Umakant Jha, a resident of the NCR region, owns a significant amount of land in Patna, along with some flats and houses. He has also built a home in Noida, where he has settled with his family. As his business is spread across the Delhi-NCR region, he is rarely able to visit Patna. His dilemma is how to sell his properties in Patna without being physically present there. In this situation, a 'Power of Attorney' serves as the means through which he can complete such transactions without any complications. You may have heard of a 'Power of Attorney' before, but how much do you really know about it? Does a Power of Attorney take precedence over other legal documents, and when is it actually used?

The Supreme Court recently delivered a verdict regarding the 'Power of Attorney' (known in Hindi as *Mukhtarnama*), clarifying that this document does not automatically confer ownership rights upon anyone. It is essentially a legal instrument that allows an individual to appoint another person as their representative, authorizing them to handle property-related matters or other financial transactions. For instance, Umakant Jha—who resides in Noida—could grant a Power of Attorney to an acquaintance in Patna, authorizing them to conduct transactions involving his properties. This document can also empower someone else to oversee the property, collect rent, or manage tasks related to the formal registration of a property.

Which holds more weight: A formal property registration or a Power of Attorney?

In the case of *Suraj Lamp & Industries vs. State of Haryana*, the Supreme Court clarified that a Power of Attorney does not automatically transfer ownership rights of a property. It is merely a document for delegating authority; it is not a valid instrument for selling or transferring property ownership. Consequently, a Power of Attorney carries no weight when compared to a formal property registration. A registered deed is considered the only definitive legal means for transferring property.

A Power of Attorney carries less weight than a Gift Deed or a Will. 

The Supreme Court has ruled that a Power of Attorney merely constitutes a transfer of authority; it does not grant the right to establish ownership over a property or to transfer such ownership. In this regard, the scope of a Power of Attorney is limited when compared to a Gift Deed or a Will. A Gift Deed functions much like a sale deed and is used for the transfer of property between blood relatives. Similarly, a Will—which also serves as a document for the transfer of property—only comes into effect after an individual's death; it does not take effect during the person's lifetime.

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