The Supreme Court has quashed an FIR against a property vendee, determining that the sale had been duly authorized by a Power of Attorney (PoA). The court ruled that the dispute did not warrant criminal action against the vendee.
SC Quashes FIR Based on PoA Authorised Sale
The Supreme Court has quashed the First Information Report (FIR) lodged against a vendee involved in a property sale, asserting that the sale was duly authorized under a Power of Attorney (PoA). This ruling clarifies the legal standing of transactions executed through a PoA, particularly in property disputes.
The Court identified that the vendee had acted within the scope of the authority granted by the PoA and held that the existing disputes did not constitute a valid cause of action for criminal prosecution. It reiterated the legal principle that unauthorized sales do not automatically implicate bona fide purchasers.
This judgment reinforces the sanctity of transactions conducted under duly executed powers of attorney and emphasizes that the existence of a dispute over the subject property is insufficient to justify criminal proceedings against parties who acted in good faith.
Practitioners in real estate and criminal law should closely examine this decision, as it significantly impacts how disputes over property transactions authorized by PoA are handled in the context of criminal liability.
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