SUPREME COURT OF INDIA
R.K. Agrawal, Abhay Manohar Sapre, JJ.
Bharvagi Constructions & Anr. – Appellants
Versus
Kothakapu Muthyam Reddy & Ors. – Respondents
Civil Appeal No. 11345 of 2017 (Arising out of S.L.P.(C) No. 23605 of 2015)
Decided On : 07-09-2017
(2008) 2 SCC 660 – Relied upon
2014(9) ADJ 506; Civil Application (OJ) No.144 of 2016; 2017 SCC OnLine Bom 3440; 2015 SCC OnLine Jhar.4377 – Cited with approval
(b) Administration of justice – Judicial discipline – Law laid down by a larger Bench – Binding on smaller benches. (Para 37)
(c) Constitution of India – Article 141 – Law laid down by Supreme Court is law of the land – Supreme Court laying down a particular remedy to follow for challenging the award of Lok Adalat – The same is required to be followed by the litigant in letter and spirit. (Para 37)
(2006) 8 SCC 212 – Relied upon
Facts of the case:
On 07.05.2007, T. Jagat Singh (respondent No. 5 herein) filed a civil suit for specific performance of agreement of sale dated 28.12.1995 said to have been entered into between the parties in respect of agricultural land.
Originally, the plaintiff had filed suit only against defendant Nos. 1 to 9 but later on defendant Nos. 10 to 33 were joined.
During the pendency of civil suit, on 22.08.2007, the parties settled the matter in relation to the suit land and entered into written compromise.
A joint compromise petition signed by all the parties to the suit was accordingly filed before the Lok Adalat. An Award was passed in terms of the compromise petition, which, in turn, disposed of the suit as having been compromised.
On 14.11.2009, respondent Nos. 1 to 4 herein (original defendant Nos. 22 to 25) filed Civil Suit against the plaintiff and the remaining defendants for a declaration that the award passed by the Lok Adalat be declared illegal, null and void and not binding on the plaintiffs a it was obtained by playing fraud/misrepresentation on the plaintiffs
The Trial Court allowed the application filed by the defendants and rejected the plaint by invoking powers under clause (d) of Rule 11.
The plaintiffs filed an appeal before the High Court which was allowed. The High Court held that since the suit is founded on the allegations of misrepresentation and fraud, it is capable of being tried on its merits by the Civil Court.
Finding of the Court:
Impugned judgment is not sustainable.
Result: Appeal allowed.
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JUDGMENT
Abhay Manohar Sapre, J.
Leave granted.
2. This appeal is filed by the defendants against the final judgment and order dated 25.06.2015 passed by the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh in Appeal Suit No. 968 of 2013 whereby the High Court allowed the appeal filed by the respondents herein with costs and set aside the order dated 24.07.2013 passed by the second Additional District Judge, Ranga Reddy District in I.A. No.894 of 2010 in O.S. No.107 of 2010.
3. In order to appreciate the short legal controversy involved in the appeal, it may not be necessary to set out the factual controversy involved in the case in detail and only narration of few facts to appreciate the legal question arising in the case would suffice for the disposal of this appeal.
4. On 07.05.2007, T. Jagat Singh (respondent No. 5 herein) filed a civil suit being O.S. No. 481 of 2007 against respondent Nos. 1 to 34 herein (defendant Nos. 1 to 33) in the Court of District Judge, Ranga Reddy District Court.
5. The suit was for specific performance of agreement of sale dated 28.12.1995 said to have been entered into between the parties in respect of agricultural land totally admeasuring AC. 51.29 guntas in (Sy.Nos. 262-274) situated at Pappalguda village of Rajendranagar Mandal, Ranga Reddy District (hereinafter referred to as the "suit land").
6. Originally, the plaintiff had filed suit only against defendant Nos. 1 to 9 but later on defendant Nos. 10 to 33 made an application for being joined as defendant Nos. 10 to 33 in the civil suit as according to them, they had an interest in the subject matter of the civil suit and also in its decision and, therefore, they were necessary parties to the suit. Their prayer was allowed. The defendants then contested the suit.
7. During the pendency of civil suit, on 22.08.2007, the parties (plaintiff and defendants) settled the matter in relation to the suit land and accordingly entered into written compromise.
8. A joint compromise petition signed by all the parties to the suit was accordingly filed before the Lok Adalat, which held its Lok Adalat sitting in the Court on 22.08.2007.
9. The members of the Lok Adalat before whom the suit was posted for its disposal in terms of the compromise petition filed by the parties perused the compromise petition and accepted the compromise petition finding it to be in order. An Award was accordingly passed on 22.08.2007 under Section 21 of the Legal Services Authorities Act, 1987 (hereinafter referred to as "the Act") in terms of the compromise petition, which, in turn, disposed of the suit as having been compromised. (Annexure P-2).
10. On 14.11.2009, respondent Nos. 1 to 4 herein (who were original defendant Nos. 22 to 25 in Suit No. 481 of 2007) filed Civil Suit No. 107 of 2010 against the plaintiff and the remaining defendants of Civil Suit No. 481 of 2007. This suit was filed in the Court of II Additional District Judge, Ranga Reddy District at L.B.Nagar.
11. This suit was for a declaration that the award dated 22.08.2007 passed by the Lok Adalat in Civil Suit No. 481 of 2007 was obtained by the defendants of this suit by playing fraud/misrepresentation on the plaintiffs and hence the Award dated 22.08.2007 be declared illegal, null and void and not binding on the plaintiffs.
12. According to the plaintiffs, though they were parties to the award along with defendants in Civil Suit No. 481/2007 but since the award dated 22.08.2007 was obtained by the parties by misrepresenting the facts to the plaintiffs which was nothing short of fraud played by the defendants on them to grab their more land without their knowledge and taking advantage of their illiteracy, the same is not a legal award and hence not binding on the plaintiffs. On these averments, the plaintiffs prayed that the award dated 22.08.2007 be declared illegal, void, in-operative and not binding on the plaintiffs.
13. The defendants, on being served with the notice o
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