Bombay High Court Dismisses Second Appeal in Property Dispute Involving Power of Attorney and Gift Deed — Concurrent Findings of Fact Not Interfered With. Court held that no substantial question of law arose as the lower courts had concurrently found the Power of Attorney and Gift Deed to be fraudulent and illegal.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The case involves a property dispute between two brothers, Prithviraj Ramkishan Agarwal (Appellant No.1) and Rajendrakumar Ramkishan Agarwal (Respondent No.1), over Flat No.108 in Anand Sagar Co-operative Housing Society, Vashi, Navi Mumbai. Respondent No.1 claimed absolute ownership of the flat and alleged that Appellant No.1, his elder brother, obtained a Power of Attorney in May 2008 through fraud and false representation. Based on that Power of Attorney, Appellant No.1 executed a Gift Deed dated 26th May 2008 in favor of his son, Piyush Prithviraj Agarwal (Appellant No.2). Respondent No.1 filed Special Civil Suit No.82 of 2011 seeking declarations that the Power of Attorney and Gift Deed were illegal and for possession of the flat. The trial court (5th Joint Civil Judge, Senior Division, Thane) decreed the suit on 21st August 2015, declaring the Power of Attorney and Gift Deed as illegal and directing the appellants to hand over possession. The appellants appealed to the District Judge-4, Thane, in Civil Appeal No.195 of 2015, which was dismissed on 26th April 2018, affirming the trial court's findings. The appellants then filed the present Second Appeal under Section 100 of the Code of Civil Procedure, 1908. The High Court heard arguments from both sides. The appellants contended that the courts below erred in appreciating the evidence and that the Power of Attorney was validly executed. The respondents supported the concurrent findings. The High Court examined whether any substantial question of law arose. It noted that the findings of fact regarding fraud and misrepresentation were concurrent and based on evidence. The court held that no substantial question of law was involved and dismissed the Second Appeal, confirming the lower courts' decisions. The court also disposed of the accompanying Civil Application.

Headnote

A) Civil Procedure - Second Appeal - Substantial Question of Law - Section 100 CPC - The court examined whether the appeal involved any substantial question of law. Held that the concurrent findings of fact by the trial court and first appellate court regarding the fraudulent execution of the Power of Attorney and Gift Deed were based on proper appreciation of evidence and did not give rise to any substantial question of law. (Paras 1-14)

B) Property Law - Power of Attorney - Fraud and Misrepresentation - The dispute pertained to the validity of a Power of Attorney executed in May 2008 and a subsequent Gift Deed dated 26th May 2008. The courts below found that the Power of Attorney was obtained by fraud and false representation, and the Gift Deed was consequently illegal. Held that the findings of fact were concurrent and not perverse, hence not interfered with. (Paras 3-14)

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Issue of Consideration

Whether the Second Appeal under Section 100 of the Code of Civil Procedure, 1908 raises any substantial question of law warranting interference with the concurrent findings of fact recorded by the courts below.

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Final Decision

Second Appeal dismissed. The judgment and decree of the District Judge-4, Thane dated 26th April 2018 in Civil Appeal No.195 of 2015 is confirmed. Civil Application No.822 PF 2018 disposed of.

Law Points

  • Second appeal
  • substantial question of law
  • concurrent findings of fact
  • power of attorney
  • gift deed
  • fraud
  • misrepresentation
  • Section 100 CPC
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Case Details

2018:BHC-AS:18541

Second Appeal (Stamp) No.18046 of 2018 with Civil Application No.822 PF 2018

2018-07-12

Dr. Shalini Phansalkar-Joshi, J.

2018:BHC-AS:18541

Dr. Birendra Saraf, a/w. Mr. Rashid Khan and Mr. Jayant Wani, I/by Ms. Suvarna Joshi, for the Appellants-Applicants; Mr. Drupad Patil for the Respondents

Prithviraj Ramkishan Agarwal and Piyush Prithviraj Agarwal

Rajendrakumar Ramkishan Agarwal and Anandsagar Co-op. Housing Society Ltd.

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Nature of Litigation

Civil suit for declaration that Power of Attorney and Gift Deed are illegal and for possession of property.

Remedy Sought

Respondent No.1 sought declaration that Power of Attorney dated May 2008 and Gift Deed dated 26th May 2008 are illegal, and for possession of the suit flat.

Filing Reason

Allegation that Power of Attorney was obtained by fraud and false representation, and Gift Deed executed based on it is illegal.

Previous Decisions

Trial court decreed the suit on 21st August 2015; first appellate court dismissed appeal on 26th April 2018.

Issues

Whether the Second Appeal raises any substantial question of law under Section 100 CPC. Whether the concurrent findings of fact regarding fraud and misrepresentation are perverse or based on no evidence.

Submissions/Arguments

Appellants argued that the courts below erred in appreciating evidence and that the Power of Attorney was validly executed. Respondents supported the concurrent findings and argued that no substantial question of law arises.

Ratio Decidendi

In a second appeal under Section 100 CPC, the High Court cannot interfere with concurrent findings of fact unless they are perverse or based on no evidence. The findings of the lower courts that the Power of Attorney was obtained by fraud and the Gift Deed was illegal were based on proper appreciation of evidence and do not give rise to any substantial question of law.

Judgment Excerpts

This Second Appeal takes an exception to the 'Judgment and Decree' dated 26th April 2018 passed by the District Judge-4, Thane, in Civil Appeal No.195 of 2015... The said Suit was preferred by Respondent No.1 herein for a declaration that, the 'Power of Attorney' purported to be executed in the month of May, 2008 is illegal and bad in law...

Procedural History

Respondent No.1 filed Special Civil Suit No.82 of 2011 in the court of 5th Joint Civil Judge, Senior Division, Thane, which was decreed on 21st August 2015. Appellants appealed to the District Judge-4, Thane in Civil Appeal No.195 of 2015, which was dismissed on 26th April 2018. Appellants then filed the present Second Appeal (Stamp) No.18046 of 2018 in the Bombay High Court, which was dismissed on 12th July 2018.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
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