Citation : 2009 Latest Caselaw 2160 Del
Judgement Date : 20 May, 2009
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(OS) 904/2009
% Date of decision: 20th May, 2009
SMT. RAJWANTI AND ANR. ....... Plaintiffs
Through: Mr. Sudhir Nandrajog, Sr.
Advocate with Mr. Manish Jain,
Advocate for the plaintiffs of Kings
& Alliance Advocates.
Versus
SH. KISHAN CHAND SHEHRAWAT
AND ORS. ....... Defendants
Through: Ex-parte
CORAM :-
HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
1.
Whether reporters of Local papers may be allowed to see the judgment? Yes
2. To be referred to the reporter or not? Yes
3. Whether the judgment should be reported in the Digest? Yes
RAJIV SAHAI ENDLAW, J (ORAL)
1. The suit has been filed for (i) declaration of the consent decree
and order dated 7th December, 2004 decreeing the suit in terms
thereof, of the court of the Additional District Judge, Delhi as null
and void, and for (ii) declaring the agreement to sell and other
agreements/rectifications/power of attorney, all with respect to the
property, subject matter of the consent decree and in pursuance
thereto, as null and void, and for (iii) possession of the property
subject matter of the compromise decree, and for (iv) permanent
injunction etc. against the defendants.
2. The suit came up first on 18th May, 2009 when doubt was
expressed by this Court as to the maintainability of the suit owing to
the provisions of Section 47, Order 23 Rule 3A of the CPC as well as
on the aspect of limitation. On the request of the senior counsel for
the plaintiff the matter was posted for today.
3. Order 23 Rule 3A of the CPC provides that no suit shall lie to
set aside a decree on the ground that the compromise on which the
decree is passed was not lawful.
4. The case of the plaintiffs shorn of details is that the plaintiff
No. 1 was allotted plot No.85, Block D, admeasuring 350 sq. meters
at Rangpuri by the DDA in lieu of her acquired lands; that the
plaintiff No. 1 and her daughter plaintiff No. 2 owned other lands
also which were subject matter of acquisition proceedings; that the
defendant No. 1 is the son of the brother of the husband of the
plaintiff No. 1; that the plaintiff No. 1 trusted the defendant No. 1
blindly; that the defendant No. 1 took the responsibility of pursuing
the land acquisition compensation case and allotment of alternate
plots to the plaintiff No. 1; that in the month of March, 2003 the
defendant No. 1 took the plaintiff No. 1 to the residence of his
daughter and son-in-law impleaded as defendants No. 2 & 3
respectively; that the defendant No. 3 is a judicial officer in Delhi; on
that date thumb impression of the plaintiff No. 1 was obtained on a
number of blank as well as written papers; that the plaintiff No. 2
was also brought along with her identity card and the both the
plaintiffs were thereafter taken to the Sub Registrar office at
Kapashera; that both the plaintiffs were made to put their thumb
impressions on certain papers at Kapashera and their photographs
were also taken; that the plaintiffs were misled by the defendants
No. 1 to 3 into believing that the whole exercise was being done for
receiving compensation claim for the acquired lands of the plaintiffs;
the defendants No. 1 to 3 also deposited Rs. 2 lacs in the account of
the plaintiff No. 1; that the plaintiff No. 1 subsequently learnt that
she had been duped by the defendants No. 1 to 3 by getting a GPA
and Will executed fraudulently in favour of the defendant No. 2 to
usurp the plot aforesaid allotted to the plaintiff No. 1 at Rangpuri;
when the plaintiff No. 1 confronted the defendant No. 1 he stated
that he had purchased the said plot of the plaintiff No. 1 for a
consideration of Rs. 20 lacs and out of which Rs. 2 lacs had been
deposited in the account of the plaintiff No. 1; that the plaintiffs took
immediate steps for revocation of the Will and the General Power of
Attorney and also served a notice of revocation dated 29th
September, 2004 and also made a complaint/representation dated
24th September, 2004 to the Lt. Governor of Delhi and Commissioner
of Police, Delhi; that the defendants No. 1 to 3 on coming to know of
revocation threatened the plaintiff No. 1 and in pursuance to the
said threats, on the blank papers got signed from the plaintiff No. 1
fabricated an agreement to sell dated 28th May, 2003 of the
aforesaid plot of land by the plaintiff No. 1 in favour of the defendant
No. 4 who is stated to be an accomplice of the defendants No. 1 to
3; that the said agreement to sell is also for a consideration of Rs. 20
lacs out of which Rs. 5 lacs were purported to be given in cash as
earnest money; that besides the said agreement, another agreement
to sell dated 31st March, 2003 in favour of the defendant No. 1 was
similarly fabricated; the defendant No. 5 is stated to be an attesting
witness to the forged documents and another accomplice of the
defendants No. 1 to 3; that the defendant No. 4 filed a false
complaint dated 2nd September, 2004 against the plaintiff No. 1; that
the plaintiff No. 1 and her relatives were also implicated in another
false case before the Court of Metropolitan Magistrate, New Delhi,
with the connivance of the defendant No. 3 being a judicial officer;
that the plaintiff No. 1 made a complaint dated 5th October, 2004 of
the aforesaid acts to the police authorities; yet another FIR was filed
against the plaintiff No. 1 by the defendant No. 1; that the plaintiffs
filed a Criminal Writ Petition No. 1302/2004 before this Court inter
alia for quashing all the FIRs against the plaintiff No. 1 and for
registering FIR against the defendants; that during the pendency of
the said writ petition the defendants No. 1 to 3 approached the
plaintiff No. 1 for settlement with the promise to withdraw all the
FIRs if the plaintiffs No. 1 & 2 give a statement in the Court with
regard to the plot at Rangpuri in favour of the defendants in a suit
filed by the defendants; that the plaintiffs under coercion signed
several papers as asked by the defendants and also went to Tis
Hazari Court and made statement to the satisfaction of the
defendants in the suit filed by the defendants qua the plaintiffs. It is
the case of the plaintiffs that on the statement being made by them
that suit was decreed pursuant to the alleged compromise recorded
in the suit. The plaintiffs however claim that they could not come to
know the Court in which their statements were recorded.
5. It is further the case of the plaintiffs that the defendant No. 1
forcibly handed over Rs. 30 lacs towards the aforesaid plot of land to
the plaintiff No. 1 and which the plaintiff No. 1 had no choice but to
retain under the threat and intimidation from the defendants. The
plaintiffs have further pleaded that the defendants No. 1 to 4 made a
statement before this Court in the writ petition aforesaid of the
matter having been settled and accordingly the said writ petition was
disposed of by order dated 2nd May, 2005 whereby both the FIRs
against the plaintiff No. 1 were also quashed.
6. The plaintiffs have further pleaded that thereafter in the month
of October, 2005 the defendants No. 1 to 3 again forcibly took the
plaintiff No. 1 to the office of the Sub-Registrar Kapashera and got
some papers signed and registered in respect of the aforesaid plot of
land.
7. Pursuant to the allotment of the plot aforesaid, the possession
of the plot is stated to have been delivered in October, 2005 and it is
pleaded that the same was illegally taken over by the defendants No.
1 to 3 on the pretext of the forged and fabricated documents and
consent decree aforesaid. The defendant No. 1 to 3 are also stated to
have commenced raising constructions thereon.
8. The relative of the plaintiffs who is also stated to have also
been named in the FIR at the instance of the defendants against the
plaintiff No. 1 and which relative is also stated to have remained in
judicial custody without any fault is stated to have filed a
complaint/representation before the Chief Justice of this Court
against the defendants No. 1 to 3 for their illegal actions.
9. The plaintiffs claim to have learnt that this Court took
cognizance of the aforesaid complaint and initiated an enquiry
against the defendant No. 3 being a judicial officer. The plaintiff No.
1 is stated to have been summoned to appear in the said enquiry.
10. The plaintiffs plead that knowledge of the aforesaid enquiry
against the defendant No. 3 by this Court gave hope to the plaintiffs
of getting justice and led the plaintiffs to institute the present suit.
The plaintiffs claim to have thereafter traced the records of the suit
wherein the consent of the plaintiff No. 1 was obtained by force,
fraud, coercion and undue influence and upon learning of the
particulars of the said suit instituted this suit. The plaintiffs also
claim to have learnt of a sale deed dated 20th October, 2005,
Rectification Deed and Special Power of Attorney got registered by
the defendants No. 1 to 3 forcibly from the plaintiff No. 1.
11. The certified copy of the plaint in the suit in which the consent
decree sought to be set aside was passed shows that the same was
by the defendant No. 1 herein against the plaintiffs No. 1 & 2 and
the defendant No. 4 herein and certain other persons who are not
parties to this suit. The claim of the defendant No. 1 herein as
plaintiff in that suit for declaration and permanent injunction was
that the plaintiff No. 1 herein had agreed to sell the alternate plot to
be then still allotted to her for a consideration of Rs. 10 lacs and had
executed an irrevocable General Power of Attorney and a Will with
respect thereto in favour of the defendant No. 2 herein. The plaintiff
No. 1 was also alleged to have executed an agreement to sell dated
31st March, 2003 in favour of the defendant No. 1 for Rs. 10 lacs and
out of which Rs. 2 lacs had been received by the plaintiff No. 1
herein with the balance Rs. 8 lacs being payable at the time of
delivery of possession; it was further a term of the said agreement
that upon failure of the plaintiff No. 1 herein to execute the transfer
document, the defendant No. 2 herein as the attorney of the plaintiff
No. 1 will be entitled to execute the sale deed in favour of the
defendant No. 1 and the balance sale consideration of Rs. 8 lcas will
be paid to the plaintiff No. 2 herein. It was further pleaded therein
that the plaintiff No. 1 herein became dishonest and started
demanding additional consideration of Rs. 10 lacs from the
defendant No. 1 herein; that ultimately the sale consideration was
agreed to be enhanced to Rs. 15 lacs and the defendant No. 1 herein
paid another sum of Rs. 3 lacs in cash to the plaintiff No. 1 and the
balance Rs. 10 lacs was adjusted by execution of a General Power of
Attorney by defendant No. 1 with respect to another plot (Parnala
Plot) in favour of the plaintiff No. 2 herein. It was further pleaded
that a fresh agreement to sell dated 22 nd July, 2003 was executed by
the plaintiff No. 1 in favour of the defendant No. 1 and the original
sale deed of Parnala plot was delivered by the defendant No. 1 to the
plaintiff No. 2. The defendant No. 1 pleaded to have, in pursuance to
the said agreement also executed and got registered a GPA,
agreement to sell and Will in favour of the plaintiff No. 2 with
respect to the Parnala plot of land in adjustment of the balance sale
consideration of Rs. 10 lacs.
12. A registered agreement to sell dated 25th August, 2004 also
executed by the defendant No. 2 as the attorney of the plaintiff No. 1
in favour of the defendant No. 1 with respect to the Rangpuri plot.
13. The defendant No. 1 in his suit aforesaid further pleaded that
the plaintiffs herein had however thereafter turned dishonest and
lodged complaints and got issued notices leading the defendant No.
1 to institute that suit for declaration that the agreement to sell
dated 31st March, 2003 and 22nd July, 2003 executed by the plaintiff
No. 1 in person and registered agreement to sell dated 25th August,
2004 executed by the defendant No. 2 herein as attorney of the
plaintiff No. 1 in favour of the defendant No. 1 with respect to
Rangpuri plot were legal, valid and for consideration and the
subsequent agreement dated 25th August, 2003 executed by the
plaintiff No. 1 herein in favour of the defendant No. 4 herein was null
and void and for permanent injunction restraining the plaintiffs from
entering into any agreement with respect to the aforesaid plot and
from transferring the possession thereof to any other person.
14. The application under Order 23 Rule 3 of the CPC filed by the
plaintiff and the defendants in that suit inter alia records:-
(i) That the plaintiff No. 1 admitted the claim of the
defendant No. 1 with respect to the plot aforesaid and
admitted execution of the agreements to sell and other
documents with respect thereto in favour of the defendants No.
1 to 2 herein.
(ii) The plaintiffs further admitted having received Rs. 5 lacs
by way of cheque and cash and the remaining consideration of
Rs. 10 lacs with respect to the Rangpuri plot by adjustment in
the price of Parnala plot transferred by the defendant No. 1 to
the plaintiffs.
(iii) The deed of revocation of the General Power of Attorney
and Will with respect to Rangpuri Plot in favour of the
defendant No. 2 was admitted to be bad and the said
documents were agreed to be irrevocable.
(iv) Plaintiff No. 1 admitted to execution and registration of a
fresh Will with respect to the Rangpuri plot in favour of the
defendant No. 2.
(v) The plaintiff No. 1 undertook to deliver vacant
possession of the Rangpuri plot as and when the possession
thereof was delivered by the DDA and also authorized
defendant No. 1 to approach the DDA directly for taking
possession of the said plot.
(vi) That the subsequent agreements admitted to have been
executed by the plaintiff No. 1 in favour of the other
defendants in the suit with respect to the said plot were set
aside.
(vii) The parties also agreed to withdrawal of the Criminal
Writ Petition and other appeals/complaints.
(viii) The plaintiffs herein undertook not to enter into any
agreement in future with respect to the aforesaid plot.
15. The court of the Additional District Judge where the suit
aforesaid was pending after recording the statement of the parties
allowed the compromise application and decreed the suit in terms
thereof.
16. I have also perused the documents with respect to the plot
executed subsequent to the aforesaid compromise and relief of
setting aside whereof is also claimed in this suit. They are in
pursuance to the compromise decree aforesaid and not in pursuance
to any independent right created thereunder even though reference
to the compromise decree is not made therein. Suffice it is to state
that the said documents have no independent legs and if the
compromise decree aforesaid is to be set aside, the said documents
would ipso facto stand annulled/cancelled.
17. The senior counsel for the plaintiff to meet the bar of Order 23
Rule 3A of the CPC referred to:-
(A) Dadu Dayal Mahasabha Vs. Sukhdev Arya (1990) 1 SCC
189. In this case the suit had been dismissed as withdrawn on the
application of the plaintiff. Subsequently an application was filed for
recalling of the said order. It was contended that the person who had
represented to be the secretary of the plaintiff/appellant in that case
and withdrawn the suit was in fact not the secretary and was thus
not competent to withdraw the suit. In that context, the Apex Court
drew a distinction between the fraud practised on a party and the
fraud practised on the court and in the facts of that case having
found a fraud to have been practised on the court, held that such
fraudulent act can be recalled by the court at any time. It was held
that if a consent decree is challenged on the ground that the party
did not give the consent, then the court has duty to set aside the
decree if finds that the court was induced into passing the decree on
a fraudulent representation; however if the case of the party
challenging the consent decree is that he was in fact a party to the
compromise but his consent had been procured by fraud, the court
passing the consent decree has no inherent power to investigate the
matter and the only remedy is to institute a suit. The provision of
Order 23 Rule 3 or Rule 3A introduced by the 1976 amendment of
CPC were not for discussion in that judgment and in fact the
withdrawal of suit and application for restoration were both of prior
to the coming into force of 1976 amendment.
(B) URI Civil Contractor AB Vs. Mrs. Pampa Mukherjee 56
(1994) DLT 608. In this case the Court passing the compromise
decree had on an application for setting aside the same, framed
issues. Revision was preferred to this court against that order. This
Court found that on averments in the application, no case of fraud
practised on Court was made out and thus the Court passing the
compromise decree had no power to entertain an application for
setting aside the compromise decree.
The senior counsel for the plaintiff has contended that where a
fraud has been practised on the court, the bar of Section 3A will not
come in the way and a independent suit would be maintainable to set
aside a compromise decree on the said ground. However, I am
unable to find the said proposition flowing from this judgment. On
the contrary, this judgment expressly notices Rule 3A of Order 23
and reiterates that the only remedy for seeking setting aside of the
compromise judgment is by applying to the court which had passed
the judgment. In fact, this judgment purports to narrow down the
scope of inquiry in the said application also only to the cases where a
case of fraud practised on the court is made out and the application
to the same court also being not maintainable where the case is of a
fraud practised on the other party.
(C) Ram Kishan Vs. Smt. Sardari Devi MANU/PH/0544/2002
where a single judge of the Punjab High Court following a Division
Bench of that court held an independent suit to be maintainable. It
must however be noticed that the single judge while holding so
expressed reservations about the correctness of the law laid down by
the Division Bench of Punjab High Court, in view of Order 23 Rule
3A CPC.
With respect, I am unable to follow the dicta in view of express
provision of law
(D) Pushpa Devi Bhagat Vs. Rajinder Singh (2006) 5 SCC
566 only for the purposes of reference thereto being made in the
next judgment cited below. This judgment otherwise is concerned
with nature of consent decree and appealability thereof and not with
Order 23 Rule 3A.
(E) Gopal Mohan Vadhera Vs. Jagdish Rai Vadhera 2008
(100) DRJ 371. In this case an application was filed for setting aside
of a consent decree passed by this Court. A Single Judge of this
Court noticed the observations of the Apex Court in Dadu Dayal
Mahasabha (supra) that where there was no fraud on the court, the
remedy of party challenging the consent decree was to institute a
suit; and also the observations of Apex Court in Pushpa Devi
Bhagat (supra) that only remedy of challenge to the consent decree
was by filing an application to the court passing the compromise
decree, under the proviso to Order 23; it was observed by the Court
that there was an apparent conflict between the two decisions of the
Apex Court.
I may however, with respect, observe that there is no conflict.
As held by me above, Dadu Dayal Mahasabha was not a case of
consent decree, further that related to a case of prior to induction of
Rule 3A in Order 23 by the 1976 amendment. Then, an independent
suit was of course possible. However, after the said amendment it is
barred, as held in Pushpa Devi Bhagat.
18. Thus, none of the judgments cited by senior counsel for the
plaintiff are found to be laying down that an independent suit lies to
set aside a compromise decree. Rule 3A of Order 23 is unequivocal in
this regard and does not permit any distinction to be made between
suits where challenge to compromise decree is on the plea of fraud
having been played on the Court as distinct from cases where plea is
of fraud having been played by one party on the other. The law is, no
independent suit lies and the only remedy is by way of an application
before Court passing the consent decree.
19. I find that a Single Judge of this court in Uttam Chand Bhatia
Vs. Amir Chand Bhatia Suit No.284/1984 decided on 6th December,
1984 and which was followed in Joginder Singh Bedi Vs. Bawa
Darbara Singh 39 (1989) DLT 270 has unequivocally laid down that
bar of Rule 3A is a complete bar and no suit lies for setting aside
compromise decree on any ground. I also find that the Apex court in
Banwari Lal vs. Smt. Chando Devi AIR 1993 SCC 1139 has also
held that the only remedy of a party which is the party to a
compromise decree and challenging the same, is to apply to the
same court and no independent suit lies.
20. The senior counsel for the plaintiff has contended that the suit
qua the other reliefs i.e. of declaration qua the documents executed
subsequent to the compromise decree and for the relief of possession
of the property which was the subject matter of the agreement with
respect to which the compromise decree was passed is maintainable.
However, I do not find any merit in the said contention also. The
plaintiff is not entitled to the said reliefs without the first relief.
Moreover, if the plaintiff is found entitled to the first relief, the
provisions of Section 144 of the CPC would come into play in as
much as in that situation the compromise decree would be set aside
and under the said provision, upon the same happening, the court on
an application is empowered to undo all that had been done in
pursuance to the said compromise decree. Rule 3A of Order 23
cannot be permitted to be defeated by pleading that the suit is for
setting aside/challenging acts done in pursuance to compromise
decree and not for setting aside the compromise decree.
21. I have enquired whether the defendants are claiming any title
in the documents executed consequent to the compromise decree or
in the property possession whereof the defendants are pleaded to
have taken directly from the DDA, independently of the compromise
decree. Nothing is pointed out. There is no pleading to that effect
nor does it flow from any of the documents. Of course, the
documents do not mention the compromise decree but the rights
thereunder are found to be flowing from the compromise decree
itself. Moreover, the case of the plaintiff for declaration of the said
documents as bad and for possession is only on the basis of invalidity
of the compromise decree. Thus I do not find the other reliefs also to
be outside the ambit of Rule 3A of the CPC. The factum of defendant
No. 2 & 3 herein being not parties to suit in which compromise
decree was passed also does not come in the way. They are not
claiming any right in the plot. The Power of Attorney in favour of
defendant No. 2 is stated to be executed in consideration of
agreement to sell in favour of defendant No.1
22. The senior counsel for the plaintiff has on the aspect of Section
47 of the CPC referred to Addisons Paints and Chemicals Vs. M/s
Sant Ram Parma Nand AIR 1976 Delhi 137 inter-alia holding that
Section 47 is not intended to be used for the purposes of
investigating matters relating to the validity of the decree itself,
when on the face of it there is nothing illegal about the decree and
that the court executing the decree is not competent to embark on
an inquiry into facts which if established will tend to show that the
court passing the decree had no jurisdiction to do so. However since
the suit has been found to be not maintainable under Rule 3A of
Order 23, it is not deemed necessary to deal with the aspects of
Section 47 of the CPC and of the limitation.
23. The suit is thus not found to be maintainable. The plaintiff shall
of course have the liberty to take appropriate proceedings in law if
any available to them for setting aside of the compromise decree.
The suit is dismissed.
24. The senior counsel for the plaintiff has requested for refund of
the Court fee of about Rs. 1,00,000/- paid on the plaint. Reliance is
placed on Aya Singh vs. Munshi Ram 1968 DLT 310 (DB). It is
argued that the courts have inherent powers to refund the court
fees. The Division Bench in this case was concerned with excess
court fee paid under a mistake; the counsel was found to be not
regularly practicing at the bar of this Court; though merely for the
reason of array of authorities, the inherent power of Court to refund,
was upheld but it was further laid down that the power is not to be
exercised in every case but dependent on facts of each case. The
senior counsel for the plaintiff has urged that the plaintiff No. 1 is a
widow and has already suffered and inherent power be exercised in
her favour. I am unable to at this stage hold the equities in favour of
plaintiffs. The plaintiffs have admittedly received sale consideration
as noticed above. The pleas of plaintiffs of circumstances in which it
was received have not been adjudicated. The transaction impugned
is stale. The cause of action for the suit was pleaded as the enquiry
initiated by this court on its administrative side against defendant
No. 3. The plaintiff being possessed of monies received against the
transaction impugned can spend some money out of it in court fees.
No case of mistake is made out. The suit has been filed by seasoned
advocates. The plaintiff was represented in this Court by senior
counsel of this Court. Even after the Court had expressed reservation
about maintainability, full hearing has been availed. A growing
tendency has been observed. The litigants feel their court fee is
justified only when court's time is taken over years. Whenever the
courts endevaour to dispose of lis early, demands for refund of court
fees are made. This cannot be permitted. Rates of court fees were
not prescribed on presumption of proceedings pending for years. The
legislature has not provided for refund of court fees on rejection of
plaint. In this present case, had this suit not been dismissed at
threshold, if the view expressed by me above is correct, it would
have been dismissed later; by that time other remedies may/may not
have been available to plaintiff. In that sense early dismissal has
done more good than harm to the plaintiff. I am in the circumstances
not inclined to order immediate refund of court fee to the plaintiff.
However, in the event of plaintiff making an application before the
Court passing the decree and further in the event of plaintiff
succeeding in establishing a case of fraud as pleaded, the plaintiff
shall be entitled to refund of court fees. In the event of plaintiff filing
certified copy of judgment setting aside the compromise decree
impugned in this suit, the necessary certificate of refund of court
fees be issued.
RAJIV SAHAI ENDLAW (JUDGE) May 20, 2009 PP/rb
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