PUNJAB & HARYANA HIGH COURT
V.K.Jhanji, J.
Karnail Singh
Versus
Dalip Kaur
Regular Second Appeal No. 961 of 1995,
Decided On : MAY 26, 1995
COMPROMISE DECREE - FRAUD - SETTING ASIDE - JURISDICTION - CIVIL PROCEDURE CODE, 1908 - ORDER 23 RULE 3-A - HINDU SUCCESSION ACT, 1956 - SECTION 14(1) - SALE-DEED - CONSIDERATION - PROOF - BURDEN OF PROOF.
Fact of the Case:
Gurdial Kaur and Dalip Kaur were involved in a property dispute over the land left by Pala Singh, their deceased husband and father, respectively. In 1964, a compromise decree was passed, giving Gurdial Kaur possession of 72 kanals of land for her lifetime, with the remaining 231 kanals 1 marla going to Dalip Kaur. In 1983, Gurdial Kaur filed a suit claiming ownership of the entire property. On March 10, 1986, a compromise was reached in court, with Gurdial Kaur getting exclusive ownership of the 72 kanals and giving up her claim to the 231 kanals 1 marla. On March 20, 1986, Gurdial Kaur sold the 72 kanals to the appellants for Rs. 1,80,000/-. Gurdial Kaur died five days later. Dalip Kaur challenged the compromise decree on the ground of fraud, and the first appellate court set aside the decree and sale-deed. The appellants appealed to the High Court.
Finding of the Court:
The High Court found that the compromise decree was obtained by practicing fraud. The court noted that the compromise was reached in undue haste, without waiting for the date fixed for hearing of the suit, and that Dalip Kaur was not given a proper opportunity to understand the implications of the compromise. The court also found that the sale-deed in favor of the appellants was without consideration, as the appellants failed to prove that they had paid the alleged purchase price.
Issues: 1. Whether the compromise decree was obtained by practicing fraud? 2. Whether the sale-deed in favor of the appellants was supported by consideration?
Ratio Decidendi: 1. A compromise decree can be set aside in a subsequent suit on the ground of fraud. 2. The burden of proving that a sale-deed is supported by consideration lies on the party claiming under the sale-deed.
Final Decision: The High Court dismissed the appeal, upholding the decision of the first appellate court to set aside the compromise decree and sale-deed.
V.K.Jhanji, J.
1. This is defendants second appeal.
One Pala Singh son of Waryam Singh had two wives, Gurdial Kaur and Kishan Kaur. Dalip Kaur plaintiff (respondent No. 1 herein) is daughter of Pala Singh from his second wife, Kishan Kaur. Pala Singh was owner of land measuring 72 kanals and Anr. parcel of land measuring 231 kanals 1 marla situated in village Daudhar, Tehsil Moga, District Faridkot. It is alleged that by Will dated 8.4.1963 Pala Singh bequeathed his property in favour of Dalip Kaur but with the condition that his first wife, Gurdial Kaur, would enjoy the produce of the estate during her life time. After the death of Pala Singh, Gurdial Kaur filed suit against Dalip Kaur for declaration to the effect that she is owner in possession of land measuring 72 kanals i.e. land in dispute and also half share in land measuring 231 kanals 1 marla. In the said suit, at the intervention of respectable as well as members of the Panchayat, the parties entered into a compromise. As a result of compromise, decree for possession of land measuring 72 kanals was passed in favour of Grudial Kaur but with the condition that she would not be entitled to transfer the land in any manner during her life time. The remaining land i.e. 231 kanals 1 marla was to remain under the ownership of Dalip Kaur. It was also provided under the compromise that after the death of Grudial Kaur, the entire property left by Pala Singh would come to Dalip Kaur pursuant to passing of decree on 26.2.1964, mutation No. 869 dated 30.8.1965 was duly entered in the revised record. Entry with regard to compromise and the limited rights of Gurdial Kaur was repeated in the revenue record from the day the mutation was sanctioned. On 11.3.1983 Gurdial Kaur filed suit No. 206-T for declaration to the effect that she is owner in possession of the whole of land measuring 72 kanals and also half share in land measuring 231 kanals 1 marla. On 16.3.1985, Dalip Kaur filed suit for restraining Gurdial Kaur from alienating land measuring 72 kanals. In the suit filed by Gurdial Kaur, the statements of two witnesses were recorded and the said suit was adjourned on 4.3.1986 to 22.3.1986. On 10.3.1986, an application was made for taking up the suit on the ground that the party have entered into compromise. The compromise promised before the Court appeared to have been, signed by the parties as well as their counsel. Under the compromise, Gurdial Kaur was to become exclusive owner of land measuring 72 kanals and was to give her claim to land measuring 231 kanals 1 marla. Trial Judge recorded the statement of Dalip Kaur got her thumb-impression affixed thereon. On the same very day, decree in terms of compromise was passed. On 12.3.1986, Dalip Kaurs counsel namely Harpal Singh made a statement in the suit filed by Dalip Kaur that the same be dismissed as withdrawn. Acting on the statement of counsel, suit of Dalip Kaur was dismissed as withdrawn. On 20.3.1986, Gurdial Kaur sold the land in dispute measuring 72 kanals in favour of the appellants for a total consideration of Rs. 1,80,000/- vide registered sale-deed. A sum of Rs. one lac is alleged to have been paid before the Sub Registrar and the remaining sum of Rs. 80,000/- on 3.1.1984 when agreement to sell was allegedly executed between Gurdial Kaur and the appellants. Five days thereafter i.e. on 25.3.1986 Gurdial Kaur died of throat cancer. Against the compromise decree dated 10.3.1986, Dalip Kaur filed an appeal on 2.4.1986 before the Additional District Judge in which she challenged the decree, on the ground of fraud. Since Gurdial Kaur had died, she (Dalip Kaur) impleaded the appellants as respondents being the legal representatives of Gurdial Kaur, deceased. When the appeal was pending, Dalip Kaur on 15.4.1987 filed suit for possession out of which present appeal has arisen claiming possession of land measuring 72 kanals on the ground that the compromise decree dated 10.3.1986 is not binding on her as the same has
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