Special Power of attorney

In India, the concept of a Special Power of attorney (SPA) is also governed by the Indian Contract Act, 1872, and the Powers of Attorney Act, 1882. The SPA is a legal document that grants specific powers and authority to an agent or attorney-in-fact to act on behalf of the principal in specific matters. Let’s delve into the details of the Special Power of Attorney.

A Special Power of Attorney contains provisions that specify and limit the powers granted to the agent. Unlike a General Power of Attorney, which grants broad powers, an SPA is more focused and limited in scope. The principal may authorize the agent to carry out specific actions or make decisions on their behalf.

Read More: General Power of attorney

Here are some key aspects of a Special Power of Attorney:

Specific Powers: An SPA outlines the specific powers or actions that the principal grants to the agent. These powers can include selling or buying a property, executing documents, representing the principal in legal proceedings, managing specific bank accounts, or making financial decisions within a defined scope.

Revocability: Similar to a General Power of Attorney, an SPA can be revocable or irrevocable. A revocable SPA allows the principal to terminate or revoke the powers granted to the agent at any time, as long as they are of sound mind. An irrevocable SPA requires the consent of the agent or a court order to be revoked.

Registration: While the law does not mandate the registration of an SPA, registration can be done to enhance its authenticity and evidentiary value. Registering an SPA follows the same process as mentioned earlier for a GPA.

Consideration: The execution of an SPA generally does not require any consideration or payment between the principal and the agent. However, if the document includes a transfer of property or other valuable rights, it may require registration and payment of stamp duty as per the applicable state laws.

Termination: An SPA can be terminated in several ways, including revocation by the principal, death of either the principal or the agent, incapacity of the principal, completion of the purpose for which the SPA was executed, or expiration of a specified period mentioned in the SPA.

As with a General Power of Attorney, it is crucial for the principal to carefully select a reliable and trustworthy agent when executing an SPA. The agent must act in the best interest of the principal and within the limits of the powers specified in the document.

It is advisable to seek guidance from a qualified legal professional to understand the specific requirements and implications of a Special Power of Attorney, as the interpretation and execution of powers of attorney may vary across different states in India. The laws and regulations governing powers of attorney may have specific nuances that can impact their validity and enforceability.