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2024 Supreme(Ori) 289

IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K.PANIGRAHI, J.
Lingaraj Tripathy - Petitioner
Versus
Debaraj Tripathy and Others - Opposite Partys
W.P.(C) No. 7437 of 2019
Decided On : 24-09-2024

Advocates:
Advocate Appeared:
For the Petitioners: Mr. D. P. Mohanty, Adv.
For the Opposite Partys : Mr. Samir Kumar Mishra, Sr. Adv. Along with Ms. P. Mohanty, Adv.

Exclusion of necessary parties in settlement proceedings undermines legal rights, necessitating their inclusion to ensure just outcomes in family property disputes.

Headnote:(A) Constitution of India - Article 226 - Writ petition for annulment of Lok Adalat award - Petitioner alleges exclusion from proceedings prejudicial to his rights in joint family property - Court held that exclusion of necessary parties from settlement proceedings compromises legal rights. (Paras 5, 6, 8, 10)

(B) Family Property Law - Exclusion from settlement - Need for all stakeholders to be heard in property disputes - Acknowledgment of rights in ancestral property is paramount. (Paras 8, 9)

Facts of the case:
Petitioner claims his deliberate exclusion from Lok Adalat proceedings affects his share in property bought by father, and alleges the compromise was rushed to exclude him. The family consists of Bhagabat Prasad Tripathy with four sons, including the petitioner. The property under dispute was acquired through sales of gifts.

Findings of Court:
Award by Lok Adalat set aside, matter remitted for reconsideration ensuring petitioner’s involvement to protect his rights.

Issues: Whether Lok Adalat could lawfully proceed with settlement excluding a necessary party.

Ratio Decidendi: The court found that exclusions of necessary parties from proceedings violate rights and that such judgments should include all stakeholders to avoid unjust outcomes.

Result: Writ petition allowed, award annulled, case remitted for reevaluation.

Table of Content
1. misrepresentation and exclusion in lok adalat proceedings. (Para 1 , 2 , 8)
2. petitioner's arguments against the award's legality. (Para 4)
3. court's obligation to ensure all parties are heard. (Para 5 , 6 , 7 , 9)
4. setting aside the lok adalat award for reconsideration. (Para 10)
5. final order regarding the interim order. (Para 11)

JUDGMENT :

S.K.PANIGRAHI, J.

1. In this Writ Petition, the Petitioner seeks annulment of the proceedings before the Permanent and Continuous Lok Adalat, Kendrapara contending that his intentional exclusion was designed to deprive him of his rightful share in the property.

I. FACTUAL MATRIX OF THE CASE

2. The brief facts of the case are as follows:

(i) The dispute involves the family of Bhagabat Prasad Tripathy, who has four sons: Lingaraj (the petitioner), Debaraj (Opposite Party No. 1), Brajaraj (Opposite Party No. 3), and Prithviraj (Opposite Party No. 4).

(ii) The property in question is located in Jaipur, Kendrapara, under Khata No. 333 with Plot Nos. 1013, 1014, and 1189/2196, covering an area of 0.44 acres. This property was purchased by Bhagabat Prasad on 02.07.1988.

(iii) Proceedings were initiated before the Permanent and Continuous Lok Adalat, Kendrapara, on 24.12.2018, and the matter was settled swiftly on 19.01.2019 through a compromise between the plaintiff and the defendants.

(iv) In the proceedings before the Permanent Lok Adalat, Opposite Party No. 1, Debaraj, was the plaintiff, while Opposite Party Nos. 2 (Bhagabat Prasad), 3 (Brajaraj), and 4 (Prithviraj) were named as defendants.

(v) The petitioner, Lingaraj, who is also a son of Bhagabat Prasad, was not included as a party in the Lok Adalat proceedings. He claims that the compromise and award prejudicially affected his rights because he was deliberately excluded from the settlement.

(vi) The disputed property, purchased by Bhagabat Prasad, consists of both homestead land and a residential building that has been used by the joint family.

(vii) During the Lok Adalat case, it was argued that Bhagabat Prasad purchased the property by selling gold ornaments gifted during the birth ceremonies of Debaraj, Brajaraj, and Prithviraj.

(viii) Aggrieved by the Lok Adalat’s award, the petitioner has filed this writ petition seeking its annulment, arguing that his deliberate exclusion from the proceedings was intended to deprive him of his rightful share in the property.

II. SUBMISSIONS ON BEHALF OF THE PETITIONER

3. Learned counsel for the Petitioner earnestly made the following submissions in support of his contentions:

(i) The petitioner submitted that the property in question is joint family property, acquired for the benefit of the entire family. His exclusion from the settlement violated his rights as one of the sons of Bhagabat Prasad.

(ii) He further submitted that the Lok Adalat proceeding deliberately excluded him and suppressed facts about his existence and legal rights in the property.

(iii) The petitioner contended that the case was rushed through the Lok Adalat within 25 days, which suggests a deliberate attempt by the plaintiff and the other defendants to finalize the settlement without his knowledge.

(iv) He further contended that his father, Bhagabat Prasad who was 76 years old at the time of the proceedings, was misled by Debaraj, Brajaraj, and Prithviraj into consenting to the compromise.

III. SUBMISSIONS ON BEHALF OF THE OPPOSITE PARTIES:

4. The Learned Counsel for the Opposite Parties earnestly made the following submissions in support of his contentions:

(i) It is submitted that the petitioner has no Locus Standi to challenge the Lok Adalat’s award because the property belongs solely to Opposite Party No. 1. As the lawful owner, Opposite Party No. 1 has the right to enter into a settlement and part with his property as he deems fit.

(ii) It is further submitted that the property was acquired by Opposite Party No. 1 through a registered sale deed. Therefore, the petitioner cannot claim rights over this self-acquired property.

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