High Court of Bombay at Goa Allows Second Appeal in Property Dispute — Sale Deed Duly Proved Cannot Be Discarded for Lack of Pleadings. Decree in Earlier Suit Not Binding on Non-Party Where Fraud Alleged.

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

The appellant, Mrs. Prabhavati Prabhakar Naik, filed a second appeal against the judgment of the District Judge in a property dispute. The background involves an earlier suit, Regular Civil Suit No.171/1981/D, filed by respondent nos. 3 and 4 against the appellant's husband seeking demolition of a structure on plot No.6. That suit was decreed, and the husband was directed to demolish the structure. During execution, the appellant, who was not a party to that suit, filed a separate suit alleging that the decree was obtained by fraud and collusion between the respondents and her husband. The appellant claimed ownership of the property based on a sale deed dated 9.2.1977 (Exhibit 49). The trial court dismissed the appellant's suit, and the District Judge upheld the dismissal, discarding Exhibit 49 on the ground that its contents were not pleaded in the plaint. The High Court admitted the second appeal on two substantial questions of law: (i) whether the decree in the earlier suit is binding on the appellant as a non-party, and (ii) whether the District Judge could discard Exhibit 49 for lack of pleadings. The appellant argued that the earlier decree was not binding on her as she was not a party and that the sale deed was duly proved. The respondents contended that the decree was valid and binding. The High Court held that the decree in the earlier suit is not binding on the appellant since she was not a party, and the District Judge erred in discarding the sale deed merely because its contents were not pleaded. The court allowed the appeal, set aside the judgments of the lower courts, and remanded the matter for fresh consideration.

Headnote

A) Civil Procedure - Res Judicata - Binding Effect of Decree on Non-Party - A decree passed in a suit is not binding on a person who was not a party to the suit, especially when fraud is alleged in obtaining the decree - The appellant, not being a party to the earlier suit, is not bound by the decree passed therein (Paras 2-3).

B) Evidence Act, 1872 - Proof of Documents - Sale Deed - A sale deed duly proved in evidence cannot be discarded merely because its contents were not pleaded in the plaint - The District Judge erred in rejecting Exhibit 49 on the ground of lack of pleadings (Para 2).

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Issue of Consideration

Whether the decree in Regular Civil Suit No.171/1981/D is binding on the appellant who was not a party to the suit; Whether the District Judge could discard Exhibit 49 (Sale Deed dated 9.2.1977) on the ground that there were no pleadings about its contents in the plaint.

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Final Decision

Appeal allowed. Impugned judgment and decree of the District Judge set aside. Matter remanded to the trial court for fresh disposal in accordance with law.

Law Points

  • Binding effect of decree on non-party
  • Proof of sale deed
  • Pleadings requirement for documentary evidence
  • Fraudulent decree
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Case Details

2017 LawText (BOM) (07) 142

Second Appeal No. 81 of 2009

2017-07-07

F. M. REIS, J.

Mr. S. S. Kantak, Senior Advocate with Mr. A. Kamat for appellant; Mr. C. A. Coutinho for respondent nos. 3 & 4; Mr. P. Phadte holding for Mr. S. D. Padiyar for respondent nos. 5 & 6

Mrs. Prabhavati Prabhakar Naik

Shailesh P. Panandikar, Smt. Sucheita S. Panandikar, Smt. Nandita Bendale, Shri Sachin Bendale, Mrs. Asha Prakash Panandikar, Mr. Mohandas Bhiku Bhat (deceased) through legal heirs, Mrs. Suman M. Bhat, Mr. Ragunath Babuso Naik, Mrs. Prema Ragunath Naik, Mr. Prabhakar Pandari Naik

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Nature of Litigation

Second appeal against judgment of District Judge dismissing suit challenging decree in earlier suit.

Remedy Sought

Appellant sought to set aside the decree in Regular Civil Suit No.171/1981/D and establish her ownership based on sale deed.

Filing Reason

Appellant alleged fraud and collusion in obtaining decree against her husband, and claimed she was not bound by it.

Previous Decisions

Trial court dismissed appellant's suit; District Judge dismissed appeal, discarding sale deed for lack of pleadings.

Issues

Whether the decree in Regular Civil Suit No.171/1981/D is binding on the appellant who was not a party to the suit? Whether the District Judge could discard Exhibit 49 (Sale Deed dated 9.2.1977) on the ground that there were no pleadings about its contents in the plaint?

Submissions/Arguments

Appellant argued that the earlier decree was not binding on her as she was not a party, and the sale deed was duly proved. Respondents argued that the decree was valid and binding, and the sale deed was rightly discarded for lack of pleadings.

Ratio Decidendi

A decree passed in a suit is not binding on a person who was not a party to the suit, especially when fraud is alleged. A sale deed duly proved in evidence cannot be discarded merely because its contents were not pleaded in the plaint.

Judgment Excerpts

Whether the Decree in Regular Civil Suit No.171/1981/D is not binding on the appellant as the appellant was not a party to the said suit ? Whether the District Judge could have discarded 'EXHIBIT 49” ( Sale Deed dated 9.2.1977 ) which was duly proved in evidence on the ground that there are no pleadings about the contents of the said Sale Deed in the plaint ?

Procedural History

Regular Civil Suit No.171/1981/D was filed by respondent nos. 3 and 4 against appellant's husband, decreed. Appellant filed suit challenging decree, dismissed by trial court. Appeal to District Judge dismissed. Second Appeal No. 81 of 2009 filed in High Court, admitted on 15.09.2011 on substantial questions of law. Heard on 07.07.2017 and allowed.

Acts & Sections

  • Code of Civil Procedure, 1908:
  • Indian Evidence Act, 1872:
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