Power of attorney (POA) in Nepal

Giving someone power of attorney is like appointing a trusted person to act as your helper in important matters. They can do things for you, like sign papers, look after your property, or make legal decisions, all based on what you've agreed upon. This person is often called your "agent" or "attorney-in-fact." They step in when you might not be able to do these things yourself. It's a way to make sure your affairs are taken care of by someone you trust.

In Nepal, a power of attorney can be really helpful. For example, if you're living in Australia but you need someone back in Nepal to handle your affairs, you can give them power of attorney. They can manage your property, sign important papers, or even make financial decisions for you. To be more specific, if you need someone to assist you in divorce-related matters, then you can simply assign someone from Nepal Divorce Services a Power of Attorney.

It's important to remember that you have control over what your representative can do. You can make the power of attorney very specific, like only allowing them to sell a particular piece of property. Or, you can make it more general, letting them handle a broader range of things. Just remember, giving someone power of attorney is a big responsibility, so choose your agent wisely and make sure they understand your wishes. And if you ever change your mind, you can cancel the power of attorney at any time.

Types Of Power Of Attorney

1. Authorized Power Of Attorney (POA)
2. Ordinary Power Of Attorney (POA)

You can authorize someone to represent you in court by giving them a power of attorney. This document will give them the power to file a lawsuit, submit a defense, withdraw a lawsuit, or settle a case on your behalf, whether you have already identified a specific case or not.

Qualifications Of Person To Be Appointed As Attorney?

• A person who has the legal capacity to enter into a contract.
• A person who has not defaulted on a government payment that has been legally claimed, including any required fees or fines for court proceedings related to the claim.
• A person who has not been found guilty of forgery, fraud, corruption, or any offense involving dishonest or immoral behavior.

LAW TO REFER TO: Section 145 of the Civil Procedure Code of Nepal, 2017.

Can One Person Become An Attorney In A Case Or Of A Person More Than One?

A person is allowed to serve as an attorney in multiple cases simultaneously or be designated by multiple individuals as an attorney in a single case. However, it's important to note that a person cannot be appointed as an attorney for both the party making the appointment and the opposing party in the same case simultaneously.

LAW TO REFER TO: Section 147 of the Civil Procedure Code of Nepal, 2017.

Can I Change The Power Of Attorney Or Deal With The Case Voluntarily?

Any party to a legal case can cancel the power of attorney they gave to someone else to represent them, and choose a different attorney or represent themselves by filing a petition with the court. In other words, you have the right to change your mind about who you want to represent you in court or to represent yourself, at any time. To do this, you would need to file a petition with the court.

The court will keep a record of any changes to a party's representation, whether it is to a new attorney or to self-representation. This is important to ensure that the court has a clear understanding of who is representing each party in the case.

LAW TO REFER TO: Section 152 of the Civil Procedure Code of Nepal, 2017.

When Is The Power Of Attorney Used?

Power of attorney can be particularly useful in situations where the principal (main person) is unable to personally handle certain affairs. For example, if someone is living abroad or unable to manage their affairs due to illness, they can grant power of attorney to a trusted individual or professional.

What Are The Responsibilities Of POA?

The agent is legally obligated to act in the best interests of the principal and follow their instructions. They must keep accurate records of their actions and, in some cases, may need to provide an account of their activities. Here are the key responsibilities of POA:

Acting in the Interest of the Person Who Assigned the POA

This is the primary duty of a person (agent) with a Power of Attorney. They must always prioritize the best interests and well-being of the person who granted them the authority.

Legal Representation

The agent shall represent the person who assigned the POA in various legal matters, including but not limited to, financial transactions, property management, and other legal affairs.

Documentation and Paperwork

The agent is responsible for maintaining accurate and thorough records of all transactions, decisions, and communications made on behalf of the person who granted the POA. This ensures transparency and accountability.

Avoiding Conflict of Interest

Agents must steer clear of situations where their personal interests may clash with the best interests of the person who assigned the POA. They should act impartially and without bias.

Communicating with the Principal to Create a Win-Win Situation

Open and transparent communication with the person who granted the POA is crucial in that regard. This facilitates informed decision-making and helps ensure that actions taken are mutually beneficial.

Termination

A power of attorney ends under certain conditions, such as when the task specified is completed, the principal revokes it, or in the unfortunate event of the principal's passing. Besides, these are the conditions where a power of attorney can be terminated according to law:

• If the specified act, purpose, or period in the authorized attorney's power comes to an end or expires.
• If the authorized attorney's power is set up in a way that it ends after a specific event or circumstance, and that event or circumstance either occurs or doesn't exist.
• If the person who appointed the attorney cancels the power of attorney by announcing it in two national daily newspapers.
• If either the person who appointed the attorney or the attorney passes away before the specified act in the power of attorney is completed.
• If the concerned individual personally appears and transfers or swaps the rights in the property that the attorney was meant to handle.
• If a legal case is initiated in court between the person who appointed the attorney and the attorney, or a member of their joint family regarding the property mentioned in the power of attorney.
• If any legal case is filed in court between the person who appointed the authorized attorney and the attorney.
• If the authorized attorney provides written notice to the person who appointed them, expressing their unwillingness to continue acting in that capacity, and includes the original copy of the power of attorney.

LAW TO REFER TO: Section 155 of the Civil Procedure Code of Nepal, 2017.

Common Used Cases:

In Nepal, power of attorney is commonly used for tasks like property transactions, managing financial assets, Divorce, settling legal matters, and representing the principal in administrative or legal proceedings.

Drafting And Formalities

To create a power of attorney in Nepal, it must be in writing and signed by the principal. It may also require witnesses or notarization, depending on the specific requirements of the situation.

It's important for individuals in Nepal considering a power of attorney to seek legal advice and ensure the document is carefully drafted to meet their specific needs and circumstances. Choosing a trusted and responsible agent is also of utmost importance, as they will be entrusted with significant authority over the principal's affairs.