In a recovery suit filed by a financial institution, against a Company, during the pendency of the proceedings, the company transfers its right title and marketability in favour of a purchaser who undertook to clear the liabilities of the Company. The said suit is now being represented by the purchaser and depose evidence, the Company gave Authority by a Power of Attorney (POA) to the purchaser, the Agent being not a Director or an Officer of the Company would like to examine himself as a witness of the Company to depose the affairs of the Company. The Law in India is very clear and such person cannot be allowed to depose any evidence in respect of affairs of the Company as regards its debt with the Financial Institution. In the case of Ram Prasad v. Hari Narain – AIR 1998 Raj 185, it was held
that the word "acts" used in Rule 2 of Order III of the CPC does not
include the act of power of attorney holder to appear as a witness on behalf of
a party. Hence, a Counter Proof Affidavit filed as witness statement by such POA is not valid in so far as it deals with the amounts paid by the Company to its creditors.
