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        Case ID :

        1957 (7) TMI 46 - HC - Indian Laws

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        Fraud and limitation: Section 18 requires proof of fraud and lack of knowledge before time can be extended. Fraud will extend limitation under Section 18 of the Limitation Act only if it is specifically pleaded and proved to have kept the applicant from ...
                        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 and limitation: Section 18 requires proof of fraud and lack of knowledge before time can be extended.

                              Fraud will extend limitation under Section 18 of the Limitation Act only if it is specifically pleaded and proved to have kept the applicant from knowledge of the right to sue or apply. The court found the alleged village panchayat, said to have induced silence, was an afterthought and not proved, and the applicant already knew the sale date had been fixed. Section 18 was therefore not attracted, and limitation was not extended for challenging the execution sale on fraud grounds.




                              Issues: (i) Whether the alleged panchayat said to have induced the applicant to remain silent was true; (ii) whether Section 18 of the Limitation Act applied to extend limitation for setting aside the execution sale on the ground of fraud.

                              Issue (i): Whether the alleged panchayat said to have induced the applicant to remain silent was true.

                              Analysis: The application for condonation of delay rested on the assertion that a village panchayat had been held and that, acting on assurances said to have been given there, the applicant did not proceed in time to challenge the sale. On the evidence, the alleged arrangement was found to be an afterthought devised to support the plea for limitation. The factual foundation for invoking fraud was therefore not established.

                              Conclusion: The alleged panchayat was not proved.

                              Issue (ii): Whether Section 18 of the Limitation Act applied to extend limitation for setting aside the execution sale on the ground of fraud.

                              Analysis: Section 18 operates only where fraud has prevented knowledge of the right to sue or apply, and the party invoking it must prove the fraud and the resulting want of knowledge. The section is not satisfied by a mere allegation that the transaction was fraudulent. The court also applied the principle that fraud must be specifically pleaded and proved, and that limitation is extended only against the person guilty of fraud or persons claiming through him in the manner contemplated by the section. On the facts, the applicant was aware that the sale date had been fixed, and the evidence did not justify extension of time under the provision.

                              Conclusion: Section 18 was not attracted on the facts proved.

                              Final Conclusion: The revision failed because the delay was not shown to be excused by any proved fraud that kept the applicant from knowledge of his right to challenge the sale.

                              Ratio Decidendi: To attract Section 18 of the Limitation Act, fraud must be specifically pleaded and proved, and it must have kept the applicant from knowledge of the right to sue or apply; a mere allegation of fraud is insufficient.


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                              ActsIncome Tax
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