Summary: To cancel or revoke any Power of Attorney, there are certain specific steps which need to be followed which include drafting a deed for Revocation of Power of Attorney. If the POA was notarized or registered, you will need to do the same for the Cancellation document as well.
The Power of Attorney (POA) is basically a means via which a person has the ability to authorise another individual to undertake decisions on his behalf regarding certain important aspects. The Power of Attorney Act 1882, under definition 1A states that In this Act, “Power of Attorney” (POA) includes any instrument empowering specified person, hereinafter referred to as the Attorney to act for and in the name of the person executing it, hereinafter referred to as the Executor/Principal. The Power of attorney has the powers enunciated and the Executor/Principal ratifies the acts of the Attorney. POA is generally revocable however there are irrevocable POAs as well. Mostly, however, the use of a power of attorney is limited to situations wherein complicated legal situations can arise. Thus, even for cancelling or revoking a power of attorney, certain procedures must be followed according to the law. The Power of Attorney (PoA) is an instrument with which one individual authorises another to partake decisions on his behalf regarding important matters. Thus, such an instrument results in the creation of a relationship of the nature of a principal and an agent and therefore any individual who has been provided with the power of attorney, is legally bound for any decisions undertaken by the agent regarding the matter for which the PoA has been given. A PoA has also been defined under the Power of Attorney Act, 1882 which states that “any instrument empowering a specified person to act for and in the name of the person executing it”. Therefore, in this case, an agent is referred to as the attorney-in-fact.
In order to cancel or revoke any Power of Attorney, there are certain specific steps which need to be followed in a particular manner in order to legally revoke such a Power of Attorney. The steps for such revocation of the Power of Attorney have been enumerated below:
As far as the revocation or cancellation of the Power of Attorney is concerned, there may be several instances via which this principal-agent relationship may be severed between the attorney and the authoriser. Even though there is no definitive law which governs the same, the procedure for such revocation has been drawn from the Indian Contract Act, 1872. Moreover, several courts in India have also provided their interpretation of the general principles given under the law and thereby applied the same to a Power of Attorney. The number of ways through which such revocation can take place have been enumerated below:
There exists many possibilities wherein an individual who has authorised another person for acting as his attorney brings the relationship to an end. These situations can be brought about through the express revocation of his authority, when the business of such an agency has come to an end, in case either the principal or the agent has been deemed to be insolvent or of unsound mind completely.
Under the Indian Contract Act, 1872, section 202 is applicable to such situations wherein the agent develops a personal interest in his agency in which case, such a relationship cannot be terminated without the due consent of such an agent.
Even though, at the time of the grant of a PoA, it is completely irrevocable in nature, however, in case of any gross mismanagement on behalf of the agent or in case of any breach of duty by such an agent or if he acts above and beyond his scope of power with regards to the PoA, the same can then be revoked
Thus, we can categorise Power of Attorney (PoA) into two different kinds of documents, as general and specific. Thus it can be established that there are many situations wherein a PoA once registered, can also be revoked. As explained above, one of these situations is mostly the end of the relationship between the authoriser and the attorney. However, the process of cancellation of any PoA, revoked for whatever reason is the same as provided above.