TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court overturns appellate decision, reinstates trial court ruling for plaintiffs. Errors found in fraud plea acceptance.</h1> <h3>Asghar Ali and Ors. Versus Chidda</h3> The High Court allowed the appeal, setting aside the appellate court's decree and restoring the trial court's decree in favor of the plaintiffs. The court ... - Issues Involved:1. Specific performance of contract2. Allegation of fraud3. Bona fide purchaser for value without notice4. Procedural error in the appellate court5. Evaluation of evidenceDetailed Analysis:1. Specific Performance of Contract:The plaintiffs filed a suit for specific performance, asserting that Said Mohammad, one of the defendants, was the Bhumidhar of certain plots and had agreed to sell the land to them for Rs. 4,000, receiving Rs. 2,000 as earnest money. However, Said Mohammad later sold the land to Chidda Khan for Rs. 5,000, despite the prior agreement with the plaintiffs. The trial court decreed in favor of the plaintiffs, but the appellate court reversed this decision, leading to the plaintiffs' appeal.2. Allegation of Fraud:Said Mohammad contested the suit, claiming his signatures on the agreement were obtained through fraud, stating they were taken on blank stamp papers. The appellate court accepted this plea without requiring detailed particulars of the alleged fraud, which was a procedural error. The plaintiffs argued that the lack of specific particulars of fraud in the written statement violated Rule 4 of Order 6 of the Civil Procedure Code (CPC), which mandates detailed particulars in cases of fraud.3. Bona Fide Purchaser for Value Without Notice:Chidda Khan contended he was a bona fide purchaser for value without notice of the prior agreement. The appellate court's finding that Chidda Khan was a bona fide purchaser was consequential on the acceptance of the fraud plea. The plaintiffs argued that if the fraud plea was invalidated, the finding regarding Chidda Khan's bona fide status should also be set aside.4. Procedural Error in the Appellate Court:The appellate court considered new facts regarding the stamp papers used for the agreement, which were not raised in the trial court. This included claims that the date on the stamps appeared altered and overwritten. The plaintiffs had no opportunity to counter these claims, which were raised for the first time on appeal. This violated Rule 4 of Order 6 of the CPC, which aims to prevent such surprises and ensure fair trial procedures.5. Evaluation of Evidence:The appellate court's evaluation of evidence was influenced by its acceptance of the alleged defects in the stamp papers, leading to a biased assessment of the plaintiffs' witnesses. The court dismissed the testimony of the scribe and attesting witness based on unreasonable grounds, such as the scribe's inability to recall the exact date and the attesting witness living six miles away. This assessment was deemed perverse and unreasonable.Conclusion:The High Court found that the appellate court erred in accepting the fraud plea without specific particulars and in considering new facts about the stamp papers without giving the plaintiffs a chance to respond. The court also found the appellate court's evaluation of evidence to be biased and unreasonable. Consequently, the High Court allowed the appeal, set aside the appellate court's decree, and restored the trial court's decree in favor of the plaintiffs, granting them costs throughout.
TaxTMI 
TaxTMI 
