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2019 Supreme(Bom) 2270

IN THE HIGH COURT OF JUDICATURE AT BOMBAY AT NAGPUR BENCH
Pushpa V. Ganediwala, J.
Gopal - Appellant
Versus
Mukund - Respondent
Second Appeal No. 34 of 2004
Decided On : 17-12-2019

Advocates Appeared:
C.A. Joshi, Advocate, B.N. Mohta, Advocate

Admissibility of oral evidence under Sections 91 and 92 of the Evidence Act to demonstrate that a document was never intended to be acted upon and was executed as a sham.

Headnote:

Evidence Act - Sale Deeds - Sections 91, 92 - The court discussed the provisions of Sections 91 and 92 of the Evidence Act, emphasizing that oral evidence is admissible when the transaction recorded in the document was never intended to be acted upon at all between the parties and the document is a sham. The court highlighted the admissibility of oral evidence to show that the document executed was never intended to operate as an agreement but that some other agreement altogether, not recorded in the document, was entered into between the parties.

Fact of the Case:

The plaintiff filed a suit for declaration and permanent injunction based on sale deeds, claiming ownership and possession of the suit land. The defendant disputed the sale deeds, asserting they were nominal and executed as security for a loan.

Finding of the Court:

The court found that the plaintiff failed to prove the truthfulness of the contents in the sale deeds, while the defendant proved that the intention since the beginning was not to act upon the sale deeds and they were executed only for the purpose of security for a loan transaction.

Issues: Dispute over the validity and intention behind the sale deeds, admissibility of oral evidence under Sections 91 and 92 of the Evidence Act, and the transfer of interest in the property.

Ratio Decidendi: The court held that oral evidence is admissible to show that the sale deeds were never intended to be acted upon and were executed as a sham, emphasizing the provisions of Sections 91 and 92 of the Evidence Act.

Final Decision: The court quashed and set aside the judgment and decree of the first appellate court, confirming the judgment and decree of the trial court, and allowed the appeal with no order as to costs.

JUDGMENT

Pushpa V Ganediwala, J. - Heard.

2. This is the defendant''s appeal against the Judgment and decree dated 31/10/2003 passed by the Court 3rd Additional District Judge, Akola in Regular Civil Appeal No.165/1999, whereby the learned First Appellate Court partly allowed the appeal by setting aside the Judgment and decree dated 09/04/1999 of Civil Judge, Junior Division, Patur in Regular Civil Suit No.41/1991 and allowed the plaintiff to execute the decree of possession against the defendant and also allowed the plaintiff to initiate a proceeding for claim towards mesne profit.

3. While admitting this appeal on 03/06/2008, this Court framed the following substantial questions of law.

1) Whether the first appellate Court was right in holding that the party is prevented from leading evidence by virtue of provisions contained in Sections 91 and 91 of the Evidence Act, even if the plea was only to the effect that particular document was not intended to be acted upon ?

2) Whether it was necessary for the defendants to have instituted a suit for specific performance of reconveyance of the field in his favour by virtue of an agreement Exh.137 ?

4. Heard Shri C. A. Joshi, learned counsel appearing on behalf of the appellants and Shri B. N. Mohta, learned counsel appearing on behalf of respondents. The parties hereinafter referred to as per their original status in the suit.

The facts in brief, necessary to decide the present appeal, are as under :-

5. The plaintiff filed a suit for declaration and permanent injunction on the basis of sale deeds dated 29/04/1974 and 31/05/1974 contending that he is the owner of the suit land i.e. Field Survey No.83/4, 2 hectares 81 R of village Tondi, Tq. Patur, Dist. Akola and is in possession thereof. It is the specific defence of the defendant that the abovesaid sale deeds were nominal and were executed by way of security towards loan obtained by the defendant from plaintiff, he executed those sale deeds. The defendant claimed his possession of the suit property even after execution of sale-deeds. As he could not pay interest on the loan amount, therefore, he delivered possession to the plaintiff during the period from 1976-1977 to 1988-1989.

6. By way amendment the plaintiff added pleadings with regard to forcible possession obtained by the defendant during the pendency of the suit and the plaintiff also added relief for possession of the suit property.

7. On the basis of pleadings of the parties, necessary issues were framed and evidence was recorded. The learned Trial Court dismissed the suit vide Judgment dated 09/04/1999 and gave findings that the aforesaid sale deeds were nominal and possession of the suit property was not delivered by defendant to the plaintiff.

8. The plaintiff carried the Judgment and Decree of the dismissal of the suit before the First Appellate Court in R.C.A. No.165/1999. The Appellate Court partly allowed the appeal by setting aside the Judgment and decree of the Trial Court and directed execution of the possession of the suit property in favour of plaintiff. The First Appellate Court held that no evidence could not have been allowed to be led to prove that the aforesaid sale deeds were nominal in view of the provisions of Sections 91 and 92 of the Evidence Act and Exh.137 cannot be considered for want of registration.

9. The defendant carried the impugned Judgment and decree of the First Appellate Court in the second appeal and the aforesaid substantial questions of law have been framed by this Court.

10. Shri Joshi, learned counsel appearing on behalf of appellant submitted that the plaintiff has failed to prove the sale deeds dated 29/04/1974 and 31/05/1974 and the First Appellate Court committed an error in relying on those sale deeds which were nominal documents executed for the purpose of security of loan of Rs.2,500/-. The learned counsel in support of his submissions relied on the Judgment of Hon''ble Apex Court in the case of Gangabai Vrs. Chhabubai, (1982)

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