Bombay High Court at Goa Allows Appeal Against Setting Aside of Inventory Decree on Ground of Fraud — Proper Remedy for Challenging Final Partition is by Suit, Not Application Under Article 771 of Portuguese Civil Procedure Code.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The appellant, Shri Gurudas B. Velip, challenged an order dated 5 December 2006 passed by the Civil Judge, Senior Division at Quepem, in Special Inventory Proceedings No. 9/2003/A. By that order, the trial court allowed applications filed by the respondents (Gopal Malu Gaokar, Smt. Parvati Baburao Gaokar, and Harischandra Babu Raikar) to set aside the judgment and decree dated 10 July 2001, which had partitioned the properties of the deceased Narayan Gaokar and Smt. Abolem Narayan Gaonkar. The respondents alleged that the appellant had committed fraud by concealing their names as legal heirs and not citing them as interested parties. The trial court, relying on Article 771 of the Portuguese Civil Procedure Code, set aside the final judgment. The appellant contended that the applications were not maintainable because the proper remedy for challenging a final decree on grounds of fraud is by filing a suit, not an application. The respondents argued that the fraud justified setting aside the decree. The High Court examined the applicable law and found that rescission of a final partition is governed by Article 1427 of the Portuguese Civil Procedure Code, not Article 771. The court held that the applications under Article 771 were not maintainable and that the respondents' remedy lay in filing a separate suit. Consequently, the High Court allowed the appeal, set aside the impugned order, and dismissed the respondents' applications.

Headnote

A) Civil Procedure - Inventory Proceedings - Rescission of Final Partition - Article 1427 of Portuguese Civil Procedure Code - The court held that rescission of a partition which has become final for want of appeal is governed only by Article 1427 of the Portuguese Civil Procedure Code, and not by Article 771. The application under Article 771 was not maintainable as the proper remedy for challenging a final decree on grounds of fraud is by way of a suit. (Paras 5-6)

B) Civil Procedure - Fraud - Setting Aside Decree - Proper Remedy - The court observed that where a final judgment in inventory proceedings is alleged to have been obtained by fraud, the aggrieved party must file a separate suit to set aside the decree, and cannot seek rescission by way of an application under Article 771. The impugned order allowing such application was set aside. (Paras 5-6)

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Issue of Consideration

Whether the application filed by the respondents to set aside the final judgment and decree in inventory proceedings on the ground of fraud was maintainable, and whether Article 771 of the Portuguese Civil Procedure Code was applicable.

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Final Decision

Appeal allowed. Impugned order dated 5th December, 2006 set aside. Applications filed by respondents at exhibits 13, 20, and 25 stand dismissed.

Law Points

  • Rescission of final partition
  • Fraud in inventory proceedings
  • Maintainability of application to set aside decree
  • Applicability of Article 771 vs Article 1427 of Portuguese Civil Procedure Code
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Case Details

2010 LawText (BOM) (08) 131

Appeal from Order No. 27 of 2007

2010-08-13

F. M. Reis, J.

2010:BHC-GOA:1984

Mr. R. G. Ramani for Appellant, Mr. M. P. Almeida for Respondents

Shri Gurudas B. Velip

Shri Gopal Malu Gaokar, Smt. Parvati Baburao Gaokar, Shri Harischandra Babu Raikar

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Nature of Litigation

Appeal against order setting aside final judgment and decree in inventory proceedings on ground of fraud.

Remedy Sought

Appellant sought quashing of the impugned order allowing respondents' applications to set aside the decree.

Filing Reason

Respondents alleged that appellant committed fraud by concealing their names as legal heirs in inventory proceedings.

Previous Decisions

Trial court allowed respondents' applications under Article 771 of Portuguese Civil Procedure Code to set aside the final judgment and decree dated 10.07.2001.

Issues

Whether the application to set aside the final judgment in inventory proceedings on ground of fraud was maintainable under Article 771 of Portuguese Civil Procedure Code. What is the proper remedy for challenging a final partition decree on ground of fraud?

Submissions/Arguments

Appellant argued that the applications were not maintainable as the proper remedy was to file a suit, and Article 771 was not applicable. Respondents contended that the fraud committed by appellant justified setting aside the decree under Article 771.

Ratio Decidendi

Rescission of a final partition in inventory proceedings is governed exclusively by Article 1427 of the Portuguese Civil Procedure Code, and not by Article 771. An application under Article 771 to set aside a final decree on ground of fraud is not maintainable; the proper remedy is to file a separate suit.

Judgment Excerpts

I find that the law in force envisages rescission of the partition which has become final for want of Appeal only under Article no. 1427 of the Portuguese Civil Procedure Code. The applications filed by the respondents were not maintainable and the proper remedy for the respondents was to file a suit.

Procedural History

Inventory proceedings initiated upon death of Narayan Gaokar and Smt. Abolem Narayan Gaonkar. Final judgment and decree dated 10.07.2001 passed. Respondents filed applications on 29.09.2009 to set aside the decree on ground of fraud. Trial court allowed applications on 05.12.2006. Appellant filed Appeal from Order No. 27 of 2007 before High Court.

Acts & Sections

  • Portuguese Civil Procedure Code: Article 771, Article 1427
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High Court Bombay High Court at Goa Allows Appeal Against Setting Aside of Inventory Decree on Ground of Fraud — Proper Remedy for Challenging Final Partition is by Suit, Not Application Under Article 771 of Portuguese Civil Procedure Code.
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