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2023 Supreme(Guj) 196

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, J.
Karmajyot Co-Operative Hosg. Society Ltd & others – Appellants
Versus
State Of Gujarat & 6 others –Respondents
R/Special Civil Application No.2204 of 2004
Decided on : 03-03-2023

Advocates:
Advocate Appeared:
For the Appellant :MR BS PATEL, SENIOR ADVOCATE WITH MR.UMANG OZA
For the Respondent:MR JAYNEEL PARIKH, MR SH SANJANWALA, SENIOR ADVOCATE with MR NK MAJMUDAR

A legal right cannot arise from an unlawful act, and a judgment, decree, or order obtained by fraud is null and void. The court can invoke its inherent powers under Articles 226 and 227 of the Constitution of India to quash and set aside consent decrees obtained by fraud and permit the registration of criminal proceedings against the perpetrators.

Headnote:

Fraud - Land Dispute - Urban Land (Ceiling and Regulations) Act, 1976 - [FRAUD] - [Land Dispute] - [Urban Land (Ceiling and Regulations) Act, 1976, Section 23] - The court quashed and set aside the consent decrees obtained by fraud in Special Civil Suit No.637 of 2000 and Regular Civil Suit No.538 of 2003. The court held that a legal right cannot arise from an unlawful act and permitted the registration of criminal proceedings against the perpetrators.

Fact of the Case:

The petitioner, a registered society, sought to quash the consent decrees obtained by fraud in Special Civil Suit No.637 of 2000 and Regular Civil Suit No.538 of 2003. The petitioner had purchased 1,440 sq.mtr. of land, but the respondents obtained consent decrees affecting the land belonging to the petitioner-Society and the land belonging to the Government. The petitioner alleged that the respondents played fraud with the courts and obtained consent decrees in their favor.

Finding of the Court:

The court found that the consent decrees were obtained by fraud and were null and void. It held that a legal right cannot arise from an unlawful act and permitted the registration of criminal proceedings against the perpetrators. The court also quashed any action taken pursuant to the consent decrees against the petitioner-Society.

Issues: The issues involved the fraudulent obtaining of consent decrees affecting the land belonging to the petitioner-Society and the land belonging to the Government. The court also considered the maintainability of the writ petition filed by the petitioner-Society.

Ratio Decidendi: The court held that a legal right cannot arise from an unlawful act and that a judgment, decree, or order obtained by fraud is null and void. It invoked its inherent powers under Articles 226 and 227 of the Constitution of India to quash and set aside the consent decrees obtained by fraud. The court also permitted the registration of criminal proceedings against the perpetrators.

Final Decision: The court quashed and set aside the consent decrees obtained by fraud in Special Civil Suit No.637 of 2000 and Regular Civil Suit No.538 of 2003. It also quashed any action taken pursuant to the consent decrees against the petitioner-Society. The court permitted the registration of criminal proceedings against the perpetrators and held that a legal right cannot arise from an unlawful act.

JUDGMENT :

By way of the present writ petition filed under Articles 226 and 227 of the Constitution of India, the petitioners are seeking issuance of a writ of certiorari or direction quashing and setting aside the consent decree dated 24.08.2000 passed by the Civil Judge (S.D.), Vadodara in Special Civil Suit No.637 of 2000 for the entire land bearing Revenue Survey No.650, admeasuring 5,261 sq.mtr. between respondent Nos.4, 5 and 6 and also consent decree dated 17.05.2003 passed by the Civil Judge (S.D.), Vadodara in Regular Civil Suit No.538 of 2003 between respondent Nos.4, 5 and 7 and the petitioners also seeking direction directing respondent No.1 to incorporate the name of the petitioner-Society in the record of rights for the land bearing Revenue Survey No.650, admeasuring 1,440 sq.mtr., in pursuance to two registered sale deeds dated 10.12.1985.

FACTS

2. The petitioner No.1 is a registered society registered under the provisions of the Gujarat Co-operative Societies Act, 1961 (“the Act” for short) for the purpose of construction of the residential units for its members. Originally, respondent No.4 was holding the agricultural land bearing Revenue Survey No.650 in the sim of Village Gotri, Dist. Vadodara.

2.1) The respondent No.4 had filed a declaration form before the competent authority and Additional Collector, Vadodara under the provisions of the Urban Land (Ceiling and Regulations) Act, 1976 (for short “the Act”). After process of the form, the authority disposed of the declaration form by the order dated 30.03.1991. The limit under the ULC Act was 1,500 sq.mtr. and hence, 3,861 sq.mtr. land was declared as surplus and was vested in the State Government, while remaining 1,440 sq.mtr. land was declared in the holding of respondent no.4.

2.2) Respondent no.4 executed two sale deeds in favour of the petitioner on 10.11.1985 with regard to the 1,440 Sq.mts of land. Thus, the petitioner-Society became the owner of only 1,440 sq.mtr. of the land as per the sale deeds. The petitioner- Society wanted to put up a big scheme, and hence, was in need of excess land, as a result of which the petitioner-Society requested the respondent No.1-State for granting excess land to the petitioner-Society under Section 23 of the ULC Act, but the same could not be crystallized and the respondent No.1 earmarked the land for the Vadodara Municipal Corporation (VMC) for E.W.S. Scheme. The land, admeasuring 1440 sq.mtr. was running in the name of respondent No.4. The respondent No.1 had taken possession of the land on 02.11.1985.

2.3) The respondent No.5, instituted Special Civil Suit No.637 of 2000 before the Court of Civil Judge (S.D.), Vadodara for the entire land bearing Revenue Survey No.650, admeasuring 5,261 sq.mtr. of land, out of which 1,440 sq.mtr. land has been purchased by the petitioner No.1 and the rest of the land is vested with the Government. The said suit was instituted for specific performance of the contract relating to the entire land purchased by the petitioner-Society. On 18.08.2000, a compromise pursis was submitted before the Civil Judge (S.D.), Vadodara and on 24.08.2000 a decree in terms of compromise was passed for execution of the sale deeds. The petitioner-Society was not made a party to the aforesaid suit.

2.4) On being aware about the same, the petitioner-Society filed Review Application No.301 of 2000 before Civil Judge (S.D.), Vadodara pointing out all the facts, wherein, after hearing both the sides, vide order dated 17.09.2003, the said application was dismissed on the ground that the petitioner-Society was not a party in Special Civil Suit No.637 of 2000, even though the petitioner-Society pointed out the ownership of the concerned land.

2.5) During pendency of Review Application No.301 of 2000, the respondent no.7 instituted Regular Civil Suit No.535 of 2003 in the Court of Civil Judge, Vadodara on 15.05.2003, and within two days of institution of the suit, i.e. on 17.05.2003 with the consent of respondent nos.5

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