INDIA FINANCIAL ASSN.,SEVENTH DAY ADVEN. vs M.A. UNNEERIKUTTY

The Supreme Court addressed the validity of a sale agreement executed by a Power of Attorney holder under the Companies Act, 1956. It was held that the Power of Attorney granted to defendant No.2 was valid and authorized him to negotiate and enter into a sale agreement on behalf of the Indian Financial Association. The Court upheld the enforceability of the agreement, emphasizing that the plaintiff's payment of earnest money and subsequent advance constituted a binding contract for the sale of the property, thus reversing the High Court's decision that had favored the plaintiff.