Citation : 2023 Latest Caselaw 6814 Guj
Judgement Date : 15 September, 2023
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SECOND APPEAL NO. 15 of 2023
With
CIVIL APPLICATION (FOR STAY) NO. 1 of 2023
In R/SECOND APPEAL NO. 15 of 2023
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE BHARGAV D. KARIA
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1 Whether Reporters of Local Papers may be allowed to see the judgment ?
2 To be referred to the Reporter or not ?
3 Whether their Lordships wish to see the fair copy of the judgment ?
4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ?
========================================================== TRIVEDI KALIDAS UMIYASHANKAR Versus LR OF DECD THAKOR FAKIRJI MAFAJI ========================================================== Appearance:
MR. BHAVIK P SHAH(6391) for the Appellant(s) No. 1,2,2.1,2.1.1,2.1.2,2.1.3,3 MR. ZALAK B PIPALIA(6161) for the Appellant(s) No. 1,2,2.1,2.1.1,2.1.2,2.1.3,3 for the Respondent(s) No. 1.1,2,3 VINAY D BAIRAGRA(8360) for the Respondent(s) No. 1,1.2,1.3,1.4,1.5,1.5.1,1.5.2,1.6,1.7 ==========================================================
CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
Date : 15/09/2023
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CAV JUDGMENT
1.Heard learned advocate Mr. Zalak B. Pipalia
for the appellants and learned Senior
Advocate Mr. Kamal B. Trivedi assisted by
learned advocate Mr. Vinay D. Bairagar for
respondent nos. 1, 1.2, 1.3, 1.4, 1.5, 1.5.1,
1.5.2, 1.6 and 1.7.
2.By this appeal, the appellants have
challenged the legality and validity of
Judgment and Order dated 13.12.2022 passed
of 2019 passed by learned Additional District
Judge, Gandhinagar at Kalol raising the
following substantial questions of law:
"(A) Whether the Ld. Lower Appellate court has erred in coming to a conclusion that the aspect of fraud as alleged by the plaintiff is not proved before the Ld. Trial Court?
(B) Whether the Ld. Lower Appellate Court has wrongly not considered the oral evidence of
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the defendant no.1 for the purpose of proving the factum of passing of consideration in lieu of execution of sale deed without appreciating the provisions of the Evidence Act?
(C) Whether the Ld. Lower Appellate Court has erred in giving the finding that the suit is barred by limitation?
(D) Whether the Ld. Lower Appellate Court has erred in reversing the well reasoned judgment of the Trial Court without appreciating that the burden of proof lies on the defendant to prove his defense as mentioned in his written statement?
(E) Whether the Ld. Lower appellate Court has erred in passing the impugned judgment without taking into consideration that there is no evidence produced on record by the defendants to show that they have paid the amount of consideration to the plaintiffs?"
3.Brief facts of the case are that land bearing
Survey No.809 admeasuring 40193 sq. mtrs at
Village Ranchada, Taluka Kalol, District
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Gandhinagar was under the joint ownership of
seven persons out of which the unsold portion
of 11852.8 sq. mtrs (hereinafter referred to
as "the suit property") was owned by the
appellants - original plaintiff nos. 1 to 3
(hereinafter referred to as the plaintiffs),
respondent no.2-original defendant no. 2
(hereinafter referred to as defendant no.2)
and respondent no.3-original defendant no.3
(hereinafter referred to as defendant no.3).
So far as respondent no.3 original defendant
no.3 is concerned, he had no share in the
disputed property but he was joined as party
for technical reasons but no relief was
claimed in the plaint.
3.1) On 06.06.2005, one Shri
Chandrakantbhai Ramkrushnabhai Tripathy
plaintiff no. 3 and Shri Jaydevbhai
Ramkrushnabhai Tripathy - defendant no.2
executed a Power of Attorney in favour of
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Shri Kalidas Umiyashankar Trivedi - plaintiff
no.1 to execute the Agreement to Sale/Sale
Deed on their behalf.
3.2) Plaintiffs and defendant no.2 being
the owner of the land bearing Survey No.809
admeasuring 10371.2 sq. mtrs and defendant
no.3 owning share of 1481.6 sq. mtrs executed
a Sale Deed duly registered under the
provisions of Indian Registration Act, 1908
on 13.09.2005 in favor of defendant no.1 for
a sale consideration of Rs. 9,58,500/-. The
parties to the aforesaid sale deed also
executed a notarized Declaration cum
Indemnity Bond to the effect that out of the
total land under Survey no. 809, the
remaining unsold portion of land admeasuring
11852.8 sq. mtrs is sold to one Shri
Fakirbhai Mafaji Thakore, defendant no.1 in
the suit.
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3.3) The other landowners and their legal
heirs having interest in the land bearing
survey no. 809 executed an Acceptance Deed
dated 12.08.2005 duly registered in favour of
defendant no.1 inter-alia accepting and
confirming the execution of the aforesaid
sale deed in favor of defendant no.1 in its
entirety.
3.4) It is the say of the plaintiffs that
defendant no.1 and his men met deceased
Dashrathbhai Umiyashankar who was engaged in
commission business of land property and he
assured good price for the disputed property
and obtained Power of Attorney from the
plaintiffs for want of some procedure and
documentation in respect of prospective
customers. It was also contended that the
plaintiffs did not receive any amount of
consideration from defendant no.1 in lieu of
signature in Power of Attorney or other
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documents. On the contrary, the plaintiffs
were told to wait for completion of Diwali
festival and were also assured for good
prospective amount for the suit property but
when the plaintiff inquired into Revenue
record, it was revealed that defendant no.1
has executed a registered sale deed on
13.09.2005 for consideration of Rs.9,48,500/-
The plaintiffs further contended that
plaintiff no.1 was shown as Power of Attorney
of plaintiff no.3 and defendant no.3 in the
sale deed which was registered at Sr No.2633
in the office of sub registrar. The
plaintiffs were surprised when they obtained
copy of index on 27.10.2008 and came to know
that they have been cheated by defendant no.1
by obtaining fraudulent signature in sale
deed in the name of Power of Attorney. It was
also contended that defendant no.1 has
committed criminal breach of trust by
obtaining sale deed fraudulently and mutation
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of the same in Revenue record by Entry
No.6465 without payment of consideration to
the plaintiffs.
3.5) The plaintiffs filed Special Civil
Suit No. 124 of 2008 before the learned
Principal Civil Judge, Kalol seeking
cancellation of Registered Deed dated
13.09.2005.
3.6) The defendant no.1 filed its written
statement on 08.07.2009 raising various
grounds including the aspect of limitation as
well as categorically stating that there is
no fraud on part of the original defendant
no.1 and that sale consideration was duly
paid to the plaintiffs.
3.7) The plaintiffs thereafter sought
amendment of the plaint on 25.01.2012 which
was allowed. Thereafter suit was dismissed
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for non prosecution vide order dated
27.10.2015 under Order IX Rule 3 of the Code
of Civil Procedure, 1908 (For short "the
Code") which was restored vide order dated
03.02.2018 by the trial Court on an
application filed by the plaintiffs.
3.8) The plaintiffs filed examination in
chief on 11.12.2018 and plaintiff no. 1 was
cross examined on 08.01.2019. Defendant
No.1/2 and one Shri Thakore Ranchodji Buaji,
who was watchman of the suit property, filed
their respective affidavits on 18.03.2019 and
24.06.2019 and the said witnesses were cross
examined on 15.04.2019.
3.9) Learned trial Court passed the
Judgment and Decree dated 05.11.2019 in
favour of the plaintiffs setting aside the
registered Sale Deed dated 13.09.2005 and
Acceptance Deed dated 12.08.2005.
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3.10) Being aggrieved and dissatisfied by
the Judgment and Decree, defendant no.1 filed
First Appeal being Regular Civil Appeal No.87
of 2019 before the learned Additional
District Court, Gandhinagar.
3.11) Learned Appellate Court by Judgment
and Order dated 13.12.2022 allowed the appeal
filed by defendant no.1 quashing and setting
aside Judgment and Decree dated 19.12.2019
passed by the trial Court.
3.12) The appellants being aggrieved by
the Judgment and order dated 13.12.2022 have
preferred this Second Appeal raising the
substantial questions of law stated
hereinabove.
4.Learned advocate Mr. Zalak B. Pipalia for
the appellants submitted that learned
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Appellate Judge did not deal with the
evidence on record and has given weightage to
the aspect that the appellants did not
institute any criminal proceedings against
defendant no.1 and did not challenge the
entry of the registered sale deed before the
revenue authority without considering the
fact that the genuineness of the sale
transaction was challenged before the trial
Court and the plaintiffs have been successful
on the basis of evidence on record in the
said challenge before the trial Court. It was
submitted that the Appellate Court ignored
the aspect of non payment of consideration
during the execution of the sale deed, more
particularly, when the defendants have failed
to prove contrary that the sale consideration
was received by the plaintiffs by adducing
any evidence to that effect.
4.1) It was submitted that the Appellate
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Court committed an error by holding that
plaintiffs did not claim any relief for
recovery of possession and therefore, sale
deed could not have been cancelled by the
trial Court. It was submitted that as per the
provisions of the Evidence Act, oral evidence
is admissible to show that the document
executed was never intended to operate but
that some other agreement, not recorded into
the document was entered into between the
parties. It was submitted that the Appellate
Court has not taken into consideration the
material provisions of the Evidence Act while
arriving at the finding that the judgment of
the trial Court is only based upon cross
examination of the defendant.
4.2) It was submitted that suit was
instituted only on the basis that plaintiffs
were made to understand that they were
signing Power of Attorney and not sale deed,
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but sale deed was executed in favour of
defendant no.1 by misrepresentation without
payment of any consideration to the
plaintiffs. It was therefore, submitted that
the Appellate Court failed to appreciate that
the factum of payment of sale consideration
as well as the financial capacity and
requisite proof with regard to passing of the
sale consideration has not been produced and
not even proved by the defendants and
therefore, well reasoned judgment passed by
the trial Court could not have been reversed
on assumption and presumption without
assigning any cogent reason in support
thereof.
4.3) Learned advocate Mr. Pipalia invited
the attention of the Court to the cross
examination of plaintiff no.1 to submit that
when the plaintiff has specifically denied
receiving of amount of sale consideration, no
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questions/suggestions were put to the
plaintiff asking what was the full amount of
consideration to be paid to the plaintiff and
other legal heirs prior to or on the date of
execution of the sale deed nor any question
was asked about the amount of consideration
that was paid at the time of execution of the
sale deed.
4.4) Learned advocate Mr. Pipaliya
referred to and relied upon to the conclusion
arrived at by the trial Court that defendant
no.1 has failed to prove that payment of full
consideration to the plaintiffs by adducing
cogent evidence. It was therefore, submitted
that the Appellate Court failed to appreciate
the evidence led before the trial Court in
its true perspective inspite of the fact that
it was specifically the case of the
plaintiffs that sale deed was executed
fraudulently.
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4.5) It was submitted that the Appellate
Court was also required to check the minute
details with regard to the signatures,
measurement etc. of the suit property in the
sale deed, more particularly, when defendant
no. 1.2 Shaileshbhai Fakirbhai Thakor had
deposed on oath that he was present at the
time of execution of the sale deed with his
deceased father and had signed the sale deed
as witness. It was submitted that on
consideration of signature of witness of the
sale deed, it appears that one Bharat F.
Thakore has signed the same and not
defendant No.1.2 Shaileshbhai Thakor. Though
defendant no. 1.2 during his cross
examination stated that his second name is
Bharat Thakor, he failed to clarify the same
in his affidavit of examination in chief. It
was therefore pointed out that the learned
Appellate Court has missed all such minute
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details while appreciating the evidence on
record.
4.6) Learned advocate Mr. Pipaliya would
submit that the learned Appellate Court has
missed out the most relevant part that the
plaintiffs' signature is also not present on
each and every page of the registered sale
deed which is considered in detail by the
trial Court. Learned Appellate Court
therefore, could not have quashed and set
aside the detailed judgment rendered by the
trial Court without taking into consideration
all the infirmities in the sale deed sought
to be cancelled by the plaintiffs.
4.7) It was submitted that learned
Appellate Judge has given a finding that the
burden of proving certain averments made in
the plaint with regard to fraud and non
receipt of consideration is upon the
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plaintiffs, but at the same time learned
Judge did not take into consideration that
when it is a case of fraud, even oral
evidence is admissible to show that the
document in question was never intended to be
executed and the same has been sufficiently
proved by the plaintiffs relying upon the
oral evidence of the defendant No.1.
4.8) It was submitted that learned
Appellate Court has erroneously come to the
conclusion since the plaintiffs no.1 was
working with the office of the Ahmedabad
Municipal Corporation, he was an educated
person and therefore, he was well aware of
the difference between power of attorney.
agreement to sale and a sale deed ignoring
the fact that the plaintiff no.1 in his cross
examination has stated that he has studied
till 7th Standard and in fact he was employed
with the corporation as a peon, and therefore
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a person who is educated till class 7 can
hardly make out any difference between the
documents such as power of attorney, sale
deed and agreement to sale. It was therefore,
submitted by learned advocate Mr. Pipaliya
that the learned Appellate Judge has arrived
at such findings only on the basis of
inferences and learned Judge was not right in
holding that since person is serving in the
office of Municipal Corporation, he is bound
to know about the difference in the
documents.
4.9) It was submitted by learned advocate
Mr. Pipaliya that heavy reliance was placed
by learned Appellate Judge upon the cross
examination of plaintiff no.1 wherein he has
stated that he is not in possession of the
subject land, to reach to a conclusion that
without execution of sale deed in favor of
defendant No.1, they could not have been put
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in possession of the land in dispute.
4.10) It was therefore submitted that such
findings arrived at by learned Appellate
Judge is erroneous because it cannot be
presumed that when a person is in possession
then documents upon which he claims
possession is legal and valid.
4.11) Learned advocate Mr. Pipaliya
submitted that the findings arrived at by
learned Judge that the suit is time barred is
also erroneous as no such issue of limitation
was ever raised before the trial Court while
framing the issues and therefore, learned
Appellate Judge could not have given any
finding with regard to the said aspect. It
was submitted that suit being filed within
law of limitation is a mixed question of law
and fact and the same was required to be
raised before the trial Court and such issue
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could not have been considered by the
Appellate Judge in the First Appeal and
therefore, it is to be presumed that the
parties have waived the same. It was pointed
out that the cause of action mentioned in the
suit itself is clear to show that the suit
was filed within the limitation prescribed in
Article 56 of the Law of Limitation Act. It
was also pointed out that learned Judge has
misinterpreted the provisions of Section 54
of the Transfer of Property Act.
4.12) Learned advocate Mr. Pipaliya in
support of his submissions referred to and
relied upon the decision of this Court in
case of Bhupendra Shantilal Shah v. Fanny
Rustomji Contractor (Judgment dated
06.05.2022 passed in First Appeal
No.2592/2019), wherein after referring to the
decision of Apex Court in case of Subhra
Mukherjee v. Bharat Coking Coal Ltd.,
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reported in (2000) 3 SCC 312, it was held
that though the burden of proving fraud lies
on the persons alleging it, fraud is not
capable of being established by positive and
tangible proof. It is therefore, sufficient
if the evidence given is such as may lead to
an inference that fraud must have been
committed. It was submitted that in facts of
the said case it was observed that defendants
nos. 2 and 3 could not have remained silent
spectators to have waited for defendant no.1
to produce the original documents on his own
and law is clear on the point that if a
party calls upon other to produce a document
as evidence and on being produced, inspects
them, the document should be taken as
evidence by both the parties without proof
and should be admitted in toto.
4.13) Learned advocate Mr. Pipaliya also
referred to and relied upon the decision of
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in case of Gangabai v. Chhabubai reported in
(1982) 1 SCC 4, wherein the Apex Court while
interpreting sections 92(1) and 92 of the
Evidence Act, 1872 held that bar imposed by
sub-section (1) of section 92 applies only
when a party seeks to rely upon the
document embodying the terms of the
transaction and in that event, the law
declares that the nature and intent of the
transaction must be gathered from the terms
of the document itself and no evidence of
any oral agreement or statement can be
admitted as between the parties to such
document for the purpose of contradicting
or modifying its terms. It was further held
that sub-section is not attracted when the
case of a party is that the transaction
recorded in the document was never intended
to be acted upon at all between the parties
and that the document is a sham. Such a
question arises when the party asserts that
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there was a different transaction
altogether and what is recorded in the
document was intended to be of no consequence
whatever. For that purpose oral evidence is
admissible to show that the document
executed was never intended to operate as
an agreement but that some other agreement
altogether, not recorded in the document,
was entered into between the parties. The
Apex Court referred to and relied upon the
decision in case of Tyagaraja Mudaliyar v.
Vedathanni reported in AIR 1936 PC 70 wherein
it was held that the trial Court was right in
permitting the respondent to lead oral
evidence in support of her plea that the sale
deed dated January 7, 1953 was a sham
document and never intended to be acted upon.
It was not disputed that if the oral evidence
is admissible, the finding of the Court below
in favour of the respondent must be accepted.
It was therefore, submitted that in facts of
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the case, the Appellate Court has failed to
consider the oral evidence as admissible in
favour of the appellants-plaintiffs.
4.14) Reliance was placed on decision of
Division Bench of this Court in case of
Veljibhai Mavjibhai Mistry v. Joitiben Wd/o
Bababhai Jaitabhai Patel Through Legal Heirs
and others (Judgment dated 18.09.2017 passed
in First Appeal Nos.2254 and 2255 of 2015),
wherein it is held as under:
"6. In light of the provisions of Order VI Rule 4 read with the provisions of Section 100 of the Evidence Act, once, the plaintiff asserted that no consideration was received, the burden of proof to prove the contrary was on the defendants 1 and 2. Apart from the fallacy of the consideration having being paid on the same day, being exposed through their cross- examination itself, no receipts of proof that actual consideration has been paid is brought forth by them.
Payment of consideration in cash and cheque was within the special knowledge of the defendant no. 2 which burden both, the defendant No.
discharge. If it was their case that
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in fact, cash amount of Rs.29,00,000/- plus a cheque for an amount of Rs. 4,00,000/- was paid on the date of the Power Of Attorney, the primary responsibility to prove such fact was upon them. In fact, when a suggestion is made in the cross-examination, the defendant no. 1 categorically admits that he did
insisted for receipts."
5.On the other hand, learned Senior Advocate
Mr. Kamal Trivedi with learned advocate Mr.
Vinay Bairagar for the respondents original
defendants submitted that learned Appellate
Judge having appreciated the evidence on
record has rightly arrived at conclusion that
registered sale deed could not have been
cancelled by the trial Court when fraud and
non payment of consideration were not proved.
It was submitted that assuming that entire
sale consideration had not in fact being
paid, it could definitely not be a ground for
cancellation of the registered sale deed. It
was submitted that no question of law much-
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less any substantial question of law arises
from the impugned judgment and order passed
by the Appellate Court inasmuch as the
appellants-plaintiffs have failed to prove
the aspect of fraud, non payment of sale
consideration to the defendant no.1.
5.1) Learned Senior Advocate Mr. Trivedi
invited the attention of the Court that
defendant no.3 was shown as a confirming
party to the registered sale deed and he has
never challenged the said registered sale
deed. It was submitted that as per section
32(a) of the Registration Act, all the
parties who have executed the aforesaid said
deed, have signed and put their thumb
impressions in front of Sub-Registrar Kalol.
Therefore, the plaintiffs who have already
signed the sale deed cannot now say that they
have signed the sale deed as a Power of
Attorney. It was also pointed out that in the
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suit filed by the appellants-plaintiffs, the
contents of the aforesaid registered sale
deed have not been disputed on any count, but
the sale deed is sought to be challenged only
on the ground that the said document has been
made to be signed by the plaintiffs under the
guise of Power of Attorney and without
consideration. It was submitted that
Declaration cum Indemnity Bond which are
containing identical contents to those
mentioned in the sale deed have never been
challenged by the plaintiffs, more
particularly, paragraph no.32 of the said
document refers to the aspect of sale of the
suit property by the sale deed in favour of
the defendant no.1.
5.2) It was submitted that none of the
signatures to the Acceptance Deed which was
sought to be cancelled in the plaint has
never been questioned by any one before any
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Court except by plaintiffs in the suit.
5.3) It was submitted that the Appellate
Court after re-appreciating the evidence has
come to the conclusion that the trial Court
committed an error by allowing the suit by
holding that Sale Deed dated 13.09.2005 was
without consideration and therefore, null and
void.
5.4) It was submitted that the trial
Court did not appreciate the evidence
properly as trial Court has given unnecessary
importance to negligent and irrelevant
description recorded in the cross examination
of defendant nos. 1 and 2 to hold that sale
deed was without consideration and was
executed fraudulently by shifting onus upon
defendant no.1 to prove the legality of the
registered sale deed in question instead of
the plaintiffs who are supposed to prove that
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defendant no.1 got the sale deed executed in
his favour fraudulently. It was submitted
that the scope in Second Appeal is very
narrow as per the settled legal position and
only substantial questions of law can be
considered without appreciating the evidence
on record. It was submitted that the
plaintiffs have not raised any question of
perversity with regard to the impugned
Judgment and Order passed by the Appellate
Court.
5.5) In support of his submissions,
reliance was placed in case of Dahiben v.
Arvindbhai Kalyanji Bhanusali (Gajra) Dead
Through Legal Representatives and others
reported in (2020) 7 Supreme Court Cases 366,
wherein it is held by the Apex Court that if
the plaintiffs had a genuine grievance of non
payment of sale consideration then action
could have been taken by the plaintiffs to
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recover but same could not be a ground for
cancellation of the sale deed as the
plaintiffs may have other remedies in law for
recovery of sale consideration but could not
be granted relief of cancellation of
registered sale deed. The Apex Court found
that the suit filed by the plaintiffs was
vexatious, meritless and does not disclose a
right to sue.
5.6) Reliance was also placed on the
decision in case of Rattan Singh and others
v. Nirmal Gill and others reported in 2020
SCC OnLine SC 936, wherein the Apex Court in
similar facts held that proof beyond
reasonable doubt is not a requirement of law
and when registered sale deed was not in
dispute, the burden was on the party denying
the receipt of sale price and onus to prove
that the sale consideration was not paid,
could not be placed on the defendants. The
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Apex Court while considering the aspect of
fraud in respect of documents i.e. General
Power of Attorney and Sale Deed executed in
the year 1990 held that even assuming that
the burden had shifted upon the defendants,
the witness identifying signatures of the
dead when attesting witness was
examined by the defendants then, the
documents stood proved and the burden was
duly discharged by the defendants. The Apex
Court therefore, held that the plaintiff was
obliged to rebut the positive evidence
produced by the defendants regarding payment
of consideration amount to the plaintiff; but
also ought to have independently proved
her case of non-receipt of the
consideration amount. It was therefore
submitted that in facts of the case, the
plaintiffs did not prove non receipt of
consideration and mere assertion in the oral
evidence is not sufficient as sought to be
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canvassed on behalf of the plaintiffs. It was
submitted that learned Appellate Judge has
therefore, rightly come to the conclusion
after re-appreciating the evidence by
negating the say of the plaintiffs in view of
provisions of section 54 of Transfer of
Property Act which defines "Sale" as transfer
or ownership in exchange for a price paid or
promised or part paid and part promised. The
Appellate Court therefore, considering para
24 of the registered sale deed at Exh. 101
and 126 came to the conclusion that sale
price of the subject land was received in
piece-meal by the plaintiffs from defendant
no.1 and thereafter the defendant no.1 was
put in possession.
5.7) Learned Senior Advocate Mr. Kamal
Trivedi also referred to the deposition of
the witness of the defendant Thakor
Ranchhodji Budaji at Exh.140, wherein he has
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specifically stated that the subject land is
in possession of the defendant No.1 and he is
working as watchman for about last seven
years. It was submitted that defendant no.1
was put in possession after execution of the
sale deed on payment of sale consideration to
the plaintiffs. Reference was also made to
the evidence of plaintiff no.1 Trivedi
Kalidas Umiyashankar at Exh.90, wherein he
has also admitted that defendant No.1 and his
legal heirs are in possession of the subject
land and he has not challenged mutation entry
no.6465 wherein names of Defendant No.1
wherein names of legal heirs have been
entered since 13.01.2006 and running till
today.
5.8) With regard to issue of limitation,
it was submitted by learned Senior Advocate
Mr. Trivedi that the Appellate Judge after
scrutiny of the record and the impugned
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judgment referred to the written statement at
Exh.33 filed by the defendants raising bar of
limitation which was not considered by the
trial Court in view of allegation of fraud
pleaded by the plaintiffs that they came to
know about the alleged fraud in the year 2008
on receipt of index of sale deed. It was
submitted that the Appellate Judge taking
note of such issue examined the question on
law and facts and held that trial Court has
ignored the same resulting into miscarriage
of justice. It was in this context that the
Appellate Court held that suit filed by the
plaintiffs was barred by limitation reversing
the findings of the trial Court in light of
facts on record. It was submitted that the
learned Appellate Court has not decided the
issue of limitation but has specifically
referred to the same being lacuna in the
Judgment and Decree passed by the trial
Court.
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5.9) Learned Senior Advocate Mr. Kamal
Trivedi submitted that the Appellate Court
after re-appreciating the evidence has come
to the conclusion that it was not proved by
the plaintiffs that no consideration was paid
and it is the case of the defendants that the
amount of consideration was paid in piece-
meal to the plaintiffs by the defendant no.1
and even if some amount remained unpaid then
in that case also as per the settled legal
position, registered sale deed could not have
been declared as null and void and the
appellants-plaintiffs could have filed the
suit for recovery of unpaid amount of
consideration.
6.Heard the learned advocates for the
respective parties and considered the paper
book filed on behalf of the respondents
containing all the documents on record, copy
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of plaint, written statement, oral evidence
of the plaintiff, oral evidence of the
defendants, copy of Sale Deed, Acceptance
Deed, Power of Attorney and Declaration cum
Indemnity Bond etc.
7.Considering the impugned Judgment and Decree
passed by the trial Court which is reversed
by the impugned Judgment and order passed by
the Appellate Court as well as the oral and
documentary evidence placed on record, it
emerges that in the suit filed by the
appellants-plaintiffs for cancellation of
sale deed on the ground of fraud and non
receipt of Rs. 9,48,500/-, onus to prove that
sale deed was fraudulent and without
consideration was upon the appellants -
plaintiffs by adducing clinching and cogent
evidence.
8.It is well settled that when allegation of
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fraud is levelled, it must be pleaded in no
uncertain terms supported by evidence to be
proved by the party alleging such fraud to
demonstrate as to the manner in which fraud
was played upon the plaintiffs.
9.On perusal of the Judgment and Decree passed
by the trial Court, it appears that the trial
Court relied upon the deposition and cross
examination of defendant no.1/2 Shaileshbhai
Fakirbhai Thakore at Exh.113 wherein he has
denied the allegation of fraud and stated
that the amount of consideration of
Rs.9,48,500/- was paid in piece-meal.
Ignoring such evidence trial Court unduly
gave importance to the fact that defendant
no.1 did not specifically submit how the
amount of consideration was given, on which
date and to whom it was so given and where it
was given. Whereas on the other hand, the
deposition and cross examination of the
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plaintiff at Exh.90 was ignored wherein it is
admitted by the plaintiff that defendant no.1
is in possession of the suit property and
there was no evidence on record to prove the
allegation of fraud and cheating in respect
of execution of registered sale deed
No.2633/2005. Learned Appellate Judge has
therefore, rightly held that trial court
could not have shifted the burden of proof
upon defendant no.1 to prove the legality of
the registered sale deed in question as it is
not in dispute that the sale deed was
registered before the office of Sub-Registrar
and the mutation entry to that effect was
made in revenue record in the year 2006 which
is not challenged by the plaintiffs.
10. It is also not in dispute that the
registered sale deed No.2633/2005 contained
signature of plaintiff no.1 Shri Kalidas
Umiyashankar Trivedi who was working as a
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peon in Ahmedabad Municipal Corporation as
admitted by him in his cross examination at
Exh.90. Plaintiff no.1 would have been well
aware about the difference between Power of
Attorney, Agreement to Sale and Sale Deed and
could not have signed the sale deed in guise
of Power of Attorney without verifying the
contents of the Power of Attorney. The
Appellate Court therefore, came to the
conclusion that it could not have been
inferred that signature of plaintiff no.1 was
obtained under guise of Power of Attorney or
Agreement to Sale. Moreover, the plaintiffs
have not initiated any other proceedings
except filing the suit for cancellation of
the sale deed. The Appellate Court has
therefore, rightly held that in view of the
deposition and cross examination of plaintiff
no.1 at Exh.90, if the fraud and cheating
were played by defendant no.1 and others,
then plaintiff no.1 would have definitely
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filed a criminal complaint. The glaring fact
that defendant no.1 is in possession of the
suit property is also considered by the
Appellate Court as a relevant factor to hold
that if no registered sale deed was executed
in favour of the defendant no.1-deceased
Fakirji Mafaji, he would not have been put
into possession of the subject land.
11. The learned Appellate Judge after
appreciating the deposition of plaintiff no.1
also analysed the cross examination wherein
he has stated that Umiyashankar had five
sons and two daughters and all seven heirs
were having their shares in the properties of
Umiyashankar and all the heirs are not joined
in the suit and therefore, it was rightly
held that suit was suffering from bar of non
joinder of parties. Similarly names of legal
heirs of late Fakirji are reflected in
village Form 7 and 12 of the subject land
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till date which is never challenged by the
plaintiffs.
12. On perusal of the sale deed produced on
record at Exh.101 it appears that late
Fakirji had signed as purchaser whereas late
Dashrathbhai Umiyashankar Trivedi and Shri
Kalidas Umiyashankar Trivedi had signed as
sellers of the subject land whereas
Pravinchandra Umiyashankar Trivedi signed as
confirming party. Moreover, with regard to
sale consideration stated in the sale deed
the same is referred to payment made in
piece-meal.
13. Moreover on perusal of the sale deed it
appears that Kalidas Umiyashankar Trivedi
signed on his behalf as well as Power of
Attorney Holder of Chandrakant Ramkrushna
Tripathy and Jaydev Ramkrushna Tripathy.
However only Chandrakant Ramkrushna Tripathy
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has been joined as plaintiff no.3 herein,
whereas Jaydev Ramkrushna Tripathi was joined
as defendant no.2 and confirming party
Pravinchandra Umiyashankar Trivedi was joined
as defendant no.3.
14. Thus, all the sellers who have signed
the sale deed are not aggrieved by the
registered sale deed and only plaintiff no.1
and legal heirs of late Dashrathbhai
Umiyashankar Trivedi and Chandrakant
Ramkrushna Tripathi are aggrieved by alleged
fraud and cheating and non receipt of sale
consideration without there being anything on
record as to why other signatories to the
sale deed have not joined the plaintiffs in
making such allegations.
15. In view of above facts, it cannot be
said that Appellate Court has committed any
error while reversing the Judgment and Decree
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passed by the trial Court holding that
plaintiff no.1 and other signatories had
executed sale deed No.2633/2005 in favour of
defendant no.1 late Thakor Fakirji Mafaji and
since then he was handed over the possession
of the subject land in which after his demise
his legal heirs are having uninterrupted
possession.
16. The Appellate Court has also considered
the fact that the plaintiff no.3
Chandrakantbhai Ramkrushna Tripathy and
defendant no.3 Pravinchandra Umiyashnakar
Trivedi did not step into the witness box in
support of claim made by the plaintiffs in
the plaint together with averments made in
para 24 of the sale deed to the effect that
entire sale consideration of Rs. 9,48,500/-
is paid in piece-meal and the signatories to
the sale deed have acknowledged the payment
of full sale consideration received from
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defendant no.1.
17. Section 54 of the Transfer of Property
Act defines sale as under:
"54. "Sale" is a transfer or ownership in exchange for a price paid or promised or part-paid and part-promised."
18. In view of above definition of sale and
considering para no.24 of the sale deed at
Exh.101 and Deed of Acceptance at Exh. 127
which is also a registered deed with the
office of Registrar at Serial No. 2364,
wherein similar fact is stated about the sale
and consideration paid by the defendant no.1
and accepted by all the legal heirs of the
persons who have signed the sale deed,
clearly shows that registered sale deed was
executed for transfer of suit property in
exchange of price paid.
19. The Appellate court after re-
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appreciating the evidence has held as under :
"22. On the basis of above discussion and after re- appreciating the factual matrix and the evidence on record, Ld. Trial Court appears to have committed manifest error and has misapplied the settled legal position. Again, It is required to be noted that the plaintiff pleaded fraud in very vague manner in the plaint but in the evidence, they were not able to prove the same. When the registered sale deed was executed and brothers of the plaintiffs were also there and did not join the plaintiffs in the suit and thus joining them as proforma defendants by the plaintiffs, is self-speaking about the intentions of the plaintiffs. Therefore, it can safely be said that after execution of registered sale deed, plaintiff remained silent and did not ask anything about the sale deed or even mutation entries and on one fine morning, they seem to have thought of filing the suit in name of fraud in which they miserably failed.
However, the Ed. Trial Court unfortunately relied upon the evidence and more particularly cross examination of Defendant No.1 /2 who is son of original Defendant No.1. It is true that in his cross examination certain discrepancies, more particularly
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In respect to measurement of certain portions of lands is recorded but when the document was very much there on record only that would have prevailed and as such not believing the same having been executed genuinely, Ld. Trial Court has definitely erred in arriving at final conclusion. The findings arrived at by Ld. Trial Court are lacking proper application of law of evidence where it was necessary to see that on whom the onus of proof lies. Since, the registered document having been signed by the plaintiff was very much there the Ld. Trial Court ought not to have been influenced under concocted story produced by the plaintiff that his entire family was called at the office of Sub Registrar, Kalol and were made to sign dubious document. This could never have happened in light of the evidence as discussed earlier. Therefore, the Ld. Trial Court ought to have guided itself by the certain settled legal principles that a document is presumed to be genuine if the same is registered. In catena of case-law Hon. The Apex Court has time and again reiterated that there is a presumption that the registered document is validly executed. A registered document, therefore, prima facie would be valid in law. The onus of proof, thus, would be on a person who
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leads evidence to rebut the presumption. Hence, in light of this settled law the plaintiffs were not able to rebut the said presumption and as such the initial onus was on them as they challenged the registered document and failure on their side to prove that is not considered by the Ld. Trial Court. It is crystal clear on record that the plaintiff did not discharge that onus and shifted it on the defendants and as has been discussed earlier, on the principle of preponderance of probability, the plaintiffs though miserably failed to bring home their case. Ld. Trial Court definitely erred in arrival at final conclusion. In this regard, section 101 of the Indian Evidence Act is also clear which casts initial burden on the plaintiff. In light of this provision also, the burden of proving the fact was on the plaintiff but the Ld. Trial Court proposed to decide the suit on the basis of the evidence of the Defendant and more particularly on his cross examination. At this juncture, on having perused the case-law cited by Ld. Advocate of the appellants from Dahiben V/s Arvindbhal Kalyanji Bhanushali (Gajra) (D) through LRs and others (Supra). It must be noted that looking to the order portion para 2 passed by the Ld.
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Trial Court. It is stated that "It is hereby declared that the registered sale-deed no.2633 which is registered in office of Sub-Registrar, Kalol on dt.13.09.2005, is without consideration and therefore null and void". This order of the Ld.
Trial Court is also
unfortunately in gross mis-
interpretation of the evidence as discussed above. It seems that the said order makes it clear that the registered sale deed is declared null and void in name of the same being without consideration. Hence in this regard, the case-law from Dahlben V/s Arvindbhal Kalyanji Bhanushall (Gajra) (D) through LRs and others (Supra) is very much clear and perfectly applicable to the case of the appellant. At this Juncture, it would be appropriate to note that in the said case-law, the plaintiffs had made out a case of alleged non-payment of a part of the sale consideration in the plaint, and prayed for relief of cancellation of the sale deed on that ground. In the case on hand. It was clear that plaintiffs alleged fraud and clubbed that plea with non-
payment of consideration also. However, fact remains that fraud was definitely not proved and as discussed earlier amount of consideration in piece-meal was definitely paid. Assuming that
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some amount remained unpaid, then in that case also, as per the said case-law, the Ld. Trial Court ought not to have declared the registered sale deed null and void. In this regard, it would be appropriate to reproduce specific portion of the case-law at page 17 which is as under:
"......In Vidyadhar V/s Manukrao & Anr (1999)3-SCC-573, this court held that the words "price paid or promised or part paid and part promised" indicates that actual payment of the whole of the price at the time of the execution of the sale deed is not a sine qua non for completion of the sale. Even if the whole of the price is not paid, but the document is executed, and thereafter registered, the sale would be complete, and the title would pass onto the trespasser under the transaction. The non-payment of a part of the sale price would not affect the validity of the sale. Once the title in the property has already passed, even if the balance sale consideration is not paid, the same could not be invalidated on this ground. In order to constitute a "sale", the parties must intend to transfer the ownership of the property, on the agreement to pay the price either in present or in future.
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The intention is to be gathered from the recitals of the sale deed, the conduct of the parties, and the evidence on record."
The case-law, thus, makes it amply clear that in case of non-
payment of consideration, plaintiffs were supposed to file a suit for recovery of that amount, but declaration about the said registered sale deed as passed by Ld. Trial Court was not in consonance with the law and thus in mis-interpretation of the facts and law. At the cost of repetition, it must be noted that when fraud and non- payment of consideration were not proved, assuming that the entire sale consideration had not in fact been paid, it could definitely not a ground for cancellation of the registered sale deed. At this juncture, it may also be noted that the arguments advanced by Ld.
Advocate of the appellant in light of the above case-law is very much convincing to believe that the impugned judgment and decree requires interference in this appeal. The argument of Ld. Advocate of the Defendants as mentioned earlier is found general in nature and no specific argument is canvassed as to why the impugned judgment is sustainable in the law.
Therefore, after having gone
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through the complete re-
appreciation of the evidence in light of the settled law, points of determination No.1 to 3 are replied in affirmative and in reply to point no.4 following is the final order."
20. In view of above findings arrived at by
the Appellate Court decision relied upon by
learned advocate for the appellant in case of
Gangabai v. Chhabubai (supra) would not be
applicable as in the said case, issue was
with regard to applicability of section 92 of
the Evidence Act for admission of oral
evidence in absence of documentary evidence.
In facts of the case, oral evidence of
plaintiff no.1 is required to be looked into
as onus to prove that sale deed was by fraud
and cheating, could not have been shifted
upon the defendants. Similarly decision in
case of Bhupendra Shantilal Shah (supra) is
also not applicable in facts of the case as
the appellants plaintiffs have failed to
prove that transaction was not bona fide and
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genuine more particularly, when intrinsic
evidence on record clearly points out that
transaction was bona fide. In view of
findings of fact recorded by the Appellate
Court, in Second Appeal, no further
appreciation of the evidence is required in
absence of any pleading or issue raised with
regard to perversity of such findings. Even
independently findings arrived at by learned
Appellate Judge cannot be said to be perverse
in any manner on perusal of the documentary
and oral evidence on record.
21. Reliance placed on decision of Veljibhai
Mavjibhai Mistry (supra) by the learned
advocate for the appellants is also without
any basis inasmuch as in light of the
provisions of Order VI Rule 4 read with
provisions of section 100 of the Evidence
Act, in the deposition and cross examination
of plaintiff no.1 clearly admits with regard
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to signature on the sale deed as well handing
over the possession coupled with Exh.127 of
the Acceptance Deed registered by plaintiff
no.1 and other plaintiffs and therefore, mere
oral assertion of fraud and cheating in
absence of any further corroborative evidence
cannot be considered by shifting the burden
of proof upon the defendants to prove the
contrary without other signatories to the
sale deed having stepped into witness box in
support of the plaintiffs.
22. The Hon'ble Supreme Court in case of
Dahiben(supra) with regard to issue of
cancellation of registered sale deed has held
as under:
"29.1 On a reading of the plaint and the documents relied upon, it is clear that the Plaintiffs have admitted the execution of the registered Sale Deed dated 02.07.2009 in favour of Defendant
of the plaint reads as :
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"(5) ...Thus, subject of the aforesaid terms the plaintiffs had executed sale deed selling the suit property to the opponent no.1 vide sale deed dated 02/07/2009 bearing Sr.No. 5158..."
29.2 The case made out in the Plaint is that even though they had executed the registered Sale Deed dated 02.07.2009 for a sale consideration of Rs.1,74,02,000, an amount of only Rs.40,000 was paid to them. The remaining 31 cheques mentioned in the Sale Deed, which covered the balance amount of Rs.1,73,62,000 were alleged to be "bogus" or "false", and allegedly remained unpaid. We find the averments in the Plaint completely contrary to the recitals in the Sale Deed dated 02.07.2009, which was admittedly executed by the Plaintiffs in favour of Respondent No.1. In the Sale Deed, the Plaintiffs have expressly and unequivocally acknowledged that the entire sale consideration was "paid" by Defendant No.1/Respondent No.1 herein to the Plaintiffs.
xxxx 29.6 The Plaintiffs have made out a case of alleged nonpayment of a part of the sale consideration in the Plaint, and prayed for the relief of cancellation of the Sale Deed on this ground.
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29.7 Section 54 of the Transfer of Property Act, 1882 provides as under:
"54. 'Sale' defined.-'Sale' is a transfer of ownership in exchange for a price paid or promised or part-paid and part- promised."
The definition of "sale" indicates that there must be a transfer of ownership from one person to another i.e. transfer of all rights and interest in the property, which was possessed by the transferor to the transferee. The transferor cannot retain any part of the interest or right in the property, or else it would not be a sale. The definition further indicates that the transfer of ownership has to be made for a "price paid or promised or part paid and part promised". Price thus constitutes an essential ingredient of the transaction of sale.
29.8 In Vidyadhar v. Manikrao & Anr., (1999) 3 SCC 573, this Court held that the words "price paid or promised or part paid and part promised" indicates that actual payment of the whole of the price at the time of the execution of the Sale Deed is not a sine qua non for completion of the sale. Even if the whole of the price is not paid, but the document is executed, and thereafter registered, the sale
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would be complete, and the title would pass on to the transferee under the transaction. The non- payment of a part of the sale price would not affect the validity of the sale. Once the title in the property has already passed, even if the balance sale consideration is not paid, the sale could not be invalidated on this ground. In order to constitute a "sale", the parties must intend to transfer the ownership of the property, on the agreement to pay the price either in present, or in future. The intention is to be gathered from the recitals of the sale deed, the conduct of the parties, and the evidence on record.
29.9 In view of the law laid down by this Court, even if the averments of the Plaintiffs are taken to be true, that the entire sale consideration had not in fact been paid, it could not be a ground for cancellation of the Sale Deed. The Plaintiffs may have other remedies in law for recovery of the balance consideration, but could not be granted the relief of cancellation of the registered Sale Deed. We find that the suit filed by the Plaintiffs is vexatious, meritless, and does not disclose a right to sue. The plaint is liable to be rejected under Order VII Rule 11
(a).
xxxx 29.12 On a reading of the plaint, it is clear that the cause of action
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arose on the non-payment of the bulk of the sale consideration, which event occurred in the year 2009. The plea taken by the Plaintiffs is to create an illusory cause of action, so as to overcome the period of limitation. The plea raised is rejected as being meritless and devoid of any truth.
29.13 The conduct of the Plaintiffs in not taking recourse to legal action for over a period of 5 and years from the execution of the Sale Deed in 2009, for payment of the balance sale consideration, also reflects that the institution of the present suit is an after-thought. The Plaintiffs apparently filed the suit after the property was further sold by Respondent No.1 to Respondent Nos. 2 and 3, to cast a doubt on the title of Respondent No.1 to the suit property.
xxxx 29.15 If the Plaintiffs had a genuine grievance of nonpayment of the balance sale consideration, the Plaintiffs could have moved for revocation of the permission granted by the Collector on 19.06.2009. Clause 6 of the Order provided that :
"(6) On making violation of any of the aforesaid terms, the permission shall automatically be treated as cancelled and, separate proceeding shall be
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taken up for the violation of the terms and conditions."
The Plaintiffs did not make any complaint whatsoever to the Collector at any point of time. The conduct of the Plaintiffs is reflective of lack of bona fide."
23. The Apex Court in case of Rattan Singh
and others (supra)has held as under:
"42. The trial Court had justly placed the initial burden of proof upon the plaintiff as it was her case that the subject documents were forged or product of fraud and more so because the documents bore her signature. The first appellate Court did not elaborate on that aspect. Even assuming that the burden had shifted upon the defendants, the witness identifying signatures of the dead attesting witness was examined by the defendants. Therefore, the documents stood proved and the burden was duly discharged by the defendants.
66. The plaintiff also asserted that she had not received the consideration in relation to the stated transactions and that the defendants had no means to pay the
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consideration. It has come on record that the defendants had mortgaged the joint lands several times as they were in need of money. Further, the defendant No. 4 after admitting to have mortgaged the land had said that he used that money to install tubewells and buy tractors. The said fact does not conclusively prove that they did not possess funds as the said loans were obtained to make investments on the joint lands and not on the personal property of the defendant No. 4.
had deposed that the sale
consideration was paid from
the sale proceeds received by
selling the land of their mother in the village Ashrafpur. Since the attesting witness had proved the execution of the sale deeds, the primary onus upon the plaintiff had not shifted unto the defendants. Further, the plaintiff was obliged to rebut the positive evidence produced by the defendants regarding payment of consideration amount to the plaintiff; but also ought to have independently proved her case of nonreceipt of the consideration amount."
24. It is a trite law that while considering
the decision of the Appellate Court as per
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provisions of section 100 of the Code, no
further appreciation of oral and documentary
evidence can be made in second appeal and
only substantial questions of law can be
considered and as such there is a very narrow
scope while considering second appeal as held
by the Apex Court in the following decisions:
(i) Afsar Sheikh v. Soleman Bibi reported in
(1976) 2 SCC 142, wherein it is held as
under:
"19. The scope of the powers of the High Court to interfere in second appeal with judgments and decrees of courts below is indicated in Sections 100, 101, and 103 of the Code of Civil Procedure. Broadly, the effect of Sections 100 and 101, read together, is that a second appeal is competent only on the ground of an error in law or procedure, and not merely on the ground of an error on a question of fact. The High Court has no jurisdiction to entertain a second appeal on the "ground of an erroneous finding of fact, however gross or inexcusable the error may seem to be" (Durga Choudhrani v. Jawahar Singh [17 IA
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122 : ILR 18 Cal 23 (PC)] ). Section 103 enables the High Court in second appeal, where the evidence on the record is sufficient, to determine an issue of fact necessary for the disposal of the appeal only--
(a) if the lower appellate Court has not determined that issue of fact, or
(b) if it has determined that issue wrongly by reason of any illegality, omission, error or defect such as is referred to in sub-section (1) of Section 100."
(ii) Hero Vinoth v. Seshammal, reported
in (2006) 5 SCC 545, wherein it is held as
under:
"18. It has been noted time and again that without insisting for the statement of such a substantial question of law in the memorandum of appeal and formulating the same at the time of admission, the High Courts have been issuing notices and generally deciding the second appeals without adhering to the procedure prescribed under Section 100 CPC. It has further been found in a number of cases that no efforts are made to distinguish between a question of law and a substantial question of law. In exercise of the powers under this section in several cases, the
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findings of fact of the first appellate court are found to have been disturbed. It has to be kept in mind that the right of appeal is neither a natural nor an inherent right attached to the litigation. Being a substantive statutory right, it has to be regulated in accordance with law in force at the relevant time. The conditions mentioned in the section must be strictly fulfilled before a second appeal can be maintained and no court has the power to add or to enlarge those grounds. The second appeal cannot be decided on merely equitable grounds. The concurrent findings of facts will not be disturbed by the High Court in exercise of the powers under this section. Further, a substantial question of law has to be distinguished from a substantial question of fact. This Court in Sir Chunilal V. Mehta and Sons Ltd. v. Century Spg. & Mfg. Co. Ltd. [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] held that : (SCR pp.
557-58)
"The proper test for determining whether a question of law raised in the case is substantial would, in our opinion, be whether it is of general public importance or whether it directly and substantially affects the rights of the parties and if so whether it is either an open question in the sense that it is not finally settled by this Court or by the
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Privy Council or by the Federal Court or is not free from difficulty or calls for discussion of alternative views.
If the question is settled by the highest court or the general principles to be applied in determining the question are well settled and there is a mere question of applying those principles or that the plea raised is palpably absurd the question would not be a substantial question of law."
xxxx
21. The phrase "substantial question of law", as occurring in the amended Section 100 CPC is not defined in the Code. The word substantial, as qualifying "question of law", means-- of having substance, essential, real, of sound worth, important or considerable. It is to be understood as something in contradistinction with--technical, of no substance or consequence, or academic merely. However, it is clear that the legislature has chosen not to qualify the scope of "substantial question of law" by suffixing the words "of general importance" as has been done in many other provisions such as Section 109 of the Code or Article 133(1)(a) of the Constitution. The substantial question of law on which a second appeal shall be heard need not necessarily be a substantial question of law of general
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importance. In Guran Ditta v. Ram Ditta [(1927-28) 55 IA 235 : AIR 1928 PC 172] the phrase "substantial question of law" as it was employed in the last clause of the then existing Section 100 CPC (since omitted by the Amendment Act, 1973) came up for consideration and their Lordships held that it did not mean a substantial question of general importance but a substantial question of law which was involved in the case. In Sir Chunilal case [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] the Constitution Bench expressed agreement with the following view taken by a Full Bench of the Madras High Court in Rimmalapudi Subba Rao v. Noony Veeraju [AIR 1951 Mad 969 : (1951) 2 MLJ 222 (FB)] : (Sir Chunilal case [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] , SCR p. 557)
"[When a question of law is fairly arguable, where there is room for difference of opinion on it or where the Court thought it necessary to deal with that question at some length and discuss alternative views, then the question would be a substantial question of law. On the other hand if the question was practically covered by the decision of the highest court or if the general principles to be applied in determining the question are well settled and the only question was of applying those principles to the
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particular fact of the case it would not be a substantial question of law."
This Court laid down the following test as proper test, for determining whether a question of law raised in the case is substantial : (Sir Chunilal case [1962 Supp (3) SCR 549 : AIR 1962 SC 1314] , SCR pp. 557-
58)
"The proper test for determining whether a question of law raised in the case is substantial would, in our opinion, be whether it is of general public importance or whether it directly and substantially affects the rights of the parties and if so whether it is either an open question in the sense that it is not finally settled by this Court or by the Privy Council or by the Federal Court or is not free from difficulty or calls for discussion of alternative views.
If the question is settled by the highest court or the general principles to be applied in determining the question are well settled and there is a mere question of applying those principles or that the plea raised is palpably absurd the question would not be a substantial question of law."
22. In Dy. Commr. v. Rama Krishna Narain [1954 SCR 506 : AIR 1953 SC
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521] also it was held that a question of law of importance to the parties was a substantial question of law entitling the appellant to a certificate under (the then) Section 100 CPC.
23. To be "substantial" a question of law must be debatable, not previously settled by law of the land or a binding precedent, and must have a material bearing on the decision of the case, if answered either way, insofar as the rights of the parties before it are concerned. To be a question of law "involving in the case" there must be first a foundation for it laid in the pleadings and the question should emerge from the sustainable findings of fact arrived at by court of facts and it must be necessary to decide that question of law for a just and proper decision of the case. An entirely new point raised for the first time before the High Court is not a question involved in the case unless it goes to the root of the matter. It will, therefore, depend on the facts and circumstance of each case whether a question of law is a substantial one and involved in the case or not, the paramount overall consideration being the need for striking a judicious balance between the indispensable obligation to do justice at all stages and impelling necessity of avoiding prolongation in the life of any lis. (See Santosh
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Hazari v. Purushottam Tiwari [(2001) 3 SCC 179] .)
24. The principles relating to Section 100 CPC relevant for this case may be summarised thus:
(i) An inference of fact from the recitals or contents of a document is a question of fact. But the legal effect of the terms of a document is a question of law. Construction of a document involving the application of any principle of law, is also a question of law. Therefore, when there is misconstruction of a document or wrong application of a principle of law in construing a document, it gives rise to a question of law.
(ii) The High Court should be satisfied that the case involves a substantial question of law, and not a mere question of law. A question of law having a material bearing on the decision of the case (that is, a question, answer to which affects the rights of parties to the suit) will be a substantial question of law, if it is not covered by any specific provisions of law or settled legal principle emerging from binding precedents, and, involves a debatable legal issue. A substantial question of law will also arise in a contrary situation, where the legal position is clear, either on account of express provisions of law or binding precedents, but the court below has
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decided the matter, either ignoring or acting contrary to such legal principle. In the second type of cases, the substantial question of law arises not because the law is still debatable, but because the decision rendered on a material question, violates the settled position of law.
(iii) The general rule is that High Court will not interfere with the concurrent findings of the courts below. But it is not an absolute rule. Some of the well-recognised exceptions are where (i) the courts below have ignored material evidence or acted on no evidence; (ii) the courts have drawn wrong inferences from proved facts by applying the law erroneously; or (iii) the courts have wrongly cast the burden of proof. When we refer to "decision based on no evidence", it not only refers to cases where there is a total dearth of evidence, but also refers to any case, where the evidence, taken as a whole, is not reasonably capable of supporting the finding."
(iii) Gurvachan Kaur v. Salikram, reported in
(2010) 15 SCC 530, wherein it is held as un-
der:
"10. It is settled law that in exercise of power under Section 100 of the Code of Civil Procedure, the
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High Court cannot interfere with the finding of fact recorded by the first appellate court which is the final court of fact, unless the same is found to be perverse. This being the position, it must be held that the High Court was not justified in reversing the finding of fact recorded by the first appellate court on the issues of existence of landlord-tenant relationship between the plaintiff and the defendant and default committed by the latter in payment of rent."
25. In view of above conspectus of law and facts
emerging from record, the registered sale deed
could not have been set aside by the trial Court
as null and void and therefore, the impugned
Judgment and order passed by the Appellate Court
is just and proper and requires no interference
in view of provisions of section 100 of the Code.
No question of law much-less any substantial
question of law arises from the impugned Judgment
and Order passed by the Appellate Court in
Regular Civil Appeal No. 87 of 2019.
26. The appeal therefore, being devoid of any
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merit is accordingly dismissed. No order as to
costs.
27. In view of above, Civil Application also
stands disposed of.
(BHARGAV D. KARIA, J) RAGHUNATH R NAIR
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