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Issues Involved:
1. Authority of Power of Attorney Holder 2. Interpretation of Clause 17 of the Power of Attorney 3. Specific Performance of Agreement of Sale 4. Interim Order of Injunction Detailed Analysis: 1. Authority of Power of Attorney Holder: The appellants, successors of the original defendant No. 2, contested that Mr. Patil, the power of attorney holder, lacked the authority to enter into any agreement for the sale of the Warli property. The appellants argued that Mr. Patil was only authorized to manage the property and negotiate for its sale, but not to sell it or enter into a sale agreement. The court noted that the power of attorney explicitly stated that Mr. Patil was authorized "to negotiate for the sale of the property," but this did not extend to selling or entering into a sale agreement. 2. Interpretation of Clause 17 of the Power of Attorney: The court examined Clause 17 of the power of attorney to determine its true meaning and import. The clause stated that Mr. Patil had the power to "negotiate for the sale of the lands to the prospective purchasers or customers for the best available price." The court clarified that the term "negotiate" is a technical word, implying the process of discussing or arranging the terms of a sale, but not completing the sale itself. The court cited legal definitions and precedents to support the interpretation that negotiation does not equate to the authority to finalize a sale. 3. Specific Performance of Agreement of Sale: The respondent No. 1 filed a suit for specific performance of an agreement of sale dated 10th June 1983, executed by Mr. Patil. The court held that since Mr. Patil did not have the authority to enter into a sale agreement, the agreement could not confer any title or rights to respondent No. 1. The court emphasized that only a person competent to transfer property can do so, and Mr. Patil lacked this competence. 4. Interim Order of Injunction: The interim order of injunction, passed on 19-6-1984, restrained the defendants from selling, transferring, or otherwise dealing with the Warli property. The appellants sought to set aside this order, arguing that it was passed without proper notice to Mr. Warli, the original defendant No. 2. The court found that Mr. Warli had no notice of the Notice of Motion as it was served only on Mr. Patil. The court concluded that the learned single Judge erred in refusing to set aside the interim order, as Mr. Patil had no authority to enter into the sale agreement. Conclusion: The appeal was allowed, and the impugned order of the learned single Judge was set aside. The interim order restraining the appellants from dealing with the Warli property was vacated. The court clarified that Mr. Patil's authority under the power of attorney was limited to negotiating the sale terms, not completing the sale or entering into a sale agreement. The appellants agreed not to transfer, alienate, or dispose of the property for a period of 8 weeks from the date of the order. No order as to costs was made.
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