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of <h1>Sale deed registration declared invalid due to defective power of attorney verification by registering officer</h1> <h3>Asset. Reconstruction Company (India) Limited Versus The Inspector General of Registration and Ors.</h3> Asset. Reconstruction Company (India) Limited Versus The Inspector General of Registration and Ors. - TMI 1. ISSUES PRESENTED and CONSIDEREDThe core legal issues considered in this judgment are:Whether the petitioner has locus standi to file the writ petition challenging the registration of the sale deed.The validity of the registration of the sale deed dated 5.7.2007, executed by respondent No. 5 on behalf of respondents No. 3 and 4, in light of the alleged lack of authorization in the power of attorney.The maintainability of the writ petition under Article 226 of the Constitution of India, given the existence of alternative remedies such as civil suits.The obligations of the registering authority under the Registration Act, 1908, particularly regarding the verification of the power of attorney used for executing the sale deed.The implications of the Standing Order No. 533 of the Tamil Nadu Registration Manual on the registration process.2. ISSUE-WISE DETAILED ANALYSISLocus Standi:The Court examined whether the petitioner, having acquired rights through an assignment deed dated 7.12.2007, has the standing to challenge the registration of the sale deed. The Court emphasized that locus standi is concerned with the existence of a right, not its extent. The petitioner, stepping into the shoes of the Indian Bank, possesses the right to challenge the registration based on the assignment deed, thus affirming the petitioner's locus standi.Validity of the Sale Deed Registration:The Court scrutinized the validity of the sale deed dated 5.7.2007, executed by respondent No. 5 under a power of attorney that allegedly lacked the authority to sell the property. The registered power of attorney dated 23.8.2006 did not include the power to sell, and the unregistered power of attorney dated 7.6.2007, purportedly rectifying this omission, was not referenced in the sale deed. The Court concluded that the registration was void ab initio due to the lack of proper authorization, rendering the act of registration by respondent No. 2 invalid.Maintainability of the Writ Petition:The Court addressed the respondents' argument that the petitioner should have pursued a civil suit instead of a writ petition. It rejected this contention, stating that the petitioner is not seeking to resolve disputed facts but is challenging the registration process based on legal grounds. The Court held that the writ petition is maintainable as it concerns the legality of the registration process, not the underlying property dispute.Obligations of the Registering Authority:The Court analyzed the obligations of the registering authority under Sections 32, 33, and 34 of the Registration Act, 1908. It emphasized that the registering officer must verify the power of attorney to ensure the executant is duly authorized. The failure to verify the power of attorney in this case resulted in a lack of jurisdiction, rendering the registration void.Standing Order No. 533:The Court examined the relevance of Standing Order No. 533, which the respondents cited to justify the lack of verification of the power of attorney. The Court clarified that the Standing Order pertains to the presentation of documents for registration, not the execution of sale deeds, and thus does not absolve the registering authority of its duty to verify the power of attorney.3. SIGNIFICANT HOLDINGSThe Court held that the petitioner has the locus standi to challenge the registration of the sale deed due to the rights acquired through the assignment deed. It concluded that the registration of the sale deed was void ab initio due to the lack of proper authorization in the power of attorney. The writ petition was deemed maintainable as it addressed legal issues concerning the registration process, not the underlying property dispute. The Court emphasized the duty of the registering authority to verify the power of attorney and rejected the applicability of Standing Order No. 533 in this context.Core Principles Established:A valid power of attorney is essential for executing a sale deed, and its verification by the registering authority is mandatory.A writ petition is maintainable to challenge the legality of the registration process, even if alternative remedies exist.The locus standi of a petitioner is determined by the existence of a legal right, not its extent.The Court allowed the writ petition, setting aside the registration of the sale deed and granting liberty to the parties to pursue further legal remedies if necessary.
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