HARBANS SINGH Vs. SHANTI DEVI

JUDGEMENT

(1.) The only question argued by the learned counsel for the appellant in support of the appeal is whether both the general and the special powers of attorney or either of them which had been executed by the appellant in favour of Shri H. K. Gulati, husband of the respondent, on 11th January 1964 were or was cancelled validly by the appellant by his lawyer's letter dated 8th February 1965. The answer to this question in its turn depends on the construction of section 202 of the Contract Act and particularly on the meaning of the word "interest" used therein.

(2.) The appellant Harbans Singh was an allottee of shop No. 90, Bhagat Singh Market by the Government of India, Ministry of Rehabilitation, for a consideration of Rs. 5890-60. As he was not in a position to pay the aforesaid dues to the Government, he agreed to sell his right, title and interest in the said shop to the respondent for Rs. 18,000.00 by the agreement dated 11-1-1964 Exhibit P-3. Ra. 3200.00 were paid in cash as earnest money. The seller was to pay four instalments of the Government dues while the rest of the Government dues were to be paid by the buyer. The balance of the consideration was to be paid by the buyer to the seller at the time of the registration of the sale deed. The important part of the agreement contained in para 3 stated that "in order to facilitate the transaction" the seller has appointed Shri Gulati "a nominee and husband of" the buyer as his general as well as special attorney who will perform all acts, deeds and things which are stated to be done by the seller "in connection with the management and payment ot the said dues of the Government in respect of the said property". And the seller shall not be responsible for any negligence of the said attorney "who is the nominee of the second party (buyer)". On the same day, the general and the special powers of attorney mentioned above were executed by the seller in favour of Shri Gulati. The special power of attorney Exhibit P-7 enabled the attorney to make payment of the Government dues. The general power of attorney Exhibit P-8 authorised the attorney to sell the appellant's shop to any purchaser and to get the sale deed executed and registered and to receive and acknowledge the receipt of the consideration and to give a receipt for the same and to get the property mutated in favour of the purchaser and to do all other things in connection with the management and sale of the said shop as fully as could be done by the seller himself. The general power of attorney stated that it was to be irrevocable while the special power of attorney did not have any such stipulation.

(3.) Due to differences between the parties, the appellant's lawyer sent to the respondent a notice Exhibit D-l on 8-2-1965 cancelling the agreement to sell dated 11-1-1964 and all other documents executed by the appellant in favour of the respondent and in favour of the husband of the respondent. The appellant's lawyer also wrote on 8-2-1965 Exhibit D-2 to Shri Gulati atating as follows :--