General Power of Attorney in Pakistan: Legal Validity & Restrictions
A General Power of Attorney (GPA) is a legal document that grants one person (the agent) the authority to act on behalf of another person (the principal) in legal and financial matters. It is widely used in Pakistan for property transactions, business dealings, and legal representations. However, its validity and restrictions are governed by specific laws to prevent misuse.
Legal Framework Governing GPA in Pakistan
The General Power of Attorney is primarily governed by:
The Power of Attorney Act, 1882 – Defines the legal aspects of power of attorney.
The Registration Act, 1908 – Requires certain POAs to be registered.
The Stamp Act, 1899 – Determines the stamp duty applicable on POAs.
Civil Procedure Code, 1908 (Order III, Rule 2) – Recognizes an agent's authority to appear on behalf of a principal in legal matters.
Legal Validity of General Power of Attorney
A GPA is considered legally valid if it meets the following requirements:
Proper Execution: It must be drafted on stamp paper as per the Stamp Act, 1899.
Principal’s Signature: The principal must sign the document in the presence of witnesses.
Attestation & Notarization: The document should be attested by a Notary Public or an Oath Commissioner.
Registration (if required):
For property-related matters, GPA must be registered with the Sub-Registrar’s Office under the Registration Act, 1908.
For financial or legal representation, notarization is usually sufficient.
Clear Scope & Authority: The document must clearly define the powers granted to the agent.
Revocation Clause: The principal must retain the right to revoke the GPA if needed.
Restrictions on General Power of Attorney
While a GPA offers broad authority, there are key restrictions:
1. Non-Transferability of Property
A GPA holder cannot sell or transfer immovable property unless specifically authorized.
The Supreme Court of Pakistan has ruled that property transactions through GPA require additional legal formalities.
2. No Authority Beyond Specified Powers
The agent cannot act beyond the authority granted in the document.
If the GPA does not include financial matters, the agent cannot open bank accounts or withdraw money.
3. Irrevocability in Certain Cases
If a GPA is coupled with an interest, such as in business contracts, it cannot be revoked unilaterally.
Otherwise, the principal can revoke the GPA anytime through a revocation deed.
4. Expiry & Automatic Revocation
A GPA automatically becomes invalid if:
The principal dies.
The principal becomes mentally incapacitated.
A specific time period mentioned in the GPA expires.
5. GPA Executed Abroad
If a GPA is executed abroad, it must be attested by the Pakistan Embassy and then registered in Pakistan.
It must comply with local and Pakistani laws for recognition.
Conclusion
A General Power of Attorney in Pakistan is a useful legal tool but comes with strict legal formalities and restrictions. Proper execution, attestation, and registration are crucial for its validity. Misuse of a GPA can lead to serious legal consequences, so it is advisable to draft it carefully and consult a lawyer before execution.
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