Supreme Court Reverses Remand Order and Upholds Ex Parte Decree in Tenancy Suit Due to Unsubstantiated Fraud Allegations and Inordinate Delay. The Court found that the defendant had opportunity to defend, delay of 31 years was unjustified, and failure to produce sale deed warranted adverse inference under the Indian Evidence Act, 1872.

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Case Note & Summary

The dispute originated from a suit filed under Section 88 of the Rajasthan Tenancy Act, 1955, by the appellant's mother on behalf of her minor son, seeking declaration of khatedari (tenant-occupant) rights over 158.3 bighas of land and recovery of half the land allegedly encroached by the defendants based on a fabricated sale deed. The suit was decreed ex parte on 16.08.1975 after the first defendant, though initially appearing through counsel and in person, was declared ex parte for non-appearance. An appeal filed by the first defendant in 2006, after a 31-year delay, was rejected by the first appellate authority on grounds of gross delay. However, in a second appeal, the Board of Revenue remanded the matter, finding that the first defendant, a widow and illiterate, was denied reasonable opportunity to defend, and the High Court affirmed this in an intra-court appeal. The core legal issues involved the validity of the ex parte decree, condonation of inordinate delay, allegations of fraud, and the defendant's failure to produce key evidence like the sale deed. The appellant argued that the first defendant had ample opportunity to defend, as evidenced by trial court records showing her appearances and evidence led, and that the delay was unjustified. The respondents contended that fraud was involved, the first defendant was unaware of proceedings, and procedural lapses existed under Rule 143 of the General Rules (Civil), 1986. The Supreme Court, after perusing records, found that the trial court proceedings clearly indicated the first defendant's presence through counsel and in person, with evidence led, and that allegations of fraud were improved upon at successive stages without substantiation. The Court held that Rule 143 is directory, not mandatory, and the defendant's admission of knowledge through a lawyer in 2006 undermined the delay condonation. Citing precedents, the Court emphasized that adverse inference should be drawn for non-production of the sale deed, and voidable transactions can be repudiated without a separate suit. Consequently, the Court set aside the impugned orders, restoring the ex parte decree of 1975, and dismissed the respondent's appeal, upholding the appellant's possession claims.

Headnote

A) Civil Procedure - Ex Parte Decree - Setting Aside - Rajasthan Tenancy Act, 1955, Section 88 - First defendant contested suit through counsel and appeared personally but later declared ex parte for non-appearance - Trial court proceedings recorded her presence and evidence was led - Held that remand order setting aside ex parte decree was unsustainable as defendant had opportunity to defend and allegations of fraud were unsubstantiated (Paras 9-10).

B) Limitation Law - Delay Condonation - Gross Delay - Civil Procedure Code, 1908 - Appeal filed in 2006 against 1975 decree, causing 31-year delay - First appellate authority rejected appeal on ground of gross delay - Held that Revenue Board and High Court erred in condoning such inordinate delay without sufficient cause, especially when defendant admitted knowledge through lawyer in 2006 (Paras 11-12).

C) Evidence Law - Adverse Inference - Non-Production of Best Evidence - Indian Evidence Act, 1872, Sections 114(g), 103 - Defendant failed to produce sale deed despite application to court - Reliance on Gurnam Singh v. Surjit Singh and Ajay Kumar D. Amin v. Air France - Held that adverse inference can be drawn against defendant for withholding best evidence on possession and title (Paras 13-14).

D) Property Law - Voidable Transaction - Repudiation - General Principles - Sale deed alleged to be fabricated and voidable - Plaintiff sought declaration of khatedari and recovery of land without specific suit against sale deed - Reliance on K.S. Shivappa v. K. Neelamma - Held that voidable transaction can be repudiated by unequivocal conduct without instituting separate suit (Paras 6-7).

E) Procedural Law - Court Proceedings - Signature Requirements - General Rules (Civil), 1986, Rule 143 - Defendant challenged presence due to lack of signatures in proceedings sheet - Rule 143 is directory, not mandatory, using phrase 'so far as possible' - Held that court recordings of presence through advocate cannot be belied by bland pleading (Paras 10-11).

Issue of Consideration: Whether the remand order by the Board of Revenue and affirmed by the High Court, setting aside the ex parte decree of 1975 and condoning a 31-year delay in filing appeal, was justified based on allegations of fraud and lack of opportunity to defend.

Final Decision

Supreme Court set aside the impugned orders of the Board of Revenue and High Court, restored the ex parte decree of 16.08.1975, and dismissed the respondent's appeal, upholding the appellant's claims.

2026 LawText (SC) (04) 39

Civil Appeal No. of 2026 (@ Special Leave Petition (Civil) No.4664 of 2025)

2026-04-10

SANJAY KUMAR J. , K. VINOD CHANDRAN J.

2026 INSC 350

Shri Vaibhav Gaggar, Shri Sadan Farasat

Hari Ram

State of Rajasthan & Ors.

Nature of Litigation: Suit for declaration of khatedari (tenant-occupant) rights and recovery of land under the Rajasthan Tenancy Act, 1955

Remedy Sought

Appellant sought declaration of khatedari on 158.3 bighas of land and recovery of half the land unlawfully encroached by defendants

Filing Reason

Alleged encroachment based on a fabricated sale deed by defendants

Previous Decisions

Trial court decreed suit ex parte on 16.08.1975; first appellate authority rejected appeal in 2006 due to gross delay; Board of Revenue remanded matter; High Court affirmed remand in intra-court appeal

Issues

Validity of ex parte decree and remand order Condonation of 31-year delay in filing appeal Allegations of fraud and procedural fairness Adverse inference for non-production of sale deed

Submissions/Arguments

Appellant argued first defendant had opportunity to defend, delay unjustified, fraud allegations unsubstantiated Respondent argued fraud, lack of opportunity, procedural lapses under Rule 143, and voidable nature of sale deed

Ratio Decidendi

Ex parte decree is valid when defendant had opportunity to defend; inordinate delay of 31 years cannot be condoned without sufficient cause; adverse inference must be drawn for non-production of best evidence; voidable transactions can be repudiated by conduct without separate suit; procedural rules like Rule 143 are directory, not mandatory.

Judgment Excerpts

The appellant sought declaration of his ‘khatedari’ (tenant-occupant) on a land having a total extent of 158.3 bighas The suit was decreed as early as on 16.08.1975 An appeal by Keshi long after, in the year 2006, was rejected on the ground of gross delay Rule 143, in any event, is not mandatory and is clearly directory, going by the words employed of ‘so far as possible’ Gurnam Singh relied on Sections 114(g) and 103 of the Evidence Act, 1872 to hold that when a party in possession of the best evidence, which throws light on the issue in controversy, withholds it, the Court is entitled to draw an adverse inference

Procedural History

Suit filed under Section 88 of Rajasthan Tenancy Act, 1955; decree passed on 16.08.1975; appeal filed in 2006 rejected for delay; second appeal led to remand by Board of Revenue; High Court affirmed remand; Supreme Court heard appeal via special leave petition.

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