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Heres my code in controller function edit 

(Old password is invalid)

public function action_edit($id = null)
{
    $user = Model_User::find($id);
    //$val = Model_User::validate('edit');

    // if ($val->run())
    // {

//simple auth update user

        $user = Auth::update_user(
                    array(
                        'email'        => Input::post('email'), 
                        'password'     => Input::post('password'),    
                        'old_password' => Input::post('oldpassword'),
                    )
                );

        if ($user)
        {
            Session::set_flash('success', e('Updated user #' ));

            Response::redirect('admin/users');
        }
    else
    {
        if (Input::method() == 'POST')
        {
            $user = Auth::update_user(
                    array(
                        'email'        =>  $val->validated('email'), 
                        'password'     =>  $val->validated('password'),    
                        'old_password' =>  $val->validated('oldpassword'),
                    )
                );
            Session::set_flash('error', $val->error());
        }

        $this->template->set_global('user', $user, false);
    }

    $this->template->title = "Users";
    $this->template->content = View::forge('admin/users/edit');

}