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AMICUS AI
Citation Codes
Neutral Citations
1970 INSC 64
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 9 of the Punjab Redemption of Mortgages Act, 1913
  • Section 85 of the Indian Evidence Act
  • Section 42 of the Specific Relief Act
  • Section 33 of the Indian Registration Act
  • Specific Relief Act (year not specified)
  • 1983 Income Tax Act (Section 5, Subsection 2)
  • Sections 32 and 33 of the Indian Registration Act
  • That an act done, for another, by a person though without any precedent authority whatever, becomes the act of the principal, if subsequently ratified by him, is the known and well established rule of law.
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned in the text)
  • the redemption Act
  • Section 12 of the Punjab Redemption of Mortgages Act, 1913
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Cites
Cited by
Citation Codes
Neutral Citations
1970 INSC 64
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 9 of the Punjab Redemption of Mortgages Act, 1913
  • Section 85 of the Indian Evidence Act
  • Section 42 of the Specific Relief Act
  • Section 33 of the Indian Registration Act
  • Specific Relief Act (year not specified)
  • 1983 Income Tax Act (Section 5, Subsection 2)
  • Sections 32 and 33 of the Indian Registration Act
  • That an act done, for another, by a person though without any precedent authority whatever, becomes the act of the principal, if subsequently ratified by him, is the known and well established rule of law.
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned in the text)
  • the redemption Act
  • Section 12 of the Punjab Redemption of Mortgages Act, 1913
Smart Summary

Factual and Procedural Background

In 1923 Bhag Singh mortgaged certain lands to Ran Jang Singh. On 6 September 1961 Bhag Singh’s son, Vernon Seth Chotia, executed a power of attorney in California (U.S.A.) appointing Sardar Kartar Singh Chawla, an advocate of the Supreme Court of India, to sell the property and present any sale deed for registration. Acting on this instrument, Chawla executed a sale deed on 30 May 1963 in favour of the present respondents and presented it for registration, which was completed.

The vendees then sought to redeem the mortgage and, after depositing the mortgage amount with the Collector under Section 9 of the Punjab Redemption of Mortgages Act, 1913, obtained an order for redemption. The appellants – sons of the original mortgagee – instituted a suit on 7 August 1963 under Section 12 of the Act praying for a declaration that the defendants were not owners of the land and had no right to redeem it.

While the suit was pending, a second power of attorney dated 23 March 1964 was executed by Vernon Seth Chotia before a Notary Public in Alameda County, California, expressly ratifying the earlier authority given to Chawla. Relying on this second instrument, the trial court dismissed the suit. The District Court in appeal and a learned Single Judge of the Punjab High Court in second appeal affirmed the dismissal on 14 December 1966. The present appeal was brought before the Supreme Court by special leave.

Legal Issues Presented

  1. Whether the first power of attorney (1961) was validly “executed before and authenticated by” a competent authority as required by Section 33 of the Indian Registration Act, 1908 and Section 85 of the Indian Evidence Act, 1872.
  2. Whether the second power of attorney (1964) constituted a valid and effective ratification that could relate back and cure defects in the earlier execution and registration of the sale deed.
  3. Consequently, whether the respondents derived valid title and were entitled to redeem the mortgage under the Punjab Redemption of Mortgages Act, 1913.

Arguments of the Parties

Appellants’ Arguments

  • The 1961 power of attorney lacked proper authentication; mere witnessing by “Daniel E. Cooper” did not satisfy Section 85 of the Evidence Act or Section 33 of the Registration Act.
  • The endorsement on the 1964 power of attorney did not on its face show that the Notary Public had verified the identity of Vernon Seth Chotia, rendering it invalid.
  • Because the authority was defective, presentation of the sale deed for registration by Chawla was void ab initio; subsequent ratification could not confer jurisdiction on the registering officer.
  • Reliance was placed on Wali Mohammad Chaudhari v. Jamal Uddin Chaudhari (AIR 1950 All 524) for the meaning of “authentication”, and on decisions such as Bottie Karan v. Lachmi Prasad Sinha and a Privy Council ruling reported as 58 I.A. 58 to submit that a registration effected on an invalid power of attorney is a nullity.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Wali Mohammad Chaudhari v. Jamal Uddin Chaudhari, AIR 1950 All 524 “Authentication” requires the authenticating authority to satisfy itself of the executant’s identity. Cited by appellants; Court accepted the definition but found the requirement satisfied by the Notary’s endorsement and the statutory presumption under Section 85 Evidence Act.
Bottie Karan v. Lachmi Prasad Sinha (citation as stated in opinion) An instrument presented by an unauthorised agent is voidly registered. Cited by appellants; Court distinguished the present case because subsequent ratification cured the defect.
Privy Council decision, 58 I.A. 58 Presentation by a person not duly authorised renders registration void. Held inapplicable because that case did not consider subsequent ratification; Supreme Court applied the doctrine of relation back.
Keighley, Maxsted & Co. v. Durant, 1901 A.C. 241 Ratification relates back to the date of the original act when a disclosed principal subsequently adopts it. Quoted with approval; formed the basis for holding that the 1964 power of attorney validated the 1963 sale and registration.
Wilson v. Tumman, 6 M.&G. 236 (1843) Statement of the common-law doctrine that a ratified act binds the principal as if originally authorised. Cited through Lord Macnaghten’s quotation; reinforced the principle of relation back.

Court's Reasoning and Analysis

The Court recognised that a document requiring registration must be presented either by the executant or a duly authorised attorney whose power is authenticated in terms of Section 33 of the Registration Act. The first power of attorney failed this test because it bore only a witness’s signature without any indication of notarial authentication.

Turning to the second power of attorney, the Court observed that it was executed before a Notary Public in California, accompanied by a clerk’s certificate of compliance with California law. By virtue of Section 85 of the Evidence Act, a presumption of due execution and authentication operated. The Court rejected the contention that the Notary’s failure explicitly to recite verification of identity invalidated the instrument, invoking the presumption of regularity of official acts.

The pivotal question became whether this later power could validate the earlier execution and registration of the sale deed. Citing Keighley, Maxsted & Co. v. Durant and the maxim omnis ratihabitio retrotrahitur et mandato priori aequiparatur, the Court held that ratification relates back to the date of the original act where the principal is disclosed. Because the 1964 instrument expressly ratified Chawla’s prior acts, it retrospectively supplied the requisite authority both for execution and for presentation for registration.

The Privy Council decision (58 I.A. 58) relied upon by the appellants was distinguished as a case devoid of subsequent ratification. Consequently, the registration was upheld as valid. The Court also noted procedural defects in the plaint: the appellants sought only a declaratory relief without praying for annulment of the Collector’s order or an injunction, attracting the bar of Section 42 of the Specific Relief Act. Additionally, Vernon Seth Chotia, though at least a proper party, had not been impleaded.

The Court regarded the suit as lacking merit, characterising it as an attempt by mortgagees to delay redemption after nearly five decades.

Holding and Implications

Appeal Dismissed with Costs.

The Supreme Court affirmed the validity of the sale deed and its registration, thereby confirming the respondents’ title and their right to redeem the mortgage. The decision emphasises that a duly authenticated subsequent power of attorney can ratify and relate back to validate an earlier act of execution and registration, clarifying the interplay of Sections 33 and 85 with the common-law doctrine of ratification. No new precedent was set beyond reaffirming established principles; the immediate consequence is that the appellants cannot resist redemption and must bear the costs of the litigation.

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    Jugraj Singh And Another v. Jaswant Singh And Others

    M. Hidayatullah, C.J— This is an appeal against the judgment of a learned Single Judge of the High Court of Punjab, dated December 14, 1966, confirming the dismissal of a suit filed by the appellants. The facts of the case are as follows:

    One Bhag Singh mortgaged certain lands to Ran Jang Singh in the year 1923. On September 6, 1961 one Vernon Seth Chotia, son of Bhag Singh executed a power of attorney in California, U.S.A authorising Sardar Kartar Singh Chawla, an advocate of this Court, to sell the property and to execute the sale deed and present it for registration. This power of attorney was witnessed by one Daniel E. Cooper. On the strength of this document, Sardar Kartar Singh Chawla executed the sale deed on May 30, 1963 in favour of the respondents in this appeal. He presented it for registration and the document was registered. The vendees thereupon sought to redeem the mortgage and applied under Section 9 of the Punjab Redemption of Mortgages Act, 1913. They deposited the entire amount due under the mortgage in the Collector's court and we understand that the amount is still lying there, because of the later proceedings from which this appeal arises. The Collector ordered the redemption of the mortgage. The appellants who are the sons of the original mortgagee thereupon filed a suit under Section 12 of the Act on August 7, 1963. It is necessary to refer to their petition of plaint, not with a view to finding out what they stated there, but to see what reliefs they claimed in the suit. In para 10 of the petition of plaint, the appellants as plaintiffs stated:

    “The plaintiffs pray that a decree for declaration to the effect that the defendants are neither the owners of the abovementioned land nor they have any right to get the aforesaid land redeemed as per the orders of the S.D.O Mukatsor exercising the powers of Collector, dated 6th August, 1963 which is illegal and against law and the plaintiffs are not bound by it and neither the defendants are entitled to take possession of the aforesaid land in accordance with that order, be passed in favour of the plaintiffs against the defendants with costs.”

    2. While this suit was still pending and because of the challenge to the power of attorney on the ground that it had not been properly authenticated under the law, a fresh power of attorney was executed by Vernon Seth Chotia on March 23, 1964 in favour of Sardar Kartar Singh Chawla. The second power of attorney was subscribed and sworn to before the Notary Public in and for the County of Alameda, State of California. The Clerk of the Court as required by the laws of California appended a certificate that the Notary Public had duly given the certificate in acknowledgement of the execution of the power of attorney by Vernon Seth Chotia. The endorsement of the Notary Public reads:

    “Subscribed and sworn to before me this 23rd day of March 1964. Setly, J. Botelko
    Notary Public in and for the County of Alameda, State of California.”

    3. This second power of attorney was produced in the suit and the Court of first instance ordered the dismissal of the suit, because it was of opinion that the transfer in favour of the redeeming mortgagors by Vernon Chotia was thereafter flawless. Appeal in the District Court and a second appeal filed in the High Court failed. This appeal has been brought by special leave.

    4. Mr Hardev Singh in arguing the appeal referred to the provisions of Section 85 of the Indian Evidence Act which provides that a court shall presume that every document purporting to be a power of attorney and to have been executed before and authenticated by a Notary Public was duly executed and authenticated. He contended that authentication of the power of attorney had to be in a particular form, and that it was not sufficient that a witness should have signed the document, be he a Notary Public or any other. It ought to have been signed by the persons named in Section 85 and should have been authenticated properly. He admitted that there was no prescribed form of authentication, but he relied upon a ruling of the Allahabad High Court reported in Wali Mohammad Chaudhari v. Jamal Uddin Chaudhari AIR 1950 All 524 where it is stated that authentication means that the person who authenticates must satisfy himself about the identity of the person executing or making the document. He argued that the authentication should have shown on its face that the Notary Public had satisfied himself that Vernon Chotia was the real person who had signed the power of attorney before him. He contended, therefore, that the first power of attorney was invalid because it was not authenticated before any of the persons named in Section 85 and the second power of attorney was invalid, because it did not show on its face that the Notary Public had satisfied himself that it was Vernon Chotia who executed the document. He also contended that, in any event, the execution of the second power of attorney was ineffective after the expiry of four months during which registration had to be obtained and further that the act of Mr Chawla in presenting the document for registration under the invalid first power of attorney, could not be cured by the execution of a second power of attorney.

    5. Mr Hardev Singh referred us to the provisions of Sections 32 and 33 of the Indian Registration Act. Under Section 32, it is provided that a document to be registered, whether the registration is compulsory or optional, must be by the presentation at the proper registration office either by some person executing or claiming under the same or by the agent of such person, representative or assign, duly authorised by power of attorney executed and authenticated in the manner therein mentioned. His contention was that for a proper registration, due presentation was a condition precedent and that presentation could only be either by the executant, that is the Principal who conveyed under the deed or a duly constituted representative under a power of attorney properly executed. He referred then to Section 33 which says that if the principal at the time of execution does not reside in India the power of attorney will be recognised only if it is executed before and authenticated by a Notary Public. In other words, his contention was that power of attorney for purpose of presentation of a document for registration as also for its execution must be a properly authenticated document and in the case of a person residing abroad, it must be a document executed by the Principal before the Notary Public and attested and authenticated by the Notary Public after due proof of the identity of the person making the document. He relied further upon the ruling in Bottie Karan v. Lachmi Prasad Sinha and contended that if a power of attorney under which a document was presented and got registered, were found to be defective, then the registration would be of no consequence, because the registering officer would lack jurisdiction to register the document.

    6. These are the stages by which Mr Hardev Singh contended that registration in this case was ineffective, that the vendees derived no title and therefore they had no title to claim redemption either under the Punjab Redemption of Mortgages Act or otherwise. These contentions were also raised in the High Court and the two courts below, but were concurrently rejected.

    7. It is plain that presentation for registration could be, either by the Principal or by a duly constituted attorney. It is equally plain that a proper power of attorney duly authenticated as required by law had to be made before power could be conferred on another either to execute the document or to present it for registration. That indeed is the law.

    8. The short question in this case is whether Mr Chawla possessed such a power of attorney for executing the document and for presentation of it for registration. Now, if we were to take into account the first power of attorney which was executed in his favour on May 30, 1963, we would be forced to say that it did not comply with the requirements of the law and was ineffective to clothe Mr Chawla with the authority to execute the sale deed or to present it for registration. That power of attorney was not authenticated as required by Section 33 of the Indian Registration Act which in the case of an Indian residing abroad, requires that the document should be authenticated by a Notary Public. The document only bore the signature of a witness without anything to show that he was a Notary Public. In any event there was no authentication by the Notary Public (if he was one) in the manner which the law would consider adequate. The second power of attorney however does show that it was executed before a proper Notary Public who complied with the laws of California and authenticated the document as required by that law. We are satisfied that that power of attorney is also duly authenticated in accordance with our laws. The only complaint is that the Notary Public did not say in his endorsement that Mr Chawla had been identified to his satisfaction. But that flows from the fact that he endorsed on the document that it had been subscribed and sworn before him. There is a presumption of regularity of official acts and we are satisfied that he must have satisfied himself in the discharge of his duties that the person who was executing it was the proper person. This makes the second power of attorney valid and effective both under Section 85 of the Indian Evidence Act and Section 33 of the Indian Registration Act.

    9. The only question is whether the second power of attorney was effective to render valid the transaction of sale and the registration of the document both earlier than the power of attorney. In our judgment, it would be so. Mr Hardev Singh does not read into this matter the fact of ratification by Vernon Seth Chotia of this earlier power of attorney. The second power of attorney states in express terms that the first power of attorney was defective and was being ratified. Vernon Seth Chotia also stated in the second power of attorney that the act of Mr Chawla would be his act which included not only the making of the document but also the presentation of that document. Now the law is quite clear that ratification relates back to the original act provided there is a disclosed principal and this has been stated nowhere better than by Lord MacNaughton in Keighley, Maxsted and CO. v. Durant 1901 AC 241 at 246-47 quoting Tindal, C.J in Wilson v. Tumman 1843-6 M and C at p. 242:

    “That an act done, for another, by a person though without any precedent authority whatever, becomes the act of the principal, if subsequently ratified by him, is the known and well established rule of law.. In that case the principal is bound by the act, whether it be for his detriment or his advantage, and whether it be founded on a tort or on a contract, to the same effect as by, and with all the consequences which follow from, the same act done by this previous authority. And so by a wholesome and convenient fiction, a person ratifying the act of another, who, without authority, has made a contract openly and avowedly on his behalf, is deemed to be, though in fact he was not, party to the contract.”

    10. Relation back of an act of ratification was expressly accepted in this case. Other cases have been summarised in the Manual of the Law and Practice of Powers of Attorney issued by the Council of the Chartered Institute of Secretaries. This follows from the maxim of law “Omnis ratiliabitio relrotrahitur et mandate priori acquiparatur” — that is to say, ratification is thrown back to the date of the act done, and the agent is put in the same position as if he had authority to do the act at the time the act was done by him. The learned authors quote the case of the House of Lords which we have above cited and add to it certain other cases with which we do not consider necessary to encumber this judgment.

    11. It therefore follows that the second power of attorney was a valid document and it authorised Mr Chawla to execute the document as well as to present it for registration. This being a document ratifying a former inconclusive act related back to the time when the first document was made and cured the illegality in the presentation for registration which has taken place.

    12. The case of the Privy Council on which great reliance was placed, namely, 58 IA 58 (cit. supra) no doubt states that presentation by a person who is not properly authorised by a power of attorney is ineffective and the registration void, but there the Judicial Committee was not considering the case of a subsequent ratification. They were only concerned with an invalid document and nothing more. If there had been ratification, the other principle to which we have adverted here would have been taken note of and the decision would probably have been different.

    13. In these circumstances, we are satisfied that there was proper execution of the document and registration. It is hardly necessary, in view of our decision, to say anything more about this case. We are also satisfied that the appellants were not entitled to a declaration. We have reproduced the para in which the reliefs were asked in the plaint. It will be noticed that they neither asked for the cancellation of the order of the Collector nor for any injunction, two of the reliefs which they were entitled to ask in the case in addition to the declaration. Such a suit would be hit by Section 42 of the Specific Relief Act and we would be quite in a position to deny them the declaration without these specific reliefs. Indeed they had only to ask for the setting aside of the order.

    14. Further, this is obviously an unmeritorious suit on the part of the mortgagees. They are after all mortgagees and redemption has been offered to them by a person who is the son of the original mortgagor and who has resorted to the quick remedy of the redemption Act, for getting the mortgage redeemed. This mortgage took place as far back as 1923 and we are now in the year 1970. It is obvious that over the years this property must have appreciated considerably in value. The intention of the mortgagees is to retain the property as long as they can by raising technical objections in the way of the mortgagors seeking to redeem it. Further again the appellants as plaintiffs in the case joined the transferees from Vernon Seth Chotia but made no attempt to join Vernon Seth Chotia, the son of the original mortgagor. The suit could be only properly framed with all the parties before the Court. In our opinion, even if Vernon Seth Chotia was not a necessary party, he was at least a proper party. If he had been brought before the Court, we would have known from him whether he had given the authority to execute the document and he could have adopted the act of Sardar Chawla by ratifying it again. The suit was not properly framed. For all these reasons, the appeal has no merits and it fails and will be dismissed with costs.

    15. We are surprised to note that the learned Judge in the High Court did not award costs. Normally costs should follow the event and it is not the Rule that costs should be left to be borne to the parties. Here a case was decided against one of the parties in a contentious matter, and costs should have been awarded.

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    Jugraj Singh And Another v. Jaswant Singh And Others
    (Mar 16, 1970)