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2006 Supreme(Ori) 166

2006 (I) OLR (SC) — 643
H. K. SEMA AND DR. AR. LAKSHMANAN, JJ.
N. Khosla... Appellant
Versus
Rajlakshmi (dead) & Ors... Respondents
Civil Appeal No. 3280 of 2002
Decided on 6th March, 2006.

Headnote:1. REGISTRATION ACT, 1908 - Sec. 17(1)(b) - Arbitration Act, 1940 - Sec. 14 - Compulsory registration of document - Dispute referred to Arbitrator with regard to gift deed and resumption of property gifted in favour of respondents/daughters of deceased - Arbitrator recorded the finding on the basis of the pre-existing facts, namely, gift deed, revocation of gift and partition of property between sons of deceased subsequent to revocation of gift deed - A declaration of pre-existing rights which neither creates any right nor extinguishes any right in praesenti or in future - Award does not compulsorily require registration under Act - It can be made rule of Court. (Paras - 24, 26 and 30)

       2. CIVIL PROCEDURE CODE, 1908 - Secs. 33, 13 - Constitution of India - Art. 136 - Fraud on Court - Gift of immovable property made to respondent-daughters of deceased revoked - Respondent accepted cash payment in lieu of their share - Partition of property between sons - Respondents fraudulently obtained mutation in their favour showing deceased as present and witnessing said mutation - Deceased donor in fact had expired long before that - Fraud avoids all judicial acts - A decree obtained by playing fraud is a nullity and it can be challenged in any Court, even in collateral proceedings - Mutation obtained by fraudulent means is non est just like decree obtained by fraud is nullity. (Paras - 30 to 33)

JUDGMENT

H. K. SEMA, J. — Dewan Niranjan Prasad was ex-Minister and a retired Senior Judge of the High Court of Patiala. He had an ancestral kothi known as ‘Nishkam’ situated at 23, Bhupender Nagar Road, Patiala, Punjab. He had two sons, namely- Sh. K. J. Khosla and Sh. N. Khosla and three daughters namely Smt. Rajlakshmi (respondent No.1 herein whose appeal stands abated), Smt. Nirmala and Smt. Saraswati. Since the kothi was an ancestral property, Dewan Niranjan Prasad and his two sons were the coparceners.

2. On 14.10.1956, Dewan Niranjan Prasad had gifted thee plots of land forming part of the kothi in its rear portion to his three daughters with the consent of his wife - Smt. Amar Devi and his two sons. The said gift was duly recorded in the family year book known as "Dussehra Bahi". The said gift was conditional and the condition was that the beneficiaries would construct houses on the gifted plots and shall reside there. The said gift of plots to his three daughters was affirmed by Dewan Niranjan Prasad through a regis¬tered deed on 10.6.1961. However, possession was not delivered. In 1966 Smt. Saraswati died and was survived by her husband B.S. Talwani and sons, respondent No.3.

3. As none of the three daughters, to whom the plots were gifted, took possession and constructed the houses, Dewan Niran¬jan Prasad revoked the Gift Deed and resumed the plots with the express consent of his daughters, Smt. Rajlakshmi, Smt. Nirmala and Sh. B.S. Talwani - husband of late Smt.Saraswati and paid Rs. 10,000/- to each of them in lieu of the said plots. Receipt of the amount as consideration for resumption of the said plots was also duly acknowledged by each of the beneficiaries. Thereafter, Dewan Niranjan Prasad partitioned the entire property “Nishkam” (including the plots earlier gifted to his daughters and then resumed by him) by allotting separate shares to his two sons,namely, S/Sh.K.J. Khosla and N. Khosla. The oral partition was recorded in writing in the memo of partition dated 6.12.1974. Dewan Niranjan Prasad died on 15.1.1975 leaving behind his two sons, two daughters and legal heirs of late Smt. Saraswati.

4. After the death of Dewan Niranjan Prasad, a dispute arose between his sons and daughters- namely Smt. Rajlakshmi, Smt. Nirmala and legal heirs of Smt. Saraswati regarding the rear part of the compound of the ancestral kothi called “Nishkam”. Parties to the dispute by mutual consent and by an Arbitration Agreement dated 27.10.1978 referred the dispute to the sole Arbitrator, Dewan Ram Kishan Khosla, Sr. Advocate.

5. It appears that on 22.1.1977, the respondents fraudu¬lently managed to get the mutation of the portion of the property in question recorded in the revenue records in their favour show¬ing Dewan Niranjan Prasad, who had expired on 15.1.1975 and Smt. Saraswati, who had expired in 1966, as present and witnessing the said mutation.

6. The Arbitrator examined the contentious issues presented, from both sides and after threadbare discussion deliv¬ered his award on 10.7.1979. The Arbitrator in his award found inter alia that the gift in question in favour of daughters was revoked and the plots were resumed by late Dewan Niranjan Prasad with the consent of the two daughters and Sh. B.S. Talwani- husband of Smt. Saraswati in lieu of cash payment received by them. The Arbitrator also found that the mutation in favour of the respondents was obtained by fraudulent means and therefore, non est.

7. On 1.8.1979, S/Sh, K.J. Khosla and N. Khosla, the two sons of Dewan Niranjan Prasad filed an application under Section 14 of the Arbitration Act, 1940 for making the award a Rule of the Court. It appears that on 24.5.1981, notice of the applica¬tion was issued to the respondents who filed objections contend¬ing inter alia that the award dated 10.7.1979 created, declared, assigned, limited or extinguished right, title and interest of the value of Rs.100 and upwards to, or in immovable property and, therefore, the award was com

























































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