Bijimon P. S/o. K. N. Prabhakran v. Kerala State Financial Enterprises Limited(KSFE)
2021-01-06
P.V.ASHA
body2021
DigiLaw.ai
JUDGMENT : 1. Petitioner, who is a subscriber of a chitty, applied for a loan of a sum of Rs.5,00,000/-from the respondents. He furnished 12.40 ares of property as collateral security for the same. The second respondent issued Ext.P1 order sanctioning the payment of loan. However the 3rd respondent insisted the petitioner that he has to execute a fresh mortgage in respect of the property, as per Ext.P2 letter. Petitioner points out that his mother is having life interest in the property which is furnished as collateral security and therefore a power of attorney executed by the mother in favour of the petitioner was produced before the respondent. But the 3rd respondent insisted that the power of attorney has to be registered. Petitioner also points out that while according sanction for payment of loan in Ext.P1, one of the conditions stipulated is that spouse of the petitioner shall be a co-obligant in all mortgage proceedings. Petitioner challenges condition No.4 in Ext.P1 letter as well as the action of the 3rd respondent in insisting registration of power of attorney. 2. Learned counsel for the petitioner points out that as per Section 17 (1) (g) of the Registration Act, 1908, it is not necessary to register a power of attorney when it is executed in favour of father/mother/wife/husband/son etc., and therefore the 3rd respondent does not have any authority to insist registration which is not required under the statute. 3. I heard the learned counsel for the petitioner as well as Shri K.A.Salil Narayanan, learned Standing Counsel for the respondent. 4. Learned Standing Counsel fairly admitted that the insistence by 3rd respondent that power of attorney should be registered is contrary to the provisions contained in Section 17 (1) (g) of the Registration Act, 1908. 5. Section 17(1)(g) reads as follows: 17.
4. Learned Standing Counsel fairly admitted that the insistence by 3rd respondent that power of attorney should be registered is contrary to the provisions contained in Section 17 (1) (g) of the Registration Act, 1908. 5. Section 17(1)(g) reads as follows: 17. Documents of which registration is compulsory.—(1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No. XVI of 1864, or the Indian Registration Act, 1866 (20 of 1866), or the Indian Registration Act, 1871 (7 of 1871), or the Indian Registration Act, 1877 (3 of 1877), or this Act came or comes into force, namely— (a) instruments of gift of immovable property; xxxx (g) Power of attorney creating any power or right of management, administration, development, transfer or any other transaction relating to immovable property of the value of one hundred rupees and upwards other than those executed in favour of father, mother, wife, husband, son, adopted son, daughter, adopted daughter, brother, sister, son-in-law or daughter-in-law of the executant. 6. As far as the condition No.4 in Ext.P1 also is concerned, it is pointed out that the property which is furnished as collateral security is owned by the petitioner and the mother who is having life interest on it. The wife of petitioner does not have any interest over the said property. No circumstances is available which warrant imposition of a condition that that the spouse of the petitioner should be a co-obligant in the mortgage proceedings as contained in condition No.4 of Ext.P1. Therefore the condition No.4 of Ext.P1 is unlawful. Therefore writ petition is allowed directing the respondents not to insist condition No.4 in Ext.P1 and not to insist for registration of power of attorney which has been executed by the mother in favour of the petitioner which is produced as Ext.P4. The respondents shall take further action accordingly in accordance with law.