V. Ravikumar v. S. Kumar
Background
The respondent-plaintiff had sued to have several sale deeds - executed by the appellant/defendant under a general power of attorney (GPA) granted in 2004 - declared null and void, and to restrain interference with his property. The Trial Court rejected the plaint as time-barred, finding the plaintiff had knowledge of the sale deeds by January 2015, well before the September 2018 suit. The High Court reversed, holding that limitation should instead run from September 2015, when the plaintiff formally cancelled the power of attorney.
Decision Breakdown
The Supreme Court held that the High Court erred in treating the date of cancellation of the power of attorney as the starting point for limitation. Since the GPA was validly executed in 2004 and the disputed sale deeds were carried out between 2004 and 2009 while it was still in force, a later cancellation of the power (in 2015) could not retroactively create a fresh cause of action to challenge conveyances that were valid when made. The Court restored the Trial Court's order rejecting the plaint as barred by limitation.
Lesson Learnt
Cancelling a power of attorney does not undo transactions validly carried out while the power was still in effect, and a person cannot use a later cancellation to reset the limitation clock on challenging those earlier transactions.