Case Note & Summary
The original plaintiff, Sushilabai Byramji, filed Regular Civil Suit No.63 of 1982 seeking rendition of accounts, execution of trusts, setting aside of a decree passed in Special Civil Suit No.230 of 1975, and injunction against alienation of trust properties. The suit was mainly for a declaration that the decree in Special Civil Suit No.230 of 1975 was null and void. The trial court dismissed the suit, and the first appellate court confirmed the dismissal. The plaintiff then filed the present second appeal. The High Court examined the nature of the decree in Special Civil Suit No.230 of 1975, which was a consent decree passed in a suit for administration of a trust. The court noted that a consent decree can be challenged only on grounds of fraud or collusion, and the plaintiff failed to plead or prove any such vitiating factors. The court also observed that the suit was barred by limitation as the plaintiff had knowledge of the decree more than three years before filing the suit. The High Court found no substantial question of law involved and dismissed the second appeal, upholding the concurrent findings of the courts below.
Headnote
A) Civil Procedure - Consent Decree - Nullity - A consent decree can be challenged only on the ground of fraud or collusion, not on merits. The court held that the decree in Special Civil Suit No.230 of 1975 was a consent decree and the plaintiff failed to prove any fraud or collusion. (Paras 1-17)
B) Trust Law - Administration of Trust - Section 92 CPC - Suit for administration of trust by a beneficiary is maintainable, but a consent decree settling the accounts and scheme is binding unless set aside on valid grounds. (Paras 2-10)
C) Limitation - Suit for Declaration - Article 58 of Limitation Act, 1963 - Suit to declare a decree as null and void must be filed within three years from the date of knowledge. The court found the suit was filed beyond limitation as the plaintiff had knowledge of the decree earlier. (Paras 11-15)
Issue of Consideration
Whether the consent decree passed in Special Civil Suit No.230 of 1975 is null and void and liable to be set aside, and whether the suit for declaration and rendition of accounts is maintainable.
Final Decision
The High Court dismissed the second appeal, upholding the concurrent findings of the trial court and the first appellate court. The court found no substantial question of law involved and held that the consent decree was not null and void.
Law Points
- Consent decree
- null and void
- fraud
- collusion
- trust
- administration
- Section 92 CPC
- Order 23 Rule 3 CPC
- Section 34 Specific Relief Act
- 1963
Case Details
2014 LawText (BOM) (01) 111
Second Appeal No.207 of 1994
Mr. Uday Dastane for Appellants, Mr. P.V. Kulkarni for Respondent No.2
Smt. Sushilabai wd/o. Bomenshaw Byramji (since deceased) through LRs
Smt. Kamlarukh wd/o. DPR Cassad (since deceased) through LRs and Smt. Aban R. Patit
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Nature of Litigation
Second appeal against concurrent findings in a suit for declaration that a consent decree in a trust administration suit is null and void, rendition of accounts, and injunction.
Remedy Sought
Appellant sought to set aside the judgment and decree of the lower appellate court and to declare the decree in Special Civil Suit No.230 of 1975 as null and void.
Filing Reason
The appellant claimed that the consent decree in Special Civil Suit No.230 of 1975 was obtained by fraud and collusion and that the trust properties were being mismanaged.
Previous Decisions
The trial court dismissed the suit on 26.11.1982, and the first appellate court confirmed the dismissal on 11.11.1993.
Issues
Whether the consent decree in Special Civil Suit No.230 of 1975 is null and void?
Whether the suit is barred by limitation?
Whether the appellant is entitled to rendition of accounts and other reliefs?
Submissions/Arguments
Appellant argued that the consent decree was obtained by fraud and collusion and that the trust was not properly administered.
Respondents contended that the decree was a valid consent decree and the suit was barred by limitation and res judicata.
Ratio Decidendi
A consent decree can be challenged only on grounds of fraud or collusion, and the plaintiff failed to prove any such vitiating factors. The suit was also barred by limitation as the plaintiff had knowledge of the decree more than three years before filing the suit.
Judgment Excerpts
The suit was mainly for seeking the relief of declaration that the decree passed in Special Civil Suit No.230 of 1975 was null and void and setting aside the same.
A consent decree can be challenged only on the ground of fraud or collusion, not on merits.
The plaintiff failed to prove any fraud or collusion in obtaining the consent decree.
Procedural History
The original plaintiff filed Regular Civil Suit No.63 of 1982 on 26.11.1982, which was dismissed by the 2nd Joint Civil Judge, Junior Division, Nagpur. The plaintiff appealed to the 5th Additional District Judge, Nagpur in Regular Civil Appeal No.56 of 1983, which was dismissed on 11.11.1993. The plaintiff then filed the present Second Appeal No.207 of 1994 in the High Court.
Acts & Sections
- Code of Civil Procedure, 1908: Section 92, Order 23 Rule 3
- Specific Relief Act, 1963: Section 34
- Limitation Act, 1963: Article 58
