Sections 1-3 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Powers-of-Attorney Act, 1882 (7 of 1882) is a short statute. Its first three sections give the short title, extent and commencement (section 1), a definition of a power-of-attorney (section 1A), a rule that the donee may execute in his own name (section 2), and a protection for a person who pays or acts in good faith without knowing that the donor has died, become of unsound mind, become insolvent or revoked the power (section 3). As per the consolidated text consulted, the Act describes the person who gives the power as the "donor" and the person who receives it as the "donee". If a power of attorney or a related declaration has to be drafted or reviewed, our affidavit and declaration drafting service can help.
A power-of-attorney includes any instrument empowering a specified person to act for and in the name of the person executing it (section 1A). The donee may execute or do any instrument or thing in his own name and signature, and his own seal where sealing is required, by the authority of the donor, and it is as effectual in law as if done in the donor's name (section 2). A person who makes a payment or does an act in good faith under a power is not liable merely because the donor had died, become of unsound mind or insolvent, or had revoked the power, if he did not know of it at the time (section 3).
Section 1: short title, extent and commencement
Section 1 has three parts.
| Part | What the print says |
|---|---|
| Short title | "This Act may be called The Powers-of-Attorney Act, 1882." |
| Local extent | "It applies to the whole of the India [***]" |
| Commencement | "and it shall come into force on the first day of May, 1882." |
Two printing points. In the extent line the copy reads "the whole of the India" and ends with an omission mark "[***]"; the words that were omitted are not shown, and this article does not say what they were or what the extent is today. In the commencement line the sentence begins with a lower-case "and" because of the way the print runs the three parts together. The copy is headed "[24th February, 1882]" as the date of the Act.
Your State may have amended the Act or made rules, and a later amendment may exist, so check the official text and the position in your State.
Section 1A: the definition
Section 1A is printed in square brackets, which marks it as inserted. It reads: "In this Act, power-of-attorney includes any instrument empowering a specified person to act for and in the name of the person executing it."
Notice the word "includes". The definition is not stated as exhaustive. Its core is an instrument that empowers a specified person to act for and in the name of the person who executes it. The Act itself does not use a special form of words, and the text consulted prescribes none.
The Statement of Objects and Reasons reproduced in the copy for the amending Act of 1982 says that the Act, though it deals with powers-of-attorney, "does not contain the definition of power-of-attorney", and that it was proposed to remedy this defect by inserting a suitable definition. That is background; the definition itself is the law, in the words above.
If you want the wider picture of how a power of attorney works between the donor and the donee, and when it ends, our guide on the Powers-of-Attorney Act and how it works is the place to begin.
Section 2: execution under a power-of-attorney
Section 2 says: "The donee of a power-of-attorney may, if he thinks fit, execute or do any [ ] instrument or thing in and with his own name and signature, and his own seal, where sealing is required, by the authority of the donor of the power; and every [ ] instrument and thing so executed and done, shall be as effectual in law as if it had been executed or done by the donee of the power in the name, and with the signature and seal, of the donor thereof."
In short: the donee may, if he thinks fit (it is not compulsory), execute or do an instrument or thing in his own name, signature and seal, by the authority of the donor, and the result is as effectual in law as if done in the donor's name, signature and seal.
The print shows omission marks "[ *]" at two places inside the sentence. The words are not shown, and the matter is left as printed.
The second paragraph of section 2 reads: "This section applies to powers-of-attorney created by instruments executed either before or after this Act comes into force." So the rule is not limited to powers made after 1 May 1882.
The 1882 Statement of Objects and Reasons reproduced in the copy says the Bill's first object was to render it legal for such donees to execute in and with their own names and seals. It says that, as the law stood, the donee when executing an instrument must sign, and where sealing is required must seal, in his principal's name (the copy prints this as "u his principal's name", a printing slip). The Act says nothing about stamp duty, registration or the form of the instrument executed by the donee; the guides on this site cover those subjects from other laws. See our guides on stamp duty on a power of attorney and on immovable property and a power of attorney.
Section 3: payment or act in good faith without notice
Section 3 protects the person who relies on the power. Quoted as printed, it says: "Any person making or doing any payment or act in good faith, in pursuance of a power-of-attorney, shall not be liable in respect of the payment or act by reason that, before the payment or act, the donor of the power had died or become mind, [ ], of unsound mind, [ ] or insolvent, or had revoked the power, if the fact of death, [ ] insoundness of mind, [ ] insovency or revocation was not, at the time of the payment or act, known to the person making or doing the same."
The print of this section is garbled. It reads "become mind" and "insovency", and carries several omission marks. The sense, as far as the printed words allow, is that the events are the donor's death, unsoundness of mind, insolvency, or revocation of the power. Check the official text of section 3 before relying on the exact wording.
Read on that footing, the protection runs as follows.
| Element | Text |
|---|---|
| Who is protected | Any person making or doing any payment or act in good faith in pursuance of a power-of-attorney |
| Protection | No liability merely because the donor had died, become of unsound mind or insolvent, or revoked the power |
| Condition | The fact was not known, at the time, to the person making or doing it |
The payee's position
The second paragraph says: "But this section shall not affect any right against the payee of any person interested in any money so paid; and that person shall have the like remedy against the payee as he would have had against the payer, if the payment had not been made by him."
In plain terms, the protection is for the payer. A person interested in the money (for instance, the donor's estate or someone entitled to it) keeps his right against the payee, and has the same remedy against the payee as he would have had against the payer if the payer had not paid. The text consulted says nothing about how such a remedy is pursued.
When section 3 applies
The last paragraph reads: "This section applies only to payments and acts made or done after this Act comes into force." Unlike sections 2 and 4, it is not stated to apply to earlier instruments.
The 1882 Statement reproduced in the copy says the Bill's second object was to preclude doubts about the liability of a donee who pays in good faith without knowing of such an event. It is background, not part of section 3.
An example
Savita gives Rohan a power of attorney to collect rent from her tenant. Rohan, as donee, may sign a rent receipt in his own name and signature under section 2, and it is as effectual in law as if Savita had signed in her own name. Suppose Savita revokes the power and Rohan does not know. If Rohan, in good faith and in pursuance of the power, collects rent and pays it over, section 3 means he is not liable merely because the power had been revoked before he acted, because he did not know of it at the time. Another person interested in the money, however, keeps whatever right he has against the payee.
Need help with a power of attorney or related declaration?
How far a donee can go depends on the wording of the power and on other laws that this short Act does not cover. Our affidavit and declaration drafting team can help you prepare or review the papers.
Key takeaways
- The Act's short title is The Powers-of-Attorney Act, 1882; it came into force on 1 May 1882. The extent line is printed with an omission mark.
- Section 1A defines a power-of-attorney as including any instrument empowering a specified person to act for and in the name of the person executing it.
- Under section 2 the donee may, if he thinks fit, execute or do an instrument or thing in his own name, signature and seal, and it is as effectual as if done in the donor's name.
- Section 3 protects a person acting in good faith who did not know that the donor had died, become of unsound mind or insolvent, or revoked the power; the print is garbled, so check the official text.
- A person interested in the money keeps his right against the payee.
- Check your State's amendments and rules and any later amendment.
Read next
- Deposit of power of attorney in court and married woman's power: sections 4 to 6
- Power of attorney recognised for presenting documents: section 33 of the Registration Act
- Power of attorney under the 1882 Act: how it works and when it ends
- Section 201 of the Indian Contract Act, 1872: termination of agency
Disclaimer: Based on a print of the Powers-of-Attorney Act, 1882 marked as last updated on 30 December 2019, as consulted on 2 October 2026. State amendments and rules, later amendments, registration fees and stamp duty are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.