A power of attorney (PoA) is a legal authorisation that gives a person the power to act on behalf of another person. This could be a power of attorney for property or for matters of finance or medical care.
Once the purpose of the PoA comes to an end, the executor can revoke or cancel this legal instrument by following a specific procedure. However, before doing that, it becomes pertinent to understand the circumstances that allow the revocation or cancellation of a PoA.
When can a PoA be cancelled?
Express intent
If the principal (executor of a PoA) deems fit that the agent (person who represents the principal) should be snatched off his authority, he can revoke the PoA.
Stated purpose
A PoA can be cancelled when its stated purpose is completed. For example, if a PoA was created for the sale of a property, its applicability ends with the sale.
Time frame
When the time frame of its applicability ends. This means that the principal should never leave the time frame open-ended.
Breach of contract
The principal can revoke the PoA if the agent is in breach of the contract.
Agency insolvency
The principal can revoke the PoA if the agent has gone insolvent.
Agency lunacy
The principal can revoke the PoA if the agent has become unsound of mind.
Demise of agent
A PoA gets cancelled at the demise of the agent.
See also: Power of attorney format
When can a PoA not be cancelled?
In the above-mentioned cases, the approval of the agent is not required to cancel the PoA. However, the same is not true if the agent has an interest in the subject matter.
Section 202 of the Indian Contract Act, 1872, defines termination of the agency, where the agent has an interest in the subject matter, as: ‘where the agent has himself an interest in the property, which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest’.
Process of PoA cancellation
Step 1: Draft a PoA revocation deed, mentioning the reason for its cancellation. Also, mention the date from which the revocation should be effective.
Step 2: Approach the same authority that registered the PoA for its cancellation.
Step 3: Send a copy of the cancellation deed to the agent and the people he/she has been interacting with on your behalf.
Step 4: Get the registered cancellation deed published in newspapers.
Know more about NRI power of attorney to buy property in India
Power of attorney cancellation deed format
STAMP PAPER WORTH RS.
REVOCATION OF GENERAL POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS THAT I, _________________________ by a General Power
of Attorney executed at, ____________________________ and registered in the office of Sub-Registrar, at, _______________________ vide Document No. ______________________ , dated __________________________ had appointed _________________________ as my true and lawful General Attorney in respect of my immovable property , measuring ________________________ of the, ____________________________________ .
And whereas for personal reasons and consideration, it has become necessity for me to revoke all the power.
NOW KNOW YE ALL THAT by this Deed, I cancel the said General Power of Attorney, absolutely and completely and revoke all power or authority thereby and thereunder given to him/her before revocation either expressly or impliedly to do all acts, deeds, intents and purposes regarding the said property.
IN WITNESS WHEREOF, I put my signatures on this Revocation of General Power of Attorney at _____________________ on this _________________________ .
EXECUTANT
WITNESSES:-
1
2
FAQs
Can a power of attorney be cancelled?
Yes, the principal is free to cancel a PoA. However, this can’t be done in case the agent has an interest.
When can a power of attorney not be cancelled?
A PoA cannot be cancelled without the approval of the agent in case he/she has an interest in the subject matter. Suppose, Ram has taken a loan of Rs 50 lakhs from Shyam and has given Shyam a PoA to sell his land on his behalf and use the proceeds to pay himself off. In this case, Ram cannot cancel the PoA without the express approval of Shyam.
