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2026 Supreme(Online)(Raj) 13513

HIGH COURT OF RAJASTHAN (JAIPUR BENCH)
Ganesh Ram Meena, J
Jyoti Sejwani – Appellant
Versus
Rajasthan Housing Board – Respondent
S.B. Civil Writ Petition No. 336/2019 | S.B. Civil Writ Petition No. 13563/2019 | S.B. Civil Writ Petition No. 15576/2019 | S.B. Civil Writ Petition No. 16978/2019



Advocates:
For the Appellants/Petitioners: M.M. Ranjan, Naman Pareek, Ashish Sharma, R.N. Mathur, Shovit Jhajhariya, Mohammad Alam, A.K. Sharma, Dinesh Yadav, Ankit Yadav, Anand Sharma
For the Respondents: Utkarsh Dubey, Abhishek Mewara, J.K. Moolchandani, Hariom Yadav, S. Kaushal, Neeraj Batra, Ram Kumar Sharma, Virendra Lodha, Jai Lodha, Darsh Pareek

Fraud and misrepresentation vitiate all judicial and administrative orders, rendering them void, even if they have attained finality. Furthermore, an agreement to sell does not convey title to immovable property under the Transfer of Property Act; only a registered sale deed can legally transfer ownership.

Headnote:(A) Land Acquisition Act, 1894 - Section 4, 6, 9 - Rajasthan Urban Improvement Act, 1959 - Section 52 - Code of Civil Procedure, 1908 - Section 80 - Transfer of Property Act, 1882 - Section 54 - Fraud and Misrepresentation - Vitiation of court orders - An order or judgment obtained by playing fraud or misrepresentation is non-est and can be declared ineffective even if it has attained finality at the highest judicial level. Fraud vitiates all solemn acts and administrative or judicial orders procured through deception. (Paras 14, 16, 18, 20)

(B) Specific Relief and Property Title - Transfer of immovable property - Agreement to sell - An agreement to sell does not, of itself, create any interest in or charge on the property under Section 54 of the Transfer of Property Act. A valid conveyance can only be made through a registered sale deed. Without such a deed, no title is transferred and no proprietary rights are conferred by an agreement to sell. (Paras 32, 33)

(C) Non-joinder of parties - Judicial proceedings - Failure to implead necessary parties in a litigation, while suppressing material facts to obtain favorable orders, constitutes fraud on the court. Such conduct renders the resulting judgment voidable and liable to be set aside. (Paras 28, 30)

Facts of the case:
Public authorities initiated land acquisition proceedings for a residential housing project. Challenges were filed against the acquisition. During the process, a housing society claimed it had purchased the land via agreements to sell and attempted to regularize its colony scheme. Following an earlier round of litigation where the court directed the approval of the scheme and issuance of land titles, the authority later discovered that no such scheme existed and that the previous court orders were obtained by suppressing facts and withholding the identify of necessary parties. Subsequent inquiries confirmed the absence of any valid scheme existence or documentary evidence of land transfer pre-acquisition.

Findings of Court:
The court found that the petitioners in the earlier litigation suppressed material facts, including the status of the land as acquired property. The inquiry reports corroborated that the residential scheme in question was never floated prior to the land acquisition. The court held that the judgment relied upon by the petitioners was obtained through fraud and, therefore, was non-enforceable.

Issues: Whether a judgment obtained by fraud or misrepresentation remains valid after attaining finality; and whether an agreement to sell confers valid title to the property without a registered sale deed.

Ratio Decidendi: Fraud and collusion vitiate the most solemn proceedings. When a party obtains an order by deceiving the court or suppressing material facts, that order is a nullity. Furthermore, as per settled law on the Transfer of Property Act, an agreement to sell is not a conveyance and does not confer title; it only provides a right to specific performance.

Result: Petitions filed by private parties and the housing society are dismissed. The petition filed by the public authority is allowed; acquisition proceedings stand concluded and the previous order secured by fraud is declared ineffective.

Table of Content
1. factual history of land acquisition proceedings and subsequent housing scheme disputes. (Para 1 , 23)
2. parties' contentions regarding finality of judgments vs. allegations of fraud. (Para 6 , 7 , 8 , 9 , 10 , 11)
3. fraud vitiates all proceedings and orders regardless of finality. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
4. specific inquiry into whether fraud was committed in obtaining previous court orders. (Para 21 , 22 , 24 , 25 , 26 , 27 , 28 , 29 , 30)
5. an agreement for sale does not transfer ownership or title under transfer of property act. (Para 31 , 32 , 33)
6. previous judgment set aside for fraud; acquisition confirmed in favor of housing board. (Para 34 , 35 , 36 , 37)

Order

Arguments concluded on ::: February 04, 2026

Order reserved on ::: February 04, 2026

Order pronounced on ::: April 09, 2026

1. The facts of the case in brief, as per the pleadings made by the original petitioners i.e. private persons, Rajasthan Housing Board and Shree Ram Colony B Vikas Samiti (for short 'the Housing Society'), in the petitions, which have been filed separately, are as under:-

** On 12.10.1979 the Urban Improvement Trust (for short 'the UIT') issued a notice under Section 52 of the Rajasthan Urban Improvement Act, 1959, with regard to acquiring the land.

** By way of an agreement to sale dated 31.07.1981 the Jawaharpuri Bhawan Nirman Sahakari Samity Limited (for short 'the Vikas Samiti), Jaipur purchased the land, came into possession, prepared the plan for residential scheme named as Shri Ram Colony and made allotment of plots to its members.

** An another agreement was executed on 31.07.1986 for extension of time for payment. Further on 13.12.1988 one another agreement was executed, which was signed by the successors and also by the original signatories to the agreement dated 31.07.1981.

** On 02.09.1989 the RHB published a scheme for construction of residential houses upon the agricultural land, measuring 42 Bighas 10 Biswas, situated in village Chainpura and Durgapura in Jaipur City.

*** On 10.01.1990 a Notification under Section 4 of the Land Acquisition Act, 1894 (for short ‘Act of 1894) was issued by the State Government for construction of a housing colony by the RHB.

** On 09.04.1990 the Khatedars/Tenants filed objections against the said acquisition.

** On 19.07.1990 the State Government published a notification under Section 4 of the Act of 1894, which was followed by another notification dated 04.01.1991, whereby, invoking the urgency clause under Section 17 (a), declaration was made under Section 6 and a direction was given to the concerned authority under Section 9 to take possession of the land in question.

** Few persons claiming to be the Khatedars, submitted a representation on 09.04.1990 to the State Government in regard to the land in question.

*** On 13.04.1991 the Housing Cooperative Society issued a notice under Section 80 of CPC opposing the acquisition and for dropping the same.

** A declaration under Section 6 of the Act of 1894, was issued dispensing with the inquiry under Section 5A of the said Act by resorting to Section 17(4) of the said Act, which was published in the official gazette on 13.06.1991.

** S.B. Civil Writ Petition No.5561/1991 was filed by the Khatedars/Tenants by which validity of both the acquisition notifications were challenged.

** On 05.12.1991 physical possession of the land in question was taken by the concerned authority of the State Government which was handed over to the representatives of the RHB.

** On 16.12.1991 an interim order to maintain the status quo was passed in SBCWP No.5561/1991 by the Coordinate Bench of this Court. The Coordinate Bench of this Court passed an order for appointment of Commissioner and also directed to maintain the status quo in respect of the land and the houses thereon.

** Vide order dated 25.07.1992 the interim order dated 16.12.1991 was confirmed.

** The Khatedars submitted objections before the Land Acquisition

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