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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: (i) Whether the power of attorney, on a proper construction of the document and surrounding circumstances, was an irrevocable power coupled with interest so as to be incapable of revocation. (ii) Whether, on revocation of the power of attorney, the plaintiffs were entitled to amend the plaint by deleting the attorney holder from the cause-title.
Issue (i): Whether the power of attorney, on a proper construction of the document and surrounding circumstances, was an irrevocable power coupled with interest so as to be incapable of revocation.
Analysis: The controlling test was the substance of the instrument and not its title or the mere use of the word "irrevocable". A power of attorney becomes irrevocable only when the document, read as a whole, shows that an agency coupled with interest was created in favour of the agent. The terms of the document, the purpose for which it was executed, and the surrounding circumstances had to be considered to ascertain the real intention of the parties. On that construction, and in light of the admitted absence of any personal interest in the property, the instrument did not disclose any proprietary or beneficial interest in favour of the attorney holder.
Conclusion: The power of attorney was not an irrevocable power coupled with interest and was liable to be revoked.
Issue (ii): Whether, on revocation of the power of attorney, the plaintiffs were entitled to amend the plaint by deleting the attorney holder from the cause-title.
Analysis: Once the authority of the attorney holder was found not to be irrevocable in law, the basis on which he continued to represent the plaintiffs in the suit ceased to survive. The amendment sought was only to reflect the legal consequence of revocation and to correct the cause-title accordingly. In those circumstances, the refusal to permit amendment could not be sustained.
Conclusion: The amendment application ought to have been allowed and the deletion of the attorney holder from the cause-title was warranted.
Final Conclusion: The impugned order was set aside and the plaintiffs' application was allowed, with the suit proceeding in accordance with the amended cause-title.
Ratio Decidendi: A power of attorney is irrevocable only if the instrument, construed as a whole, shows an agency coupled with an interest in favour of the agent; the mere description of the document as irrevocable does not make it so.
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