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        Case ID :

        2000 (3) TMI 1077 - SC - Indian Laws

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        Fraud vitiates awards and orders, allowing tribunals to recall their own decisions and examine the allegation on merits. An award or order obtained by fraud is a nullity and may be recalled or set aside by the same tribunal or court in exercise of inherent powers, even where ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Fraud vitiates awards and orders, allowing tribunals to recall their own decisions and examine the allegation on merits.

                            An award or order obtained by fraud is a nullity and may be recalled or set aside by the same tribunal or court in exercise of inherent powers, even where no express review power exists. Where newly discovered material suggests the claim itself may have been fabricated, the forum is competent to reopen the matter so the fraud allegation can be examined on merits. A writ court should not decline consideration of such a grievance merely by treating it as a pure question of fact when the allegation goes to the root of the proceedings and indicates possible abuse of process. The refusal to entertain the fraud plea was held unsustainable, and the awards were quashed for fresh reconsideration.




                            Issues: Whether an award or order obtained by fraud can be recalled or set aside by the tribunal or court in exercise of its inherent powers, and whether refusal to examine a serious allegation of fraud was legally sustainable.

                            Analysis: A judgment or award obtained by fraud is treated as a nullity and can be challenged even in collateral proceedings. The inherent power of a court or tribunal is not excluded merely because the statute does not provide an express review power. Where newly discovered facts indicate that the very basis of the claim may have been fabricated, the tribunal or court is competent to recall its own order so that the allegation of fraud can be examined on merits. A writ court ought not to refuse consideration of such a grievance merely by labelling it a question of fact when the allegation goes to the root of the proceedings and concerns abuse of process.

                            Conclusion: The appeals were allowed, the refusal to entertain the fraud plea was held unsustainable, and the awards were quashed with a direction that the claims be reconsidered afresh after giving both sides an opportunity to lead material on the fraud allegation.

                            Ratio Decidendi: An order or award procured by fraud can be recalled or set aside by the adjudicating forum itself under its inherent powers, because fraud vitiates the proceeding and renders the resulting decision a nullity.


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