Gujarat High Court Grants Leave to Appeal Against Consent Decree Alleged to be Collusive and Fraudulent — Applicant Not Joined Despite Prior Registered Sale Deed. The court held that the applicant, who had a registered sale deed in his favour, was a necessary party and was entitled to challenge the consent decree passed in a suit for specific performance.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The applicant, Chandubhai Maganbhai Kalathiya, filed a Civil Application for Leave to Appeal against a consent decree dated 03.08.2019 passed in Special Civil Suit No.215 of 2019. The applicant claimed that the original defendant had executed a sale deed for lands bearing survey no.19/1 block no.8A admeasuring 18312 sq. mtrs. and survey no.25/2 block no.19 admeasuring 19527 sq. mtrs. at village Sabarbam, taluka Choriyasi, district Surat in his favour. Due to deficit stamp duty, the sale deed was not registered initially, but upon payment of the requisite stamp duty, it was registered on 27.11.2013. The applicant alleged that a backdated agreement to sell dated 31.01.2005 was executed between the original plaintiff and the defendant, and the suit for specific performance was filed without joining the applicant, despite the sale deed dated 28.02.2005 executed in his favour. The suit was decreed within 37 days, followed by execution of a sale deed in favour of the original plaintiff and its registration on 24.02.2022. The applicant objected to mutation entry no.831 posted in the plaintiff's name, leading to Takrari Case No.87 of 2022. The court considered the application and granted leave to appeal, holding that the applicant, being a person aggrieved by the decree, is entitled to seek leave to appeal against the consent decree.

Headnote

A) Civil Procedure - Leave to Appeal - Consent Decree - Collusive and Fraudulent Decree - Non-joinder of Necessary Party - The applicant sought leave to appeal against a consent decree passed in Special Civil Suit No.215 of 2019, alleging that the decree was collusive and fraudulent and was obtained without joining the applicant, who had a prior registered sale deed in his favour. The court held that the applicant, being a person aggrieved by the decree, is entitled to seek leave to appeal, and the application was allowed. (Paras 1-2)

B) Specific Performance - Agreement to Sell - Prior Registered Sale Deed - The suit for specific performance was filed based on a backdated agreement to sell dated 31.01.2005, while the applicant had a registered sale deed dated 28.02.2005 executed in his favour. The court noted that the suit was decreed within 37 days, and the sale deed was executed in favour of the plaintiff and registered on 24.02.2022. The applicant's mutation entry was objected to, leading to Takrari Case No.87 of 2022. (Paras 2-3)

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Issue of Consideration

Whether the applicant, who claims to be a purchaser of the suit property under a registered sale deed, should be granted leave to appeal against a consent decree passed in a suit for specific performance of an agreement to sell, where the applicant was not joined as a party and the decree is alleged to be collusive and fraudulent.

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Final Decision

The court allowed the Civil Application for Leave to Appeal, granting the applicant leave to appeal against the consent decree dated 03.08.2019 passed in Special Civil Suit No.215 of 2019.

Law Points

  • Leave to appeal against consent decree
  • Collusive and fraudulent decree
  • Non-joinder of necessary party
  • Specific performance
  • Agreement to sell
  • Registered sale deed
  • Stamp duty
  • Mutation entry
  • Takrari case
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Case Details

2026:GUJHC:10288-DB

R/Civil Application (For Leave to Appeal) No. 3350 of 2024 in F/First Appeal/17739/2024

2026-02-06

Sangeeta K. Vishen, Mool Chand Tyagi

2026:GUJHC:10288-DB

Ms. Trusha K. Patel, Senior Advocate with Mr. Tattvam K. Patel for the Applicant; Mr. Aditya C. Yagnik, Mr. Darshan Parikh with Ms. Jayani B. Shah for Respondent No.2; Mr. Manav A. Mehta for Respondent No.1

Chandubhai Maganbhai Kalathiya

Jaswantiben Champakbhai Patel & Anr.

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Nature of Litigation

Civil Application for Leave to Appeal against a consent decree in a suit for specific performance.

Remedy Sought

The applicant sought leave to appeal against the consent decree dated 03.08.2019 passed in Special Civil Suit No.215 of 2019.

Filing Reason

The applicant alleged that the consent decree was collusive and fraudulent and was obtained without joining the applicant, who had a prior registered sale deed in his favour.

Previous Decisions

The consent decree dated 03.08.2019 was passed in Special Civil Suit No.215 of 2019. Mutation entry no.831 was posted in the name of the plaintiff, which was objected to by the applicant, leading to Takrari Case No.87 of 2022.

Issues

Whether the applicant is entitled to leave to appeal against the consent decree. Whether the consent decree is collusive and fraudulent due to non-joinder of the applicant.

Submissions/Arguments

The applicant argued that the consent decree was collusive and fraudulent and was obtained without joining him, despite his registered sale deed. The respondents opposed the application, but the court found merit in the applicant's submissions.

Ratio Decidendi

A person who claims to be aggrieved by a consent decree on the ground of collusion or fraud, and who was not joined as a party despite having a prior registered sale deed, is entitled to seek leave to appeal against such decree.

Judgment Excerpts

Captioned application is preferred by the applicant seeking leave to appeal against the consent decree dated 03.08.2019 passed in Special Civil Suit no.215 of 2019. Grievance of the applicant in the captioned proceedings is that the impugned decree is collusive and fraudulent and is procured without joining the applicant as a party.

Procedural History

The applicant filed Civil Application No.3350 of 2024 seeking leave to appeal against the consent decree dated 03.08.2019 passed in Special Civil Suit No.215 of 2019. The application was reserved on 12.09.2025 and pronounced on 06.02.2026.

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