Limitation Period Begins from Knowledge of Sale, Not Revocation of POA: SC

The Supreme Court of India, in the case of V. Ravikumar v. S. Kumar (Special Leave Petition (Civil) No. 9472 of 2023), dated March 3, 2025, addressed the issue of limitation in challenging sale deeds executed under a power of attorney. The primary question was whether the limitation period commences from the date of cancellation of the power of attorney or from the date of knowledge of the sale deeds.

The dispute arose when the plaintiff, V. Ravikumar, sought to declare certain sale deeds executed under a power of attorney granted to S. Kumar, the defendant, as null and void. The power of attorney had been executed on October 15, 2004, and the impugned sale deeds were registered between 2004 and 2009.

The Supreme Court analysed the case under Order VII Rule 11 of the Code of Civil Procedure, 1908, which allows for the rejection of a plaint if it is barred by limitation. The Court reaffirmed the principle that once a power of attorney is validly executed and acted upon, its subsequent cancellation does not retrospectively nullify prior transactions executed under its authority. The Court observed that the plaintiff never disputed the execution of the power of attorney in 2004 and that the defendant had lawfully executed sale deeds based on the authority conferred. The cancellation of the power of attorney in 2015 had no bearing on transactions executed prior to such cancellation, and a plaintiff cannot claim a fresh cause of action solely on the basis of the power of attorney’s cancellation.

The Court reaffirmed that under the Limitation Act, 1963, the period for challenging a sale deed begins when the plaintiff becomes aware of the transaction, not when the PoA is revoked. Further, the Court noted that there were no allegations made that the power of attorney was executed fraudulently or under coercion. If such allegations had been made and proven, they could have influenced the determination of the limitation period. Therefore, the Supreme Court held that once a power of attorney is lawfully executed and acted upon, subsequent cancellation does not invalidate prior conveyances. The Supreme Court allowed the appeal, set aside the High Court’s order, and upheld the Trial Court’s decision to reject the plaint.

This judgement reinforces the principle that property transactions carried out under a valid power of attorney remain legally binding, and any challenge to such transactions must be brought within the prescribed limitation period from the date of knowledge.