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Sale on the basis of Irrevocable Power of Attorney

PLJ 2001 SC 291 · Lahore High Court (Multan Bench)

This case involved a dispute over land that had been sold using a power of attorney. The petitioner, Abdul Rahim, had given an irrevocable general power of attorney to Mukhtar Ahmad, who then used it to sell the land to other people. Abdul Rahim later filed a lawsuit claiming the power of attorney itself was invalid, and therefore the sale made under it should also be cancelled.

The trial court initially ruled in his favor, but the first appellate court overturned that decision after re-examining the evidence, finding that the power of attorney had genuinely been given in exchange for Rs. 20,000, which Abdul Rahim had admitted receiving. The High Court upheld this reversal, and Abdul Rahim then asked the Supreme Court for permission to appeal further.

The Supreme Court refused leave to appeal. It noted that the sale deeds executed by the attorney were for an amount close to the consideration already paid for the power of attorney, suggesting the transaction was genuine and that Abdul Rahim had effectively sold the land through this arrangement because he needed money. The Court also rejected the argument that a witness's testimony should be disregarded simply because he was related to a party, holding that relationship alone does not discredit a witness if the testimony is otherwise credible and disinterested.

This case matters because it confirms that an irrevocable power of attorney given for real consideration can validly support a subsequent sale, and that courts will not disturb consistent factual findings of lower courts unless there is clear misreading of evidence.

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