Can a Power of Attorney Holder file a Civil Suit? Is there any bar by virtue of Manisha Mahendra Gala v. Shalini Bhagwan Avatramani, 2024-6 SCC 130?

Saji Koduvath, Advocate, Kottayam

In Manisha Mahendra Gala v. Shalini Bhagwan Avatramani, 2024-6 SCC 130 (Pankaj Mithal,  Prashant Kumar Mishra, JJ.) held –

  • it is settled in law that Power of Attorney holder can only depose about the facts within his personal knowledge.

It is observed in this case –

  1. The law as understood earlier was that
    • a General Power of Attorney holder can appear, plead and act on behalf of a party he represents; but
    • he cannot become a witness on behalf of the party represented by him as no one can delegate his power to appear in the witness box to another party.
  2. In A.C Narayan v. State of Maharashtra, (2014) 11 SCC 790  upheld the principle of law laid down in Janki Vashdeo Bhojwani (2005-2 SCC 217) and clarified that Power of Attorney holder can depose and verify on oath before the court but he must have witnessed the transaction as an agent and must have due knowledge about it.  

The Supreme Court said in Manisha Mahendra Gala v. Shalini Bhagwan Avatramani, 2024-6 SCC 130 as under:

  • “28. The law as understood earlier was that a General Power of Attorney holder though can appear, plead and act on behalf of a party he represents but he cannot become a witness on behalf of the party represented by him as no one can delegate his power to appear in the witness box to another party. However, subsequently in Janki Vashdeo Bhojwani vs. IndusInd Bank Ltd., (2005) 2 SCC 217, this Court held that the Power of Attorney holder can maintain a plaint on behalf of the person he represents provided he has personal knowledge of the transaction in question. It was opined that the Power of Attorney holder or the legal representative should have knowledge about the transaction in question so as to bring on record the truth in relation to the grievance or the offence. However, to resolve the controversy with regard to the powers of the General Power of Attorney holder to depose on behalf of the person he represents, this Court upon consideration of all previous relevant decisions on the aspect including that of Janki Vashdeo Bhojwani (supra) in A.C Narayan vs. State of Maharashtra, (2014) 11 SCC 790  concluded by upholding the principle of law laid down in Janki Vashdeo Bhojwani (supra) and clarified that Power of Attorney holder can depose and verify on oath before the court but he must have witnessed the transaction as an agent and must have due knowledge about it. The Power of Attorney holder who has no knowledge regarding the transaction cannot be examined as a witness. The functions of the General Power of Attorney holder cannot be delegated to any other person without there being a specific clause permitting such delegation in the Power of Attorney; meaning thereby ordinarily there cannot be any sub-delegation.
  • 29. It is, therefore, settled in law that Power of Attorney holder can only depose about the facts within his personal knowledge and not about those facts which are not within his knowledge or are within the personal knowledge of the person who he represents or about the facts that may have transpired much before he entered the scene. The aforesaid Power of Attorney holder PW-1 had clearly deposed that he is giving evidence on behalf of plaintiff Nos. 2 to 4 i.e. the Gala’s. He was not having any authority to act as the Power of Attorney of the Gala’s at the time his statement was recorded. He was granted Power of Attorney subsequently as submitted and accepted by the parties. Therefore, his evidence is completely meaningless to establish that Gala’s have acquired or perfected any easementary right over the disputed rasta in 1994 when the suit was instituted.”
  • In Janki Vashdeo Bhojwani v. IndusInd Bank Ltd., (2005) 2 SCC 217, it was held that the Power of Attorney holder can maintain a plaintprovided he has personal knowledge of the transaction in question.

It is observed (obvious, clerical-mistake) in Manisha Mahendra Gala v. Shalini Bhagwan Avatramani, 2024-6 SCC 130, as regards maintaining a plaint, as under:

  • “However, subsequently in Janki Vashdeo Bhojwani vs. IndusInd Bank Ltd., (2005) 2 SCC 217, this Court held that the Power of Attorney holder can maintain a plaint on behalf of the person he represents provided he has personal knowledge of the transaction in question.”

But, it is seen that Janki Vashdeo Bhojwani v. IndusInd Bank Ltd., (2005) 2 SCC 217, did not observe anything as to  ‘maintaining a plaint (as observed in Manisha Mahendra Gala v. Shalini Bhagwan Avatramani). Janki Vashdeo Bhojwani v. IndusInd Bank Ltd. referred to “complaint only“. It is said in Janki Vashdeo Bhojwani v. IndusInd Bank Ltd. as under:

  • “Order III, Rules 1 and 2 CPC, empowers the holder of power of attorney to “act” on behalf of the principal. In our view the word “acts” employed in Order III, Rules 1 and 2 CPC, confines only in respect of “acts” done by the power of attorney holder in exercise of power granted by the instrument. The term “acts” would not include deposing in place and instead of the principal. In other words, if the power of attorney holder has rendered some “acts” in pursuance to power of attorney, he may depose for the principal in respect of such acts, but he cannot depose for the principal for the acts done by the principal and not by him. Similarly, he cannot depose for the principal in respect of the matter which only the principal can have a personal knowledge and in respect of which the principal is entitled to be cross-examined.
  • On the question of power of attorney, the High Courts have divergent views. In the case of Shambhu Dutt Shastri Vs. State of Rajasthan, 1986 2WLL 713 it was held that a general power of attorney holder can appear, plead and act on behalf of the party but he cannot become a witness on behalf of the party. He can only appear in his own capacity. No one can delegate the power to appear in witness box on behalf of himself. To appear in a witness box is altogether a different act. A general power of attorney holder cannot be allowed to appear as a witness on behalf of the plaintiff in the capacity of the plaintiff.
  • The aforesaid judgment was quoted with the approval in the case of Ram Prasad Vs. Hari Narain & Ors. AIR 1998 Raj. 185. It was held that the word “acts” used in Rule 2 of Order III of the CPC does not include the act of power of attorney holder to appear as a witness on behalf of a party. Power of attorney holder of a party can appear only as a witness in his personal capacity and whatever knowledge he has about the case he can state on oath but be cannot appear as a witness on behalf of the party in the capacity of that party. If the plaintiff is unable to appear in the court, a commission for recording his evidence may be issued under the relevant provisions of the CPC.
  • In the case of Dr. Pradeep Mohanbay Vs. Minguel Carlos Dias reported in 2000 Vol.102 (1) Bom.L.R.908, the Goa Bench of the Bombay High Court held that a power of attorney can file a complaint under Section 138 but cannot depose on behalf of the complainant. He can only appear as a witness.
  • However, in the case of Humberto Luis & Anr. Vs. Floriano Armando Luis & Anr. reported in 2002 (2) Bom.C.R.754 on which the reliance has been placed by the Tribunal in the present case, the High Court took a dissenting view and held that the provisions contained in Order III Rule 2 of CPC cannot be construed to disentitle the power of attorney holder to depose on behalf of his principal. The High Court further held that the word “act” appearing in order III Rule 2 of CPC takes within its sweep “depose”. We are unable to agree with this view taken by the Bombay High Court in Floriano Armando (supra).
  • We hold that the view taken by the Rajasthan High Court in the case of Shambhu Dutt Shastri (supra) followed and reiterated in the case of Ram Prasad (supra) is the correct view. The view taken in the case of Floriano Armando Luis (supra) cannot be said to have laid down a correct law and is accordingly overruled.”

A.C Narayan v. State of Maharashtra, (2014) 11 SCC 790  

In view of difference of opinion amongst various High Courts as also the decisions of this Court in M.M.T.C.v. Medchl Chemicals & Pharma (P) Ltd., 2002 (1) SCC 234, and in Janki Vashdeo Bhojwani v. Indusind Bank Ltd., 2005 (2) SCC 217, the following question (main) question was referred to the three judge bench:

  • “If the Power of Attorney holder fails to assert explicitly his knowledge in the complaint then can the Power of Attorney holder verify the complaint on oath on such presumption of knowledge?”

In the light of Sec. 142 of the NI Act the three Judge Bench answered the reference in negative. Sec. 142 reads as under:

  • “142. Cognizance of offences. Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) –
  • no court shall take cognizance of any offence punishable under section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque;…”

The Bench answered the question as under:

  • “23) In the light of the discussion, we are of the view that the power of attorney holder may be allowed to file, appear and depose for the purpose of issue of process for the offence punishable under Section 138 of the N.I. Act. An exception to the above is when the power of attorney holder of the complainant does not have a personal knowledge about the transactions then he cannot be examined. However, where the attorney holder of the complainant is in charge of the business of the complainant-payee and the attorney holder alone is personally aware of the transactions, there is no reason why the attorney holder cannot depose as a witness. Nevertheless, an explicit assertion as to the knowledge of the Power of Attorney holder about the transaction in question must be specified in the complaint.”

From the above, it is clear –

  • A civil suit can be filed by the plaintiff through a power of attorney;
  • but, he can furnish evidence on the ‘transaction’ (if so necessitated) if only he has direct knowledge.
  • Power of Attorney holder can maintain a complaint under Sec. 138 NI Act on behalf of the person he represents provided he has personal knowledge of the transaction in question.

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3 Comments

  1. When filing cases for banks, the POA (suppose the Manager) may get transfer and new POA/ manager may come and depose on the basis of the file he seen. Do you say that the previous POA/ manager who transferred or retired has to come again to the box and depose?

    Regards

    Adv Sreenivas Pai Kottayam

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    1. sajikoduvath's avatar sajikoduvath says:

      It is stated in the concluding portion of the article as under:

      • “A civil suit can be filed by the plaintiff through a power of attorney;
      • but, he can furnish evidence on the ‘transaction’ (if so necessitated) if only he has direct knowledge.
      • Power of Attorney holder can maintain a complaint under Sec. 138 NI Act on behalf of the person he represents provided he has personal knowledge of the transaction in question.”

      In short, in civil cases, “the previous POA/ manager who transferred or retired has to come again to the box and depose”.

      Like

      1. Thankyou Sir

        Regards Adv Sreenivas Pai Kottayam 8921318738

        Like

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