IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SUNITA AGARWAL, C.J., PRANAV TRIVEDI, J.
Maheshbhai Ramanbhai Patel – Appellant
Versus
Karmajyot Co-Operative Hosg. Society Ltd & Ors. – Respondents
R/Letters Patent Appeal No. 609 of 2023 In R/SPECIAL CIVIL APPLICATION NO. 2204 of 2004 With CIVIL APPLICATION (FOR STAY) NO. 1 of 2023
Decided on : 05-12-2024
(A) Urban Land (Ceiling and Regulation) Act, 1976 - Consent Decrees - Quashing of consent decrees obtained by fraud - The learned Single Judge quashed the consent decrees dated 24.08.2000 and 17.05.2003, finding them to be products of fraud perpetrated by the original owner and third parties, denying the petitioner society's rights over the land. (Paras 1, 9, 12, 15, 17, 20, 40, 46)
(B) Fraud - Definition and implications - The court reiterated the principle that a judgment or decree obtained by fraud is a nullity and can be challenged in any court. (Paras 40, 42, 44)
Facts of the case:
The petitioner society challenged two consent decrees, asserting they were obtained fraudulently by the original owner and a third party, without involving the society in the suits. (Paras 1, 4, 20)
Findings of Court:
The court found that the consent decrees were obtained through fraudulent means, thus rendering them null and void. (Paras 46, 50)
Issues: Whether the consent decrees obtained by the original owner and third parties can be set aside due to fraud. (Paras 15, 17)
Ratio Decidendi: The court emphasized that fraud vitiates all judicial acts, and a decree obtained by fraud is non-existent in the eyes of the law. (Paras 40, 42)
Result: Appeal dismissed.
JUDGMENT :
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
1. By means of the instant appeal, the appellant herein seeks to challenge the judgment and order dated 03.03.2023 passed by the learned Single Judge in granting the prayers made by the original petitioner for quashing the consent decrees dated 24.08.2000 passed in Special Civil Suit No. 637 of 2000 and dated 17.05.2003 in Regular Civil Suit No. 538 of 2003. Further the direction issued by the learned Single Judge that any action taken pursuant to the aforesaid consent decrees against the petitioner society be also quashed and set aside. A further direction has been given to the appropriate officer as authorised by the court of Principal Senior Civil Judge, Vadodara and the District Collector, to register criminal proceedings against the perpetrators of fraud.
2. We may note that the original Writ petition was filed by the society registered under the Gujarat Cooperative Societies Act, 1961, constituted for the purpose of construction of residential units for its members. The original respondent no.4 who was holding the agricultural land bearing Revenue survey no.640 in the sim of village Gotri, District Vadodara had executed two sale deeds in favour of the petitioner society on 10.11.1985 with regard to an area of 1440 sq. mtrs. of land, which was declared as retainable land under the provisions of the Urban Land (Ceiling And Regulation) Act, 1976. It is noted by the learned Single Judge that the ULC authority disposed of the declaration form submitted by the original owner, viz. respondent no.4 of by order dated 30.03.1991, whereunder an area of 3861 sq. mtrs. of Revenue survey no. 650 was declared surplus and vested with the State Government, while the remaining 1440 sq. mtrs. of land was declared in the holding of respondent no.4. It is also noted that the possession of the surplus land was already taken by the State authorities on 02.11.1985.
3. Much after the completion of the ceiling proceedings and execution of the sale deeds in favour of the original petitioner society, a civil suit was instituted by a third party, viz. respondent no.5 in the original petition before the Court of Civil Judge (SD), Vadodara seeking right in the entire piece of land bearing Revenue survey no. 650 admeasuring 5261 sq.mtrs. by praying for specific performance of an agreement. The said suit was registered as Special Civil Suit No. 637 of 2000. It is pertinent to note that only respondent no.4-original owner of the land in question was impleaded in the said suit and it was got disposed of on a compromise purshis dated 08.08.2000 submitted before the Civil Judge (SD), Vadodara. A decree dated 24.08.2000 in terms of the compromise was passed for execution of the sale deed.
4. It is an admitted fact of the matter that neither the State Government with which the area of 3861 sq. mtrs. of surplus declared land already vested nor the original petitioner society which had purchased the area of 1440 sq. mtrs. vide sale deeds dated 10.11.1985, were joined as parties in the suit. The result is that the suit was decreed on a compromise arrived between the original owner namely respondent no.4 and a third party plaintiff in order to frustrate the interest of the State and the society.
5. On coming to know about the compromise decree dated 24.08.2000, the petitioner society filed a Review application no.301 of 2000 before the Civil Judge (SD) Vadodara pointing out the correct facts.
6. During the pendency of the said review application, the appellant herein viz. the original respondent no.7 instituted a Regular Civil Suit No. 535 of 2003 in the Court of Civil Judge, Vadodara on 15.05.2003 on the plea of adverse possession over the area of 1440 sq. mtrs. of Revenue survey no. 650. Within a period of 2 days of the institution of the said suit, on a compromise purshis, the decree dated 17.05.2003 was passed granting declaration in favour of the appellant of being in possession of the land
Sadhana Lodh v. National Insurance Co. Ltd. [(2003) 3 SCC 524]
Horil v. Keshav [(2012) 5 SCC 525]
Triloki Nath Singh v. Anirudh Singh [(2020) 6 SCC 629]
Shree Surya Developers and Promoters vs. N. Shailesh Prasad & Ors. [(2022) 5 SCC 736
S.P. Chengalvaraya Naidu v. Jagannath [(1994) 1 SCC 1]
Ganpatbhai Mahijibhai Solanki v. State of Gujarat [(2008) 12 SCC 353]
K.D. Sharma v. SAIL [(2008) 12 SCC 481]
Shyam Sel & Power Ltd. v. Shyam Steel Industries Ltd. [(2023) 1 SCC 634]
United India Insurance Co.Ltd vs Rajendra Singh & Ors [AIR 2000 SC 1165]
A consent decree obtained by fraud is a nullity and can be challenged in any court, reinforcing the principle that fraud vitiates all judicial acts.
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 Consti....
A consent decree obtained by fraud must be challenged in the court that issued it; separate suits for challenge are not maintainable.
Fraudulent consent decrees and unilateral cancellation deeds are void and non est in law; the court can quash such documents under Articles 226 and 227, asserting that fraud must not be tolerated in ....
Written Statement – Assertion made in plaint is not a proof and burden lay upon plaintiff to prove facts and averments made in its plaint even if there is no written statement filed by defendants to ....
An independent suit challenging a consent decree is barred under Order XXIII Rule 3A of the C.P.C. if the allegations of fraud are predominantly about breach/non-compliance of the consent terms/conse....
An appeal against a consent decree is barred under Section 96(3) of the CPC; aggrieved parties must contest the decree's validity in the same court that issued it.
(1) When fraud is alleged same is required to be pleaded and established by leading evidence. Mere allegation that there was a fraud is not sufficient.(2) Where any immovable property has been sold i....
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