Supreme Court Upholds Suspension of Advocate for Professional Misconduct in Land Transfer Fraud. Misuse of Power of Attorney by Advocate to Transfer Client's Property to Advocate's Father Constitutes Professional Misconduct Under Advocates Act, 1961.

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Case Note & Summary

The Supreme Court dealt with an appeal under Section 38 of the Advocates Act, 1961, read with Order 5 of the Supreme Court Rules, 1966, filed by an advocate challenging the order of the Disciplinary Committee of the Bar Council of India. The appellant, Harish Chander Singh, was held guilty of professional misconduct and suspended from practice for two years. The matter arose from a complaint by one Daya Ram, forwarded by S.N. Tripathi, President of the Bar Association, Akbarpur, before the Bar Council of Uttar Pradesh. Daya Ram alleged that he had engaged the appellant as his counsel in a consolidation case concerning his land. The appellant persuaded him to execute a mukhtarnama (power of attorney) in favour of Syed Husain Ahmad, described as the appellant's junior. The complainant stated that the contents of the mukhtarnama were not read over to him; he executed it on faith. Subsequently, on 25th January 1972, Syed Husain Ahmad, acting as the complainant's mukhtar, executed a sale deed transferring the complainant's land to Nand Kishore Singh, who was the appellant's father. The complainant alleged that he was duped and deceived by both advocates. Syed Husain Ahmad, the co-delinquent, eventually admitted his role, pleaded inexperience, and sought pardon, but the appellant denied any knowledge of the transaction, claimed he was not staying with his father, and argued that Syed Husain Ahmad was not his junior. The Disciplinary Committee of the State Bar Council could not dispose of the complaint within one year, so the matter stood transferred to the Bar Council of India. The Bar Council of India's Disciplinary Committee recorded evidence and held the appellant guilty of professional misconduct, imposing a two-year suspension; Syed Husain Ahmad was reprimanded. The appellant appealed to the Supreme Court. The Court examined the oral and documentary evidence and found several tell-tale circumstances: the appellant was the complainant's counsel; the appellant persuaded the complainant to execute the mukhtarnama in favour of Syed Husain Ahmad; Syed Husain Ahmad executed the sale deed in favour of Nand Kishore Singh; Nand Kishore Singh was the appellant's father; the mukhtarnama dated 18th January 1972 gave full power to dispose of property; the sale deed dated 25th January 1972 was executed by Syed Husain Ahmad as agent of the complainant in favour of Nand Kishore Singh; and the Kutumb Register showed that Nand Kishore Singh and the appellant, father and son, lived in the same house. The appellant's attempts to show lack of knowledge or strained relations with his father failed because no evidence was produced. The Court held that these circumstances clearly pointed to the appellant's guilt and that the complainant was duped by his advocate who misused the confidence reposed in him. The suspension of two years was found to be neither harsh nor disproportionate. During the proceedings, the Court sought information about the sale deed and the parties, but the appellant's counsel could not provide an affidavit. Notices were issued to Daya Ram and Nand Kishore Singh regarding the impugned sale deed, but both were found dead, and it was revealed that the sale deed had already been held fictitious and not binding on Daya Ram by consolidation authorities. Consequently, the notices were discharged. The Supreme Court dismissed the appeal with costs and vacated the interim relief granted earlier.

Headnote

A) Professional Misconduct - Advocate-Client Relationship - Misuse of Power of Attorney to Transfer Client's Property to Advocate's Father - Advocates Act, 1961, Section 38 (appeal) and professional conduct rules - The appellant, engaged as counsel, persuaded the complainant client to execute a mukhtarnama in favour of his junior; the junior then executed a sale deed in favour of the appellant's father. Circumstantial evidence including the familial relationship, same village residence, and living together established the appellant's involvement. Held that the appellant duped the client and misused confidence reposed in him, constituting professional misconduct (Paras not mentioned).

B) Disciplinary Proceedings - Bar Council of India - Transfer of Complaint from State Bar Council - Advocates Act, 1961 - The complaint before the State Bar Council could not be disposed of within one year and stood transferred to the Bar Council of India. The Disciplinary Committee of Bar Council of India heard parties, recorded evidence, and found the appellant guilty. Held that the order was supported by tell-tale circumstances on record and suspension for two years was not disproportionate (Paras not mentioned).

C) Appeal under Section 38 - Scope of Review - Advocates Act, 1961, Section 38; Supreme Court Rules, 1966, Order 5 - The Supreme Court examined the evidence and found no reason to interfere with the disciplinary committee's findings. It also noted subsequent developments regarding the sale deed being held fictitious in consolidation proceedings. Held that the appeal lacked merit and was dismissed with costs, interim relief vacated (Paras not mentioned).

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Issue of Consideration

Whether the appellant advocate was guilty of professional misconduct by misusing the client's power of attorney to transfer property to his own father; and whether the two-year suspension imposed by the Disciplinary Committee of the Bar Council of India was sustainable.

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Final Decision

Appeal dismissed with costs. The order of the Disciplinary Committee of the Bar Council of India holding the appellant guilty of professional misconduct and suspending him from practice for two years was upheld. Interim relief granted during pendency was vacated.

Law Points

  • An advocate must maintain fiduciary loyalty to the client
  • misusing a power of attorney to transfer the client's property to a close relative constitutes professional misconduct
  • circumstantial evidence can establish misconduct
  • Bar Council of India can transfer and dispose of complaints from State Bar Council
  • two-year suspension for such misconduct is proportionate.
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Case Details

1997 LawText (SC) (01) 77

1997-01-27

B.P. Jeevan Reddy, S.B. Majumdar

Harish Chander Singh

S.N. Tripathi

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Nature of Litigation

Disciplinary proceedings against an advocate for professional misconduct before the Bar Council of India, appealed under Section 38 of the Advocates Act, 1961.

Remedy Sought

Appellant sought to set aside the order of the Disciplinary Committee of the Bar Council of India holding him guilty of professional misconduct and suspending him from practice for two years.

Filing Reason

The original complainant alleged that the appellant, his advocate, fraudulently orchestrated execution of a power of attorney in favour of his junior, who then sold the complainant's land to the appellant's father.

Previous Decisions

Disciplinary Committee of the Bar Council of Uttar Pradesh could not dispose of the complaint within one year, so it stood transferred to the Bar Council of India. The Disciplinary Committee of the Bar Council of India held the appellant guilty of professional misconduct and suspended him for two years; co-delinquent Syed Husain Ahmad was reprimanded and did not appeal.

Issues

Whether the appellant advocate was guilty of professional misconduct by misusing the client's power of attorney to transfer property to his own father. Whether the Disciplinary Committee's finding and the two-year suspension were sustainable on the evidence and proportionate.

Submissions/Arguments

Appellant argued that the order was not sustainable by evidence on record and that he had no knowledge of the sale deed executed in favour of his father; he also contended that the co-delinquent was not his junior and that the complainant was literate and executed the power of attorney voluntarily. Respondent/complainant argued that the appellant persuaded the complainant to execute a mukhtarnama, the contents were not read over, and the junior executed a fraudulent sale deed in favour of the appellant's father, thus duping the complainant.

Ratio Decidendi

An advocate owes a fiduciary duty to his client and must not misuse the confidence reposed in him. Where circumstantial evidence establishes that an advocate procured a power of attorney from his client, facilitated its misuse by his junior to execute a sale deed in favour of his own father, and the advocate failed to rebut the circumstances, such conduct amounts to professional misconduct warranting suspension under the Advocates Act, 1961.

Judgment Excerpts

The tell-tale circumstances which have emerged on record clearly indicate that the appellant was guilty of professional misconduct. The Disciplinary Committee was, therefore, right in taking the view that the complainant was duped by his advocate, namely, the appellant who had misused the confidence reposed by the complainant in him and had tried to dispose of the complainant's property in favour of his own father. In view of our findings recorded hereinabove this appeal is liable to fail and is accordingly dismissed with costs.

Procedural History

Complaint filed by Daya Ram through S.N. Tripathi, President of Bar Association, Akbarpur, before the Bar Council of Uttar Pradesh. The Disciplinary Committee of the State Bar Council could not dispose of the complaint within one year, so it stood transferred to the Bar Council of India. The Disciplinary Committee of the Bar Council of India recorded evidence and found the appellant guilty of professional misconduct, imposing a two-year suspension. The appellant filed the present appeal under Section 38 of the Advocates Act, 1961 before the Supreme Court. During pendency, interim stay was granted. Notices were issued to Daya Ram and Nand Kishore Singh regarding the impugned sale deed, but both were found dead, and the sale deed was already held fictitious in consolidation proceedings; notices were discharged. The appeal was then decided.

Acts & Sections

  • Advocates Act, 1961: Section 38
  • Supreme Court Rules, 1966: Order 5
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