IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. SAM KOSHY, N. TUKARAMJI, JJ.
Smt. B. Lavanya alias B.Shoba and others – Appellants
Versus
The State of Telangana and Others – Respondent
Writ Petition No.2906 of 2021
Decided on : 16-12-2023
Fraud - Property Dispute - 1976 Land Purchase - O.S.No. 814 of 2018 - Award dated 13.07.2019 - [Sections 226/227 of the Constitution of India, State of Punjab v. Jolour Singh, Saleem Ahmed v. Tata, Ram Chandra Singh v. Savitri Devi, S.P. Chengalvaraya Naidu v. Jagannath] - The court allowed the writ petition, setting aside the Award dated 13.07.2019 and quashing the entries made by the Sub-Registrar and Deputy Commissioner, GHMC. The respondents were directed to make necessary consequential entries in the relevant registers and pay compensation to the petitioners and other respondents.
Fact of the Case:
The petitioners sought to set aside an Award obtained by fraud in a property dispute. The respondents obtained the Award in a suit for partition and separate possession of a property, despite the pendency of a similar suit filed by the petitioners.
Finding of the Court:
The court found that the respondents had played fraud by obtaining the Award behind the petitioners' back and suppressing the true facts of the pending suit. The court held that the petitioners had established deceptive acts, justifying interference.
Issues: Fraud in obtaining the Award, suppression of facts, abuse of process of law.
Ratio Decidendi: Fraud vitiates every solemn act. The court emphasized that fraud and justice cannot coexist, and deliberate deception to gain unfair advantage is unacceptable. The court also highlighted that collusion or conspiracy to deprive others of their rights renders the transaction void ab initio.
Final Decision: The court allowed the writ petition, setting aside the Award and quashing the entries made by the Sub-Registrar and Deputy Commissioner, GHMC. The respondents were directed to make necessary consequential entries in the relevant registers and pay compensation to the petitioners and other respondents.
ORDER :
N. TUKARAMJI, J.
This writ petition has been filed with a prayer to set aside/quash the Award dated 13.07.2019 passed by the Lok Adalat, City Civil Court Legal Services Authority, Hyderabad in O.S.No. 814 of 2018 on the file of the XVI Additional Chief Judge, City Civil Court, Hyderabad on the ground that the Award has been obtained by playing fraud. Consequently to declare the registration of the Award by the Sub-Registrar, Doodbouli,Hyderabad/respondent No.6 and the mutation of the names effected by the Deputy Commissioner, Greater Hyderabad Municipal Corporation (GHMC), Falakhnama Zone/respondent No.7, as null and void.
2. We have heard Mr. Mayur Mundra, learned counsel for the petitioners, Mr. Pasham Krishna Reddy, learned counsel for respondent Nos.4 and 7 and Mr.Shashikiran Pusluri, learned Standing Counsel for Telangana State Legal Services Authority/respondent No.5. Mr. C. Suresh Shiv Sagar, learned counsel though filed counter, at hearing informed that, he had given up vakalat for the respondent No.8.
3.1 The facts leading to this writ petition are that in 1976 one K. Mallappa purchased landed property admeasuring 23162 square yards with Municipal No.19-4-14/1 in Sy.Nos.218, 219, 221, 232, and 233 (for short, ‘the subject property’). He died leaving behind his two sons and five daughters.
3.2 The writ petitioners (hereinafter ‘the petitioners’) are the three daughters and the father of respondent Nos.8 and 9/husband of respondent No.10 was the eldest son of K. Mallappa.
3.3 The petitioners by pleading that their father died intestate, in 2014 instituted a suit vide O.S.No.807 of 2014 on the file of the IX Additional Chief Judge, City Civil Court, Hyderabad for partition and separate possession of the subject property wherein the predecessors-in-interest of the respondent Nos.8 to 10 was arrayed as the defendant No.1. In the written statement, the defendant No.1 had propounded that their father died testate bequeathing the subject land to him under the Will dated 01.08.1982 and he had executed settlement deeds in favour of his sons. However, after the demise of defendant No.1, his sons and wife/respondent Nos.8 to 10 were impleaded in the suit as defendant Nos.5, 7 and 6 respectively. Notably, in the suit vide Order dated 26.09.2014 in I.A.No.1379 of 2014 an ex parte status quo order was granted and the same was in force till 26.11.2020.
3.4 While so, the respondent No.10 by proposing the Wills of M. Mallappa and her husband filed another suit vide O.S.No.814 of 2018 against her sons/respondent Nos.8 and 9 on the file of the XVI Additional Chief Judge, City Civil Court, Hyderabad seeking partition and separate possession of the subject property.
3.5 Later the parties got referred the suit O.S.No.814 of 2018 to the Lok Adalat for settlement and the impugned Award was passed on 13.07.2019 distributing the subject property among the respondent Nos.8 to 10. On its strength the respondent Nos.8 to 10 got registered the Award before the Sub-Registrar, Doodbowli, Hyderabad/respondent No.6 and got mutated their names in the revenue records maintained by the Deputy Commissioner, GHMC/respondent No.7. Aggrieved thereby the plaintiffs in O.s.No.807 of 2014 has preferred this writ petition for quashment/setting aside the impugned Award.
4.1 Learned counsel for the petitioners would submit that the respondent Nos.8 to 10 though they are the defendants 5 and 6 in the suit filed by the petitioners, without making the petitioners and other co-parceners as parties, the respondent No.10 filed suit for partition against her sons/respondent Nos.8 and 9 by asserting an unregistered Wills of her father-inlaw/grandfather of respondent Nos.8 and 9 and also her husband/father of respondent Nos.8 and 9. Thereafter collusively got recorded the Award before the Lok Adalat in the guise of compromise and got divided the subject property among themselves. He further contended that the husband of respondent No.10 as defendant No.1 in O.S.No.807 of 201
Bhargavi Constructions & Anr. vs. Kothakapu Muthyam Reddy & Ors - (2018) 13 SCC 480
Ram Chandra Singh v. Savitri Devi and others – 2003(8) SCC 319
State of Punjab and another v. Jolour Singh –(2008) 2 SCC 660
The Lok-Adalat can settle disputes not included in pending suits, and non-registration of an award does not invalidate it.
Awards passed by Lok Adalat can be challenged in writ jurisdiction where fraud is alleged, despite limitations on appeals.
Point of Law : Challenge to the award of Lok Adalat can be done only by filing a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court and that too on very....
Claims of fraud must be substantiated with evidence to invalidate Lok Adalat settlements, which are generally recognized as valid unless proven otherwise.
The absence of the complainant's consent in a Lok Adalat compromise invalidates the award, as statutory requirements for notice and participation are fundamental to upholding justice and preventing f....
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