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The relevant observations read as under:-

“…Even though it is observed that Exs.D-4 and D-5 were contemporaneous documents executed by Sri. Muniyappa @ Ruttappa in favour of Smt. A. Saraswathi, by that itself, it cannot be concluded that, the said Smt. A. Saraswathi had any interest in the Power of Attorney at Ex.D-4. It is for the reason that the said document at Ex.D-4 nowhere expressly mentions as to for what reason the executant was made to execute the said document and more particularly, the executant has nowhere whispered in it that the attorney has acquired any interest in the property mentioned in the said Power of Attorney. However, the said Power of Attorney – Smt. A. Saraswathi whether is having any interest under the said irrevocable Power of Attorney has to be gathered from the circumstance of the case and the position of law. If it can be concluded that she had acquired interest by virtue of Exs.D-4 and D-5, then probably, Section 202 of the Contract Act may come into picture. Otherwise, it would be Section 201 of the Contract Act that may come into operation.”
(iii) Thirdly, the principal contention of the appellants was that since the holder of POA had an interest in the property which is the subject-

matter of the POA, the POA would not come to an end on the death of the executant by virtue of Section 202 of the Indian Contract Act, 1872 (for short, “the Contract Act”). The High Court held that executing a POA, including an irrevocable one or an agreement to sell for immovable property, does not automatically transfer any right or interest to the beneficiary, such as the attorney or agreement holder. By referring to the decisions of the High Court of Rajasthan in Prahlad & Ors. v. Laddevi & Ors., reported in 2007 SCC OnLine Raj 19 and the High Court of Karnataka in Wajid Pasha v. The Chairman, Bangalore Development Authority, reported in 2013 SCC OnLine Kar 10135, the High Court held that the purpose for which the GPA was executed had not been stated either in the GPA or the agreement to sell. It was observed that indisputably, the holder of POA did not enforce the agreement to sell against the legal representatives of the executant of the POA. After the death of the executant, the holder of POA transferred the Suit Property to her son i.e., the appellant no. 2, for a sale consideration of Rs. 84,000/- which was considerably higher than the amount she paid for the Suit Property to the original owner. Thus, the High Court held that the case of the appellants would not be covered by Section 202 of the Contract Act and that the POA did not create any right or interest in the favour of the holder of the POA. The relevant observations read as under:-

17. Ms. Rehmani submitted that the fact of execution of the POA and the agreement to sell in favour of the holder by the original owner in exchange of sale consideration is not disputed. Since both the POA and the agreement to sell are in favour of the same person, they should be read together and construed harmoniously. The holder of POA executed the registered sale deed dated 01.04.1998 in favour of the appellant no. 2. Further, there is no challenge to the validity of the GPA and agreement to sell dated 04.04.1986 and the registered sale deed dated 01.04.1998. The GPA specifies that it had been executed for the purpose of the Suit Property. It specifically mentions that it is ‘irrevocable’ and the schedule to the GPA references the particulars of the Suit Property. The GPA read with the agreement to sell would indicate that it had been executed for a valid sale consideration, and possession of the Suit Property was also delivered to the holder of POA. Thus, she had an interest in the subject-matter of the agency being irrevocable. By placing reliance on Section 202 of the Contract Act, he submitted that where the agent himself has interest in the property which forms a subject-matter of the agency, the agency cannot be terminated to the prejudice of such interest of the agent. In the facts of the case, Section 202 of the Contract Act is applicable and not Section 201.

33.Section 201 of the Contract Act prescribes various ways of revocation of authority given by the principal to his agent. A principal can terminate the contract of agency unless such revocation is precluded by Section 202 of the Contract Act. Section 202 of the Contract Act, as an exception to the general rule under Section 201, prescribes that where an agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot be terminated to the prejudice of such interest unless there is an express stipulation to the contrary.