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2000 Supreme(P&H) 1589

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VIRINDER AGGARWAL, J.
Hansa Singh (Since Deceased) through LRs. – Appellant
Versus
Sandeep Kumar – Respondent
RSA No. 3794 of 2000
Decided On : 08-04-2026

Advocates Appeared:
For the Appellant : Mehar Singh Rai
For the Respondent: Sandeep Jasuja

Admitted signatures on a document create a strong presumption of valid execution. A plea of fraud or forgery requires specific material particulars and evidence; bald assertions, especially those factually inconsistent with the document's timeline, are insufficient to rebut the presumption of execution.

Headnote:(A) Code of Civil Procedure, 1908 - Order VI Rule 4 - Pleadings of fraud or misrepresentation - Must contain material particulars - A bald assertion of fraud without corroborative evidence is insufficient to rebut the presumption of execution arising from admitted signatures. (Paras 11.1, 14.2)

(B) Appeal - Scope and ambit - Second appeal - Appellate court not to interfere with findings of fact unless perverse or suffering from jurisdictional error - Where the lower appellate court has correctly appreciated evidence and the appellant fails to demonstrate perversity, the judgment is to be affirmed. (Paras 9, 14.2)

Facts of the case:
The respondent-plaintiff sought recovery of earnest money paid under an agreement to sell. The appellant-defendant denied the execution of the agreement, claiming that his signatures were obtained on blank papers during prior business dealings. The trial court initially dismissed the suit, but the first appellate court reversed this decision, finding the defendant's explanation regarding the blank papers factually impossible due to the date of the document.

Findings of Court:
The court found that the defendant admitted his signatures on the document. The explanation that these were obtained on blank papers during a period when business relations had already ceased was found to be untenable. The allegation of fraud lacked material particulars and evidence, failing to meet the requirements for pleading fraud.

Issues: The main issues were whether the agreement to sell was a forged document and whether the plaintiff was entitled to the recovery of the earnest money based on the evidence presented.

Ratio Decidendi: Once the execution of a document is admitted through signatures, the burden shifts to the party alleging fraud to prove it with specific evidence. A plea of fraud cannot be sustained on bald assertions, especially when the explanation for the signatures is factually inconsistent with the timeline of the document.

Result: Appeal dismissed.

Table of Content
1. procedural history and factual background of the dispute. (Para 1 , 2 , 4 , 5)
2. contentions regarding forgery vs. genuine execution of agreement. (Para 3 , 6 , 7)
3. appellate scrutiny of evidentiary findings and witness credibility. (Para 8 , 9 , 10 , 11 , 12)
4. failure to satisfy pleading requirements and burden of proof. (Para 13 , 14)
5. final appellate dismissal based on lack of merit. (Para 15)

JUDGMENT :

VIRINDER AGGARWAL, J.

1. The present Regular Second Appeal (hereinafter to be referred as “RSA”) is directed against the judgment and decree dated 07.08.2000 rendered by the learned Additional District Judge, Ferozepur, whereby the appeal preferred by the respondent-plaintiff was accepted. Consequently, the judgment of the trial court dated 20.02.1998, which had initially dismissed the suit, was set aside, and the suit for recovery was decreed in favour of the respondent-plaintiff.

2. The respondent–plaintiff instituted the present suit for recovery of Rs. 80,000/- on the basis of an Agreement to Sell dated 24.07.1993 (Ex. P2), alleging that the appellant–defendant agreed to sell land measuring 9 kanals 12 marlas for a total consideration of Rs. 80,000/- out of which Rs. 66,000/- was paid as earnest money. The sale deed was stipulated to be executed on 25.07.1994. It was further pleaded that the plaintiff remained ready and willing to perform his part of the contract, as evidenced by his appearance before the Sub-Registrar on the stipulated date (Ex. P1). However, as the defendant allegedly lacked clear title to the entire suit land and failed to execute the sale deed, the plaintiff sought refund of the earnest money along with 14,000/- as damages.

3. The defendant, upon service of notice, contested the suit by filing a detailed written statement raising preliminary objections as to maintainability. On merits, the execution of the agreement and receipt of earnest money were specifically denied. It was pleaded that the defendant, an agriculturist, had been transacting through the plaintiff’s commission agency for over a decade and, in the course of such dealings, his signatures were obtained on blank papers as per prevailing trade practice. It was further alleged that the plaintiff misused such blank signed papers to fabricate a forged agreement after cessation of business relations, as an act of retaliation.

3.1 Upon consideration of the pleadings and rival submissions, the learned Trial Court framed the following issues on 28.05.1997 for adjudication.

1. Whether the defendant entered into an agreement to sell dated 24.07.1993 in respect of land measuring 9 kanals 12 marlas and received a sum of Rs.66,000/- as earnest money, although he was not the owner of the said land, as alleged? OPP

2. Whether the alleged agreement to sell dated 24.07.1993 is a fabricated, false and forged document, as alleged? If so, its effect? OPD

3. Whether the suit is not maintainable in the present form? OPD

4. Whether the plaintiff has not come to the Court with clean hands? If so, its effect? OPD

5. Whether the plaintiff is entitled to recovery of the suit amount, as alleged? OPP

6. Whether the plaintiff is entitled to interest? If so, at what rate and to what amount? OPP

7. Relief.

4. Both parties were afforded a full and fair opportunity to adduce evidence in support of their respective claims. Upon conclusion of the trial and after hearing learned counsel for both sides, the learned Trial Court dismissed the suit. Aggrieved thereby, the plaintiff/appellant preferred an appeal before the learned First Appellate Court, which was allowed.

5. Assailing the findings of the learned First Appellate Court, the appellant/respondent has instituted the present appeal. Upon admission, notice was duly issued, and the respondents entered appearance through counsel and contested the appeal. The records of the courts below are available on DMS for perusal and proper adjudication.

6. Learned counsel for the appellant submits that the appellant– defenda

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