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2022 Supreme(Ori) 745

IN THE HIGH COURT OF ORISSA
D. Dash, J.
Sarojini Senapati and Ors. - Appellant
Vs. 
Surendra Pradhan and Ors. - Respondent
RSA No. 247 of 2008
Decided On: 20-06-2022

Advocate Appeared:
For the Appellant :S.P. Mishra, Sr. Advocate, S. Mishra, S. Nanda, A. Dash, B. Mohanty, S.K. Mohanty and S.K. Sahoo, Advocates
For the Respondents:Balaram Ojha and A.B. Lenka, Advocates

Burden of proof lies on those asserting validity of a transaction involving vulnerable parties; fraud undermines any purported execution of such deeds.

Headnote:(A) Code of Civil Procedure, 1908 - Section 100 - Appeals - Legality of registered sale deed in fraud - First Appellate Court reversed Trial Court's decree regarding fraudulent sale deed executed by a deceased in a state of ill health, despite no clear evidence of due execution by the Defendant. (Paras 1, 8, 12)

(B) Burden of proof - The burden lies on the party seeking to sustain a deed to prove due execution and understanding by the executant; the court emphasizes protection against exploitation of vulnerable individuals. (Paras 10-11)

(C) Fraud - Sale deed declared null and void as it was obtained under circumstances of deceit and without the informant's informed consent. (Paras 12)

Facts of the case:
The Appellants are the daughters of Duryodhan, who executed a sale deed under fraudulent pretenses just before his death. Defendant claimed valid ownership based on said deed, contested by the Plaintiffs who alleged it was acquired through deceit.

Findings of Court:
The Trial Court found the deed invalid due to fraud. The First Appellate Court incorrectly reversed this.

Issues: Whether the burden of proof lay on the Plaintiff to demonstrate fraud or if the Defendant had to prove valid execution of the deed.

Ratio Decidendi: The appellate court failed to recognize that the burden of proof rests with those asserting surreptitious gains from potentially invalid transactions. The deed was deemed null and void, rendering subsequent transactions also invalid.

Result: Appeal allowed, sale deed declared null and void.

Table of Content
1. appeal under code of civil procedure. (Para 1 , 2)
2. factual background of land ownership and alleged fraud. (Para 3)
3. defendant's defense claim against fraud allegations. (Para 4 , 6)
4. court's scrutiny of sale deed and fraud. (Para 5 , 10 , 12)
5. burden of proof lies with the party seeking to sustain the deed. (Para 7 , 11)
6. appellant's argument on the trial court's finding. (Para 8)
7. respondents did not appear in court. (Para 9)
8. conclusion and order in favor of appellants. (Para 13)
JUDGMENT :
D. Dash, J.

1. The Appellants, by filing this Appeal, under Section-100 of the Code of Civil Procedure, 1908 (for short 'the Code') have assailed the judgment and decree passed by the learned District Judge, Cuttack in RFA No. 44 of 2007.

By the same, the Appeal filed by the Respondent Nos. 1 to 4 under section 96 of the Code has been allowed whereby the judgment and decree passed by the learned Civil Judge (Jr. Division), Salipur in Title Suit No. 37 of 1984 decreeing the suit filed by these Appellants as the Plaintiffs have been set aside and thereby these Appellants (Plaintiffs) have been non-suited.

2. For the sake of convenience, in order to avoid confusion and bring in clarity, the parties hereinafter have been referred to, as they have been arraigned in the Trial Court.

3. One Udhaba Pradhan was the original owner of the suit land described in the schedule given in the plaint. He died leaving behind his two sons, namely, Golakha and Duryodhan. Sometime after the death of Udhaba, his two sons Golakha and Duryodhan amicably partitioned their ancestral properties and began to reside under separate mess and estate having exclusive possession of land falling to their respective shares. It is stated that the suit property failed to the share of Duryodhan in the said amicable partition and he was in exclusive and peaceful possession and enjoyment of the same till his death. On 15.03.1981, Duryodhan died leaving behind these three Plaintiffs-daughters. It is stated that Duryodhan prior to his death was seriously ailing and on account of such illness, Duryodhan requested the Defendant No. 1 to look after the matter relating to his properties in the Consolidation Proceeding, which were then going on. Defendant No. 1 by taking advantage of the same and abusing the faith and confidence reposed by Duryodhan on him, who happens to be in agnatic relationship is said to have played fraud on him and managed to obtain the sale deed fraudulently in his favour in respect of the entire suit property by giving an impression to Duryodhan that he was executing a deed of power of attorney in his favour for the purpose of looking after his properties on his behalf. Just four days after the execution of said sale deed, Duryodhan died. It is also stated that the Defendant No. 1 for the purpose of obtaining the sale deed had not only got the deed scribed by his own person but also managed to obtain the thumb impressions of Duryodhan on the same without explaining him the contents. The sale deed was registered when the local Sub-Registrar visited the house of Duryodhan on 11.03.1981 upon acceptance of the request made for the purpose of said visit. It is further stated that there was no payment of consideration for the transaction and Duryodhan had never sold the suit land to Defendant No. 1. Immediately after obtaining the said fraudulent deed, the Defendant No. 1 started disposing of the properties in different parts to different persons. The Plaintiffs, who was the daughters of Duryodhan, having come to know about all these clandestine activities of Defendant No. 1 filed the suit.

4. The Defendant No. 1 contested the suit by fling written statement. It is stated that Duryodhan's brother Golokha has already alienated his shares in the ancestral properties to him by registered sale deed dated 25.05.1977. Duryodhan also said to have duly executed the sale deed on his own having fully understood the contents of the same and having put his LT


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