The difference between SPA vs. GPA is crucial for individuals dealing with property transactions, business operations, and legal authorizations. Special Power of Attorney (SPA) and General Power of Attorney (GPA) are legal instruments that grant authority to an individual (agent) to act on behalf of another (principal). However, these two types of power of attorney differ in scope, duration, legal implications, and revocability.

Understanding these distinctions is essential for individuals seeking legal representation, businesses delegating authority, and property transactions involving high court lawyers in Chandigarh or lawyers in Chandigarh. This article explains SPA vs. GPA in-depth, covering legal provisions, relevant Acts, sections, and applications to help clients and law students comprehend their legal significance.

What is Power of Attorney (POA)?

A Power of Attorney (POA) is a legal document that allows one person (principal) to delegate specific rights or powers to another person (agent) to act on their behalf. It is commonly used in property dealings, legal matters, banking transactions, and business operations.

Legal Provisions Governing Power of Attorney in India

The Power of Attorney Act, 1882 governs POA execution and revocation in India. The Indian Contract Act, 1872, also applies to determine the rights and obligations of the principal and agent.

  • Section 1A, Power of Attorney Act, 1882 – Defines Power of Attorney as an instrument empowering a specified person to act on behalf of another.
  • Section 2, Power of Attorney Act, 1882 – Governs registration and execution of POA.
  • Section 182, Indian Contract Act, 1872 – Defines the relationship of Principal and Agent.

Now, let’s analyze the difference between SPA vs. GPA and understand their distinct legal implications.

What is Special Power of Attorney (SPA)?

A Special Power of Attorney (SPA) is a limited authorization document that grants an agent the power to act only in specific matters mentioned in the document.

Key Features of SPA

  • Limited Authority: The agent is authorized to perform only the acts specifically mentioned in the SPA.
  • Single Transaction: SPA is used for a particular task or transaction, such as selling a property, representing in court, or signing contracts.
  • Expires After Completion: Once the purpose of SPA is fulfilled, it automatically terminates.
  • Common Usage: SPA is widely used in real estate, litigation, and financial dealings where temporary authority is required.

Legal Provisions Governing SPA

  • Section 32, Indian Contract Act, 1872 – An SPA is considered valid only for specific contracts or transactions.
  • Section 17, Indian Registration Act, 1908 – If the SPA relates to property transactions, it must be registered.
  • Section 202, Indian Contract Act, 1872 – If SPA is given for consideration (e.g., business dealings), it cannot be revoked unilaterally.

Example of SPA Usage

A property owner living abroad grants an SPA to a trusted person to sell a property in Chandigarh. The agent cannot perform any other task except for the one mentioned in the SPA.

What is General Power of Attorney (GPA)?

A General Power of Attorney (GPA) is a broader legal document that grants an agent wide-ranging powers to act on behalf of the principal in multiple matters.

Key Features of GPA

  • Extensive Authority: The agent can make various decisions and transactions on behalf of the principal.
  • Multiple Transactions: GPA is used for ongoing business, financial, and property-related matters.
  • Long-Term Validity: GPA remains valid until revoked by the principal or until the principal’s death.
  • Common Usage: Used in business, legal, and financial matters where continuous representation is required.

Legal Provisions Governing GPA

  • Section 201, Indian Contract Act, 1872 – A GPA can be revoked unless it is given for consideration.
  • Section 85, Indian Evidence Act, 1872 – A properly executed GPA is presumed to be valid evidence in court.
  • Section 17, Indian Registration Act, 1908 – If a GPA involves property matters, it must be registered.

Example of GPA Usage

A business owner gives a GPA to a manager to handle contracts, banking, and legal affairs on their behalf. The agent can act in multiple areas without requiring fresh authorization each time.

Difference Between SPA vs. GPA

Feature Special Power of Attorney (SPA) General Power of Attorney (GPA)
Scope Limited to specific tasks Broad authority over multiple matters
Purpose One-time transaction (e.g., selling property) Multiple transactions (e.g., business operations)
Validity Terminates after completion of the task Remains valid until revoked
Registration Mandatory for property-related transactions Mandatory for property transactions
Revocability Revoked once the purpose is served Can be revoked anytime by the principal
Legal Implications Agent has no power beyond what is mentioned Agent has the power to act broadly

Legal Importance of SPA and GPA in Property Transactions

The use of SPA and GPA in real estate is common, but the Supreme Court of India has ruled against GPA-based property sales to prevent fraud.

  • Suraj Lamp & Industries Case (2011) – The Supreme Court ruled that property transactions via GPA are not legally valid and that sale deeds must be executed.
  • Section 54, Transfer of Property Act, 1882 – Requires sale deeds to be properly registered.

Thus, while SPA can be used for executing a property transaction, a GPA does not substitute a sale deed.

Which One Should You Choose – SPA or GPA?

The choice between SPA vs. GPA depends on the specific needs of the principal.

  • If you need a one-time authorization (e.g., selling a property), choose SPA.
  • If you need an agent to handle continuous legal, financial, or business affairs, choose GPA.

Before executing SPA or GPA, consulting high court advocates in Chandigarh or advocates in Chandigarh ensures legal compliance and protection.

Understanding the difference between SPA vs. GPA is essential for individuals, businesses, and legal professionals dealing with property transactions, legal representation, and financial affairs. While SPA grants limited authority for a specific task, GPA provides broader control over multiple areas.

Choosing the right power of attorney ensures legal clarity, protection from fraud, and compliance with Indian laws. Consulting high court advocates in Chandigarh or lawyers in Chandigarh can help navigate the legal formalities of executing a valid power of attorney.

FAQs on Difference Between SPA vs. GPA: 

1. Can a GPA holder sell property in India?

No, a General Power of Attorney (GPA) holder cannot sell property in India. According to the Supreme Court’s ruling in Suraj Lamp & Industries Pvt. Ltd. vs. State of Haryana (2011), property transactions through GPA are not legally valid and cannot replace a registered sale deed.

Why is a Sale Deed Mandatory?

  • Section 54 of the Transfer of Property Act, 1882 mandates that a valid sale of immovable property must be executed through a registered sale deed.
  • Section 17 of the Indian Registration Act, 1908 states that any transaction related to immovable property must be registered for legal validity.
  • GPA transactions have been widely misused in fraudulent property dealings, leading to the Supreme Court’s decision to prohibit the sale of property solely through a GPA.

What Can a GPA Holder Do?

  • A GPA holder can manage, lease, mortgage, or rent out the property but cannot legally transfer ownership.
  • If property sale is intended, the principal must execute a registered sale deed in favor of the buyer.

If you are involved in a GPA-based transaction, it is advisable to consult high court lawyers in Chandigarh to ensure compliance with property laws.

2. Is registration required for SPA and GPA?

Yes, as per Section 17 of the Indian Registration Act, 1908, registration of SPA and GPA is mandatory if they involve the transfer, sale, or mortgage of immovable property.

When is Registration Required?

  • If an SPA or GPA grants authority to deal with immovable property, it must be registered with the Sub-Registrar’s office.
  • In cases where SPA or GPA is executed abroad, it must be notarized and attested by the Indian Embassy and subsequently adjudicated by the local sub-registrar in India.
  • An unregistered SPA or GPA is not admissible as evidence in court and does not grant enforceable rights to the agent.

Exceptions to Registration Requirement

  • If SPA is granted for a court case representation, it does not need to be registered.
  • If the power granted does not involve property transactions, registration is not mandatory.

Since property-related transactions are high-value and legally sensitive, it is recommended to consult lawyers in Chandigarh for proper execution and registration of SPA and GPA.

3. Can a power of attorney be revoked?

Yes, a Special Power of Attorney (SPA) or General Power of Attorney (GPA) can be revoked by the principal at any time unless it was given for consideration under Section 202 of the Indian Contract Act, 1872.

How to Revoke a Power of Attorney?

  • Issue a Revocation Deed – A legal document explicitly revoking the power of attorney must be executed and notarized.
  • Notify the Agent – The principal must send a legal notice to the agent informing them about the revocation.
  • Inform the Relevant Authorities – If the POA was registered, the revocation must also be registered with the Sub-Registrar’s Office.
  • Publish in Newspapers – To avoid misuse, the revocation should be published in newspapers as public notice.
  • File an Intimation with Banks or Other Concerned Parties – If the POA was being used for banking or financial matters, concerned institutions must be notified.

When Can’t a POA Be Revoked?

  • If the POA was executed for a consideration (i.e., the agent paid for the right to act), it cannot be revoked unilaterally.
  • If the agent has acted upon the POA and partly performed obligations, revocation may lead to legal disputes.

For legally sound revocation, individuals should seek legal guidance from high court advocates in Chandigarh to ensure a properly documented process.

4. What happens if an agent misuses the power of attorney?

If an agent misuses the SPA or GPA, the principal can take legal action under various provisions of Indian law.

Legal Remedies Available

  • Filing a Fraud and Breach of Trust Case
    • Under Section 318(4) of the BNS, an agent who fraudulently misuses the POA for personal gain can face criminal charges for cheating and fraud.
    • Under Section 316(2) of the BNS, criminal breach of trust can be filed if the agent acts against the principal’s interests.
  • Revocation of the Power of Attorney
    • The principal should immediately revoke the SPA or GPA and notify concerned parties, banks, and land authorities.
  • Filing a Civil Suit for Injunction
  • Public Notice and FIR Registration
    • If the agent misuses the GPA to sell property, the principal must file a police complaint (FIR) and publish a public notice in newspapers to prevent fraudulent transactions.

For legal proceedings against an agent misusing SPA or GPA, it is advisable to consult high court advocates in Chandigarh specializing in property law and fraud cases.

5. Who can execute a Power of Attorney?

Any person who is legally competent under Indian law can execute a Power of Attorney (SPA or GPA).

Eligibility to Execute POA

  • The person must be above 18 years of age.
  • The person must be of sound mind and capable of understanding legal obligations.
  • The principal should not be declared insolvent or bankrupt.
  • If the principal is an NRI, the POA must be notarized in the foreign country and attested by the Indian Embassy.

Who Can Be an Agent?

  • The agent can be an individual, family member, legal professional, or a business associate.
  • The agent should be trustworthy and legally competent to perform transactions.
  • The principal must clearly define the agent’s powers to prevent misuse.

Executing an SPA or GPA requires proper legal documentation. Consulting lawyers in Chandigarh ensures that legal obligations, scope, and protections are well understood before executing a Power of Attorney.

Understanding the legal implications of SPA and GPA is crucial for property transactions, financial decisions, and legal representations. While SPA provides limited authority for specific transactions, GPA grants broader powers, making their use case-sensitive.

Before executing a Power of Attorney, it is essential to:

  • Register the SPA or GPA with the appropriate authority if it involves immovable property.
  • Clearly define the scope and limitations of the agent’s authority.
  • Revoke the POA properly in case of misuse or completion of the assigned task.
  • Seek legal advice from high court advocates in Chandigarh for property-related SPA/GPA execution and revocation.

By following proper legal procedures, individuals can prevent fraud, safeguard property rights, and ensure the smooth delegation of authority through a legally valid Power of Attorney.