannot in absence of an express contract, be terminated to the prejudice of such interest.

RFA 71-21
ABDUL GHAFOOR ETC VS BABAR SULTAN JADOON ETC
2024 CLC 1415

It is trite law that admitted facts need not be proved.  

Scope and import of Section 202 of the “Act, 1872”.

Power of attorney is a written instrument in the shape of authorization by virtue of which the principal assigns to and confers upon a person, as his agent, the authority to perform specified acts on his behalf. In other words, the primary purpose of instrument of attorney is to assign or delegate the authority of principal to another person as his agent. The main object behind it is that the agent has to act in the name of principal and the principal also purports to rectify all the acts and deeds of his agent done by him under the authority conferred through the instrument. Power of attorney can either be general or special but in all circumstances, it must be strictly construed in the light of its recitals to ascertain the manner of exercise of the authority in relation to the terms and conditions specified in the instrument. A principal can revoke the deed of attorney at any time whereas Section 201 of the “Act, 1872” lays down the principles as to termination of agency in the following modes:-

i). by the principal revoking his authority; or

ii).by agent renouncing the business of the agency, or

iii).by business of the agency being completed; or

iv).by either the principal or agent-dying or becoming of unsound mind; or

v).by either the principal or agent being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors;

vi).by expiry of the period of agency, if any;

vii).by the destruction of a material part of the subjectmatter of the agency;

viii).the happening of any event which renders the agency unlawful or upon the happening of which, it is agreed between the principal and the agent that the authority shall determine; or

ix).by dissolution of the principal, where the principal is a firm or a company or other corporation.

In ordinary course whenever an attorney intends to alienate or transfer the property subject matter of the deed of attorney in favour of his near relation or kith and kin, he has to seek specific permission from the principal to that effect before entering into such transaction. The above are the general rules regulating the power of attorney. Section 202 of the “Act, 1872” is, however, an exception and depart from the general rules.

RFA 71-21

ABDUL GHAFOOR ETC VS BABAR SULTAN JADOON ETC

2024 CLC 1415