2010 Supreme(P&H) 1806
PUNJAB & HARYANA HIGH COURT
L.N.Mittal, J.
Bimla Devi Alias Buri
Versus
Laxmi Narain
Regular Second Appeal No. 2191 of 2010,
Decided On : MAY 27, 2010
The necessity of proving fraud or coercion with precision and the importance of recording statements to ensure the genuineness of admissions.
Headnote:
Fraud - Property Dispute - A.I.R. 1971 S.C. 1041, A.I.R. 1976 S.C. 807, J.T. 2010(4) S.C. 196 - The court discussed the validity of a consent decree obtained by fraud and misrepresentation, citing relevant case law. It emphasized the necessity of proving fraud or coercion with precision and highlighted the importance of recording statements to ensure the genuineness of admissions. The court upheld the lower courts' findings of fraud based on evidence, concluding that the appeal lacked merit.
Fact of the Case:
The plaintiffs alleged that the defendant fraudulently obtained a consent decree regarding their share of land, which was based on a family settlement. The defendant contended that the decree was voluntarily suffered on the basis of a family settlement.
Finding of the Court:
The court found that the consent decree was obtained by fraud and misrepresentation, supported by evidence such as forged thumb impressions and lack of verification of written statements. It upheld the lower courts' findings of fraud and dismissed the appeal.
Issues: Validity of consent decree, Allegations of fraud and misrepresentation, Family settlement
Ratio Decidendi: The necessity of proving fraud or coercion with precision, Importance of recording statements to ensure genuineness of admissions, Upholding lower courts' findings of fact
Final Decision: The appeal lacked merit and was dismissed in limine.
L.N.Mittal, J.
1. This is second appeal by Bimla Devi legal representative of original defendant Badri Parshad having remained unsuccessful in both the courts below.
2. Respondents filed suit against Badri Parshad alleging that plaintiffs are owners in possession of l/3rd share of land measuring 38 kanals 4 marlas. The defendant who was first cousin of the plaintiffs was Lambardar of the village whereas plaintiffs are illiterate and rustic villagers. The plaintiffs reposed faith in the defendant. In September or October, 1988 the defendant brought the plaintiffs to court complex for execution of some documents for taking loan from bank. Defendant was to take the loan by mortgaging land with bank. At the instance of defendant, plaintiffs signed some papers being cosharers in the land for getting loan sanctioned. However, fraudulently the signed papers were converted into proceedings of a suit resulting in passing of consent decree dated 15.10.1988 regarding share of the plaintiffs in the suit land in favour of defendant. The plaintiffs have challenged the said decree in the suit seeking declaration that they are joint owners in possession of the suit land to the extent of l/3rd share.
3. The defendant controverted the allegations of the plaintiffs and pleaded that the plaintiffs who were defendants in the previous suit voluntarily suffered consent decree dated 15.10.1988 by filing written statement admitting the claim of the defendant who was plaintiff in the previous suit. The said decree was voluntarily suffered on the basis of family settlement.
4. Learned Additional Civil Judge, (Senior Division), Mohindergarh vide judgment and decree dated 25.7.2006 decreed the plaintiffs suit. First appeal preferred by the defendant has been dismissed by learned Additional District Judge, Narnaul vide judgment and decree dated 29.3.2010. Feeling aggrieved, legal representative of defendant has preferred the instant second appeal.
5. I have heard learned counsel for the appellant and perused the case file.
6. Learned counsel for the appellant vehemently contended that the defendant was first cousin of the plaintiffs and therefore, there could be a valid family settlement between the parties and consequently, consent decree dated 15.10.1988 based on family settlement is not vitiated. Reliance in support of this contention has been placed on two judgments i.e. Krishna Beharilal (Dead) by his legal representatives v. Gulabchand and others,1 A.I.R. 1971 S.C. 1041 and Bale and others v. Deputy Director of Consolidation and others,2 A.I.R. 1976 S.C. 807. However, this contention even if accepted for the sake of arguments would not come to the rescue of the appellant because the consent decree dated 15.10.1988 has been found to have been obtained by fraud and misrepresentation
7. Learned counsel for the appellant also relied on a judgment of Honble Supreme Court in the case of Shanti Budhiya Vesta Patel and others v. Nirmala Jayprakash Tiwari and others J.T. 2010(4) S.C. 196. In that case, there was some development agreement between developer and owner of the property. It was observed that in order to make out a case of fraud or coercion, there must be an express allegation of coercion or fraud and all the material facts in support of such allegations must be laid out in full and with a high degree of precision. In the instant case, the plaintiffs have pleaded the necessary facts regarding their plea of fraud in the passing of consent decree dated 15.10.1988. The plaintiffs have also substantiated their said claim. 8. It has to be noticed that as a matter of practice when consent decree is passed on the basis of written statement filed by defendant admitting claim of the plaintiff, normally statement of the defendant is also recorded by the court to make sure that the admission of claim of plaintiff by defendant is genuine. In the instant case, however, statement of plaintiffs, who were defendants in the previous suit along with sisters