2007 (8) TMI 834 - SC - Indian Laws

Validity of sale deed challenged for unsoundness of mind and unconscionable consideration; appellate factual findings restored.

Sale deed executed 11.7.1983 was challenged on grounds of lack of testamentary capacity and unconscionability. Evidence including a medical certificate ... - Issues: Whether the sale deed dated 11.7.1983 (Ext.A3) is vitiated by fraud/unsoundness of mind and liable to be set aside; and whether the High Court in second appeal erred in interfering with the First Appellate Court's factual findings.Analysis: The First Appellate Court found, on evidence including medical certificate Ext.A4 showing treatment for alcoholic psychosis and the markedly inadequate consideration (one cent sold earlier for Rs.18000 while three cents sold later for Rs.1000), that the vendor lacked sound mind when executing Ext.A3 and that the transaction was unconscionable. Section 96 CPC permits the First Appellate Court to reappraise facts, whereas Section 100 CPC confines a second appeal to questions of law and precludes reappraisal of findings of fact. The factual findings of unsoundness of mind and corroborative disparity in consideration were substantive and supported by the record; therefore they were not open to interference in second appeal.Conclusion: The sale deed dated 11.7.1983 is quashed; the High Court's order setting aside the First Appellate Court's decree is set aside and the First Appellate Court's judgment dated 29.6.1988 is restored in favour of the appellants.