Power Of Attorney Holder, Who Was Vendee & Witnessed Execution, Can Give Evidence On Agreement To Sell : Supreme Court

The Supreme Court observed that when multiple plaintiffs are involved in an agreement to sell, a power of attorney holder (who is also a vendee and a plaintiff) may testify on behalf of another plaintiff on matters requiring his personal knowledge.

The bench comprising Justice Vikram Nath and Justice Prashant Kumar Mishra reasoned that since the power of attorney, who is also a plaintiff, witnessed the execution of the agreement to sell and had first-hand knowledge of the execution, therefore he can very well testify about matters requiring personal knowledge of the principal, such as the principal's state of mind or readiness and willingness to perform obligations under a contract.

It is well-established in law that an attorney holder can testify about actions they have personally undertaken on behalf of the principal, but they cannot provide testimony on matters that require the principal's personal knowledge, such as the principal's state of mind or their readiness and willingness to fulfill contractual obligations.

However, distinguishing the aforesaid proposition from the facts of the present case where the plaintiff's power of attorney also happened to be another plaintiff, the judgment authored by Justice Vikram Nath said that since the plaintiff's power of attorney was present at the time of execution, and were personally aware of all the facts, therefore the agreement to sell cannot be disputed based on the power of attorney holder's deposition proving the agreement to sell execution.

“The appellants have further relied upon the judgment in Man Kaur (supra) to substantiate the argument that a power of attorney holder can depose on behalf of the principal in respect of acts and transactions that the attorney has personal knowledge of. In this case, this Court clarified that while an attorney holder can definitely testify regarding the acts they have personally carried out on behalf of the principal, they cannot testify about matters requiring personal knowledge of the principal, such as the principal's state of mind or readiness and willingness to perform obligations under a contract. In the present case, the power of attorney K.D. Maheshwari was himself one of the vendees and all the transactions in the six suits having taken place simultaneously on the same day, same time and at the same place he was well aware personally of all the facts.”, the court observed.

Also From Judgment:  Not Every Plaintiff Must Prove Sale Agreement's Execution If Another Plaintiff Having Firsthand Knowledge Proves Execution : Supreme Court

Case Title: SHYAM KUMAR INANI VERSUS VINOD AGRAWAL & ORS., CIVIL APPEAL NO. 2845/2015

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