SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2003 Supreme(Cal) 658

High Court Of Calcutta
KALYAN JYOTI SENGUPTA
RAJ KUMAR RAWALA - Appellant
Versus
MANABENDRA BANERJEE - Respondent
G. A.  4286  Of  2000
Decided On : 12/24/2003

A consent decree or terms of settlement do not require stamping under the Indian Stamp Act or registration under the Indian Registration Act if they do not effect any present demise of the property and merely record an agreement for sale of an undivided interest.

Headnote:

PARTITION SUIT - SETTING ASIDE OF DECREE AND ORDER - FRAUD - LIMITATION - INDIAN STAMP ACT, 1899 - INDIAN REGISTRATION ACT, 1908.

Fact of the Case:

Petitioner sought to set aside an order and decree passed by the High Court of Calcutta, alleging fraud and coercion in obtaining the terms of settlement and conveyance. He claimed that the decree was not enforceable as it was not engrossed on a stamp paper, and that the terms of settlement were not admissible in evidence as they were not stamped. The plaintiff opposed the application, arguing that it was barred by limitation and that the allegations of fraud were unfounded.

Finding of the Court:

The Court held that the application was barred by limitation as it was filed more than 7 years after the passing of the consent order. The Court also found that the allegations of fraud were not substantiated, as the petitioner had acted upon the terms of settlement and accepted the consideration amount without expressing any intention to refund the same. The Court further held that the provisions of the Indian Stamp Act and the Indian Registration Act were not applicable to the impugned order and terms of settlement, as the decree did not effect any present demise of the property and the terms of settlement merely recorded an agreement for sale of an undivided interest.

Issues: 1. Whether the application was barred by limitation. 2. Whether the allegations of fraud were substantiated. 3. Whether the provisions of the Indian Stamp Act and the Indian Registration Act were applicable to the impugned order and terms of settlement.

Ratio Decidendi: 1. The Court held that the application was barred by limitation as it was filed more than 7 years after the passing of the consent order, and the petitioner had not established any sufficient cause for the delay. 2. The Court held that the allegations of fraud were not substantiated, as the petitioner had acted upon the terms of settlement and accepted the consideration amount without expressing any intention to refund the same. The Court also noted that the petitioner had not made any contemporaneous complaint regarding the alleged threat, coercion or intimidation. 3. The Court held that the provisions of the Indian Stamp Act and the Indian Registration Act were not applicable to the impugned order and terms of settlement, as the decree did not effect any present demise of the property and the terms of settlement merely recorded an agreement for sale of an undivided interest.

Final Decision: The Court dismissed the petitioner's application.

KALYAN JYOTI SENGUPTA, J.

( 1 ) THIS application has been taken out in the aforesaid partition suit after the same being disposed of by passing a decree and order on the basis of the terms and settlement dated 11th October, 1993. The reliefs claimed herein are for setting aside of order and decree passed by the hon'ble Mr. Justice Babulaljain (as His Lordship then was) and for granting leave to the petitioner to file appropriate application for setting aside of the deed of conveyance dated 12th October, 1993 in respect of the premises no. 17, Loudon Street, Calcutta in appropriate form. The fact of the case in the petition runs as follows :- the said premises No. 17 Loudon Street, Calcutta - 700 017 (hereinafter referred to as the said premises) in which the defendant/ petitioner was a monthly tenant in respect of the ground floor, as well as the first floor thereof, was owned absolutely by one Smt. Pritilata kanjilal since deceased. Before her death she made and published her last will and testament bequeathing amongst others, her right, title and interest in respect of the aforesaid premises in favour of one smt. Lina Mukherjee. The said Smt. Lina Mukherjee applied for grant of probate of the said will and the same was contested by one Sankar kanjilal. The said testamentary suit, in which probate of the will of the said testatrix was asked for, was disposed of on term of settlement. By the agreement dated 18th July, 1986 the said Smt. Lina Mukherjee and Sankar Kanjilal agreed to sell the said premises at a total consideration of Rs. 20 lacs. In terms of the said agreement a sum of rs. 2 lacs was paid as and by way of earnest money and part payment at the instance of the petitioner. The said Sankar Kanjilal was also paid a sum of Rs. 8 lacs by the petitioner for relinquishing his claim in respect of the said premises in terms of compromise with Lina mukherjee In connection with probate proceedings. The petitioner having had no sufficient means and fund to develop and promote the said property asked the aforesaid plaintiff Raj Kumar Rawala to join with him for developing and promoting the premises after demolishing the structure. The said development project was assessed at Rs. 50 lacs. Thereafter, a deed of conveyance was executed by said Smt. Lina Mukherjee in favour of both the plaintiff and defendant in the suit, thus, the property was sold to them jointly. It is said that the petitioner/defendant had paid the balance consideration money of rs. 18 lacs to the said Lina Mukherjee and the plaintiff did not contribute a single paise towards the said consideration. Thus, the plaintiff's name was mentioned in the conveyance without any payment of consideration, therefore, the plaintiff did not acquire any right, title and interest in the suit property on the strength of the said deed of conveyance. The plaintiff in breach of the agreement failed and neglected to take any step for demolishing the building for promoting and developing thereof. Instead of discharging his obligation in terms of the development agreement the plaintiff had filed a partition suit in or about 1991. In the plaint the plaintiff falsely stated his right of 15th/16th share in the said premises, and wrongly contended that the petitioner/defendant had 1/16th share.

( 2 ) ON receipt of the writ of summons the defendant/petitioner filed written statement and stated all the aforesaid facts. The plaintiff also made an application for interlocutory relief of the aforesaid suit for appointment of receiver and injunction. The said application for interlocutory relief came to be heard before the Hon'ble Mr. Justice Babulal Jain as "new Motion" on 5th May, 1993 and an order of injunction was passed restraining both the parties from creating any tenancy or-inducting any party or for parting with possession of any portion of the said premises. Both the parties were restrained from altering status quo as on that date in respect of the occupants or tenants in any manner





































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top