JOSEPH JOHN PETER SANDYversusVERONICA THOMAS RAJKUMAR & ANR
- Citation
- 2013 INSC 156
- Decided
- 12 March 2013
- Disposal
- Dismissed
- Bench
- B S CHAUHAN
Holding
The appellant could not seek rectification of the settlement deed, and the claim of undue influence was unsupported; therefore the appeals were dismissed.
Summary
The appellant, Joseph John Peter Sandy, sought a decree of rectification of a 1981 settlement deed that had transferred a house to his sister, Veronica Thomas Rajkumar, alleging a mistake and that the parties intended to exchange the properties. The sister contested, claiming the alleged agreement of 1 June 1982 was forged and obtained under undue influence. The Supreme Court held that only the settlor (the father) could seek rectification under Section 26 of the Specific Relief Act and he was not a party to the suit; thus the appellant had no locus standi. The Court also found no proof of undue influence under Section 16 of the Contract Act, as the document’s contents were not proved and the sister was not bound by the rectification deed. Consequently, the appeals were dismissed.
Issues considered
- Whether the appellant could invoke Section 26 of the Specific Relief Act to obtain rectification of the settlement deed.
- Whether the alleged agreement of 1 June 1982 was obtained by undue influence under Section 16 of the Contract Act.
- Whether the unregistered memorandum of agreement is admissible and can be relied upon.
- Who bears the onus of proving the existence and contents of the alleged agreement.
Legislation cited
- Code of Civil Procedure, 1908s. Order XVIII Rule 16
- Indian Contract Act, 1872s. 16
- Specific Relief Act, 1963s. 26
Subjects
Judgment
[2013] 2 S.C.R. 368
A JOSEPH JOHN PETER SANDY
v.
VERONICA THOMAS RAJKUMAR & ANR.
(Civil Appeal Nos. 2178-2179 of 2004 etc.)
MARCH 12, 2013
B
[DR. B.S. CHAUHAN AND FAKKIR MOHAMED
IBRAHIM KALIFULLA, JJ.]
SPECIFIC RELIEF ACT, 1963:
c
s.26 - Suit for rectification of settlement deeds - Held:
Appellant could not have filed the suit for rectification of
settlement deed, as there was no mistake in its understanding
or execution by the parties - It was only the father of the
0 parties who could have sought rectification of the deed, but
he was neither impleaded, nor examined before the trial court,
though he was still alive at the time of institution of the suit -
As respondent no. 1 was not a party to the alleged rectification
deed, she was not bound by it - Besides, the memorandum
E of agreement relied upon by the plaintiff has not been proved
- Evidence - Onus of proof.
CONTRACT ACT, 1872:
s. 16 - Contract induced by undue influence - Held: High
F Court has come to the conclusion that it was a case of undue
influence, as on the date of executing the alleged document,
i.e. Memorandum of agreement, respondent no. 1 was
unmalTied and was dependent on her father and brother for
settling her marriage and for sustenance - She having
G contended that plaintiff was in a position to dominate her will,
the alleged document was termed as an unconscionable -
The said document was clouded with suspicious and
unexplained circumstances.
H 368
JOSEPH JOHN PETER SANDY v. VERONICA 369
THOMAS RAJKUMAR
The father of the appellant and respondent no. 1 A
executed two registered settlement deeds on 27.8.1981
transferring House No. 23 in the name of his daughter
(respondent No. 1) and House No. 22 in the name of his
son (the appellant). The appellant filed O.S.No. 6331 of
1983 on 12.9.1983 for issuance of direction to defendant/ B
respondent no.1, to execute a Deed of Rectification and
further to restrain her from interference with the
appellant's possession of the suit property. It was the
case of the plaintiff-appellant that after the settlement
deed dated 27.8.1981, the father of the parties realised c
that House No. 23 which was given to the daughter,
ought to have been given to him and House No. 22 to the
daughter. Thus, the parties to give effect to the real
intention of their father decided to exchange the
properties given to them, and in furtherance thereof,
0
executed an Agreement Deed to exchange the same on
1.6.1982 (Ext. A-3), but respondent no. 1 failed to give
effect to the same. During the pendency of the suit, the
settler and the appellant were stated to have executed a
Rectification Deed (Ext.A-6) on 8.10.1983 by which the E
property in Door No.23 was given to the appellant. The
said deed was signed by two witnesses. Respondent
no.1/defendant filed suit O.S. No. 415 of 1984 for
declaration that the agreement dated 1.6.1982 (Ext.A-3),
an unregistered document, was null and void, being a
forged document, and that she, under undue influence, F
put her signature on the blank non-judicial stamp papers.
The trial court decreed the appellant's suit and dismissed
that of respondent no.1. However, the High Court allowed
both the appeals filed by respondent no.1.
G
Dismissing the appeals, the Court,
HELD: 1-.1. Section 26 of the Specific Relief Act, 1963
has a limited application, and is applicable only where it
is pleaded and proved that through fraud or mutual H
370 SUPREME COURT REPORTS [2013] 2 S.C.R.
A mistake of the parties, the real intention of the parties is
not expressed in relation to an instrument. Such
rectification is permissible only by the parties to the
instrument and by none else. [para 7] [378-D-E]
B Subhadra & Ors. v. Thankam, 2010 (8) SCR 299 =AIR
2010 SC 3031; State of Kamataka & Anr. v. K. K. Mohandas
& etc, 2007 (8) SCR 697 =AIR 2007 SC 2917 - relied on.
1.2. In the instant case, as respondent no. 1 was not
a party to the document Ext A-6, she was not bound by
C it. Also, the appellant could not have filed the suit for
rectification of settlement deed, as there was no mistake
in the understanding or execution by the parties. It was
only the father of the parties who could have sought
. rectification of the deed, but he was neither impleaded,
0 nor examined before the trial court, though he was still
alive at the time of institution of the suit. Even the
appellant failed to examine the witnesses to the
document Ext.A-3. [para 4] [377-C-D]
E 1.3. There is no dispute that by the settlement deed
dated 27.8.1981, the father of the parties had given House
No. 23 admeasuring 2413 Sq. Ft. to the daughter -
respondent no.1 and House No. 22 admeasuring 730 Sq.
Ft to the son - appellant None of the attesting witnesses
F to these documents had been examined by either of the
parties, to ascertain whether father of the parties, had
expressed any intention in respect of the properties
before them. Ext.A-6 dated 28.10.1983 an unregistered
document by which the father had expressed his will that
G House No. 23 should be given to the son - appellant, is
subsequent to Exts.A1 and A2. The appellant has
examined one of the attesting witnesses but the High
Court came to the right conclusion that as respondent
no.1 was not a party to the document, it has no effect,
H whatsoever in law, on the case. [para 20] [384-D-F]
.. '
JOSEPH JOHN PETER SANDY v. VERONICA 371
THOMAS RAJKUMAR
1.4. In the Memorandum of Agreement dated A
1.6.1982, it is stated that mistakes, in the settlement deed
made by the father, of the parties having been discovered
only in the last week of May 1982, the parties, have
decided to rectify the error and for that purpose, they
would execute and register necessary documents to B
rectify the mistake. Thus, the document Ex.A-3 cannot be
read as an "agreement to exchange." It can be read only
as a rectification deed, which could have been done only
by the settlor and not by the contesting parties •
.Considering the respective area of the properties bearing C
nos.22 and 23, the contract can definitely be held
"unconscionable"~ [para 20 and 27(viii)] [384-G-H; 385-A;
388-F]
2.1. Section 16 of the Contract Act, 1872 provides that 0
a contract is said to be induced by "undue influence"
where the relations subsisting between the parties are
such that one of the parties is in a position to dominate
the will of the other, and uses that position to obtain an
unfair advantage over the other. [para 7) [378-F-G] E
Bishundeo Narain & Anr. v. Seogeni Rai & Jagemath
1951 SCR 548 =AIR 1951 SC 280; Ladli Prashad Jaiswal
v. The Karna/ Distillery Co. Ltd., Karna/ & Ors, 1964
SCR 270 = AIR 1963 SC 1279; Subhash Chandra Das
Mushib v. Ganga Prasad Das Mushib & Ors., 1967 F
SCR 331 =AIR 1967 SC 878; Afsar Shaikh & Anr v. Soleman
Bibi & Ors. 1976 (2) SCR 327 =AIR 1976 SC 163 - relied
on.
Poosathurai v. Kannappa Chettiar, AIR 1920 PC 65 - G
referred to.
2.2. In the instant case, High Court came to the
conclusion that it was a case of undue influence as on
the date of executing the alleged document Ext.A-3, H
372 SUPREME COURT REPORTS [2013) 2 S.C.R.
A respondent no.1 was unmarried and was dependent on
her father and brother for settling her marriage and for
sustenance, and, as such, the plaintiff was in a position
to dominate her will. It was a case, wherein, after
obtaining the signatures of respondent no.1 on some
B papers, the document had been scribed. With respect to
the document, the High Court held that the said document
ExlA-3 being a typed document, ought to have contained
the name of the person who had scribed it. It further
reasoned that the language used therein suggests that
C it was drafted by an expert in the field and thus, the whole
document is clouded with suspicion and unexplained
circumstances. [para 24) (386-B-E]
Madan Mohan Singh & Ors v. Rajni Kant & Anr, 2010
D (10) SCR 30 =AIR 2010 SC 2933; State of Bihar & Ors. v.
Radha Krishna Singh & Ors., AIR 1983 SC 684; H.Siddiqui
(dead) by Lrs. v. A. Ramalingam 2011 (5) SCR 587 =·AIR
2011 SC 1492; Laxmibai (dead) thr. Lrs. & Anr v.
Bhagwantbuva (dead) thr Lrs. & Ors., JT 2013(2) SC 362 -
E relied on.
Hari Singh v. Kanhaiya Lal 1999 Suppl. (2) SCR 216 =
AIR 1999 SC 3325 - referred to.
2.3. It is crystal clear that even though the document
F may be admissible, still its contents have to be proved.
In the instant case, as the appellant did not examine
either the attesting witnesses of the document, nor
proved its contents no fault can be found with the
judgment of the High Court. Neither of the party has
G examined the attesting witness to document Ext.A-3.
Such a witness could have explained the conduct of the
parties and deposed as to who had prepared Ext. A-3.
The trial court had reasoned that, even· though the
appellant did not examine the attesting witness of Ex.A-
H 3, the defendant could have done it and prove the
JOSEPH JOHN PETER SANDY v. VERONICA 373
THOMAS RAJKUMAR
allegations she had made against her brother - appellant, A
and thus in the process had wrongly shifted the burden
of proof. [para 22, 26 and 27(1)] [385-D; 386-G-H; 387-C]
Thiruvengada Pillai v. Navaneethammal & Anr, 2008 (3)
SCR 23 = AIR 2008 SC 1541; K. Laxmanan v. Thekkayi/ B
Padmini & Ors., 2008 (16) SCR 1117 =AIR 2009 SC 951;
and Krishna Mohan Ku/ @ Nani Charan Ku/ & Anr. v.
Pratima Maity & Ors. 2003 Suppl. (3) SCR 496 = AIR 2003
SC 4351 - referred to.
2.4. Document Ex. 83 dated 29th July 1983 is C
subsequent to document Ex.A-6, wherein settlor wrote to
respondent No.1 that he had given Door No.23 to her.
Thus, the settlor never intended otherwise. [para 27(vi)]
[388-C]
D
Case Law Reference:
2010 (8) SCR 299 relied on para 6
2007 (8) SCR 697 relied on para 6
E
1951 SCR 548 relied on para 8
AIR 1920 PC 65 referred to para 9
1964 SCR270 relied on para 10
1967 SCR 331 relied on para 11 F
1976 (2) SCR 327 relied on para 12
1999 (2) Suppl. SCR 216 referred to para 13
AIR 1983 SC 684 relied on para 14 G
2010 (10) SCR 30 relied on para 15
2011 (5) SCR 587 relied on para 15
JT 2013(2) SC 362 relied on para 15
H
374 SUPREME COURT REPORTS [2013) 2 S.C.R.
A 2008 (3) SCR 23 referred to para 16
2008 (16) SCR 1117 referred to para 17
2003 (3) Suppl. SCR 496 referred to para 18
B CIVIL AP PELLATE JURISDICTION : Civil Appeal Nos.
2178-2179 of 2004.
From the Judgments & Orders dated 16.07.2003 of the
High Court of Judicature at Madras in A.S. No. 1104 of 1987
and Transferred A.S. No. 1120 of 2001.
c
WITH
C.A. Nos. 2184-2185 of 2004.
R. Balasubramanian, S. Nanda Kumar, R. Satish Kumar,
0 Parivesh Singh Anjali Chauhan, Karunakaran, S.K.
Bandhyopadhya, Rakesh K. Sharma, V.N. Raghupathy for the
Appellant.
Shyam Nandan, Neha Aggarwal, Karun Mehta, W. Aman,
Varun Tandon, Subramonium Prasad for the Respondents.
E
The Judgment of the Court was delivered by
DR. B.S. CHAUHAN, J. 1. These appeals have been
preferred against the impugned judgment and decree dated
16.7.2003 passed by the High Court of Madras in A.S. No.
F 1104 of 1987 and Transferred A.S. No. 1120 of 2001, wherein
it has set aside the judgment and decree of the trial court which
had decreed the suit of the appellant and dismissed the suit of
the respondent No.1.
G 2. The facts and circumstances giving rise to these
appeals are:
A. The contesting parties are the son and the daughter of
late B.P. Sandy. Though late B.P. Sandy had several children,
H considering his old age, he decided to transfer/settle his two
JOSEPH JOHN PETER SANDY v. VERONICA 375
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.]
houses bearing nos.22 and 23, Peria Palli Street, Raja A
Annamalai Puram, Chennai-28 in favour of his youngest son
and daughter (the contesting parties herein) respectively.
Therefore, the father of the parties executed two registered
settlement deeds on 27.8.1981 bearing nos. 1690/81 and
1691/81 at the office of Sub-Registrar, Mylapore, Chennai, B
transferring House No. 23 in the name of his daughter
(Respondent No. 1) and House No. 22 in the name of his son
(Appellant).
B. It is alleged by the appellant that the father of the parties
had only at a later point of time realised that the House No. 23 C
which was given to the daughter, ought to have been given to
him and House No. 22 to the daughter. Thus, the parties to give
effect to the real intention of their father decided to exchange
the properties given to them, and in furtherance thereof,
executed a Agreement Deed to exchange the same on D
1.6.1982. The said document was witnessed by Sheila Doss
and Mrs. Mary Doss, who were neighbours and teachers and
colleagues of the daughter - respondent no.1. Since, the said
agreement dated 1.6.1982 (Ex.A-3) had not been given effect
to by the respondent no.1, the appellant filed O.S.No. 6331 of E
1983 on 12.9.1983 in the court of City Civil Judge, Chennai,
for issuance of direction to the defendant/respondent no.1, to
execute a Deed of Rectification and further to restrain her from
interference with the appellant's possession of the suit property.
During the pendency of this suit, Shri B.P. Sandy and the F
appellant executed a Rectification Deed (Ex.A-6) on 8.10.1983
by which property in Door No.23 was given to the appellant.
The said deed was signed by two witnesses Susan Muthu and
A. Bernard. The respondent no.1/defendant filed suit O.S. No.
415 of 1984 before the same court for declaration that the G
agreement dated 1.6.1982 (Ex.A-3), an unregistered
document, was null and void, being a forged document, and that
she has under undue influence put her signature on the blank
non-judicial stamp papers.
H
376 SUPREME COURT REPORTS [2013] 2 S.C.R.
A C. The trial court decided both the suits together vide
judgment and decree dated 21.8.1986 by way of which the
appellant's suit was decreed and that of respondent no.1 was
dismissed.
B D. Aggrieved, the respondent no.1 filed an appeal before
the learned District Judge, however, it was subsequently
transferred to the High Court and the High Court has allowed
both the appeals filed by respondent no.1.
It may also be pertinent to mention here that during the
C pendency of the appeals, the appellant got the Trial Court
decree executed through the court and subsequently sold the
property no.23 to the respondent no.2.
Hence, these appeals.
D 3. Shri R. Balasubramanian, learned senior counsel
appearing for the appellant, has submitted that the High Court
has committed an error in interpreting the statutory provisions
of law and it was not necessary, that the agreement between
the parties, tantamount to an agreement to sell, may be a
E registered document as required under Section 17 of the
Registration Act or by any provision of the Transfer of Property
Act and, therefore, the High Court erred in holding the Ex.A-3
was inadmissible and inoperative in law. Once the document
(Ex.A-3) had been admitted in the evidence without any
F objection being raised, its contents were bound to be admitted
and relied upon. In fact, the said document had been executed
by the parties in order to give effect to the real intention of their
father. Therefore, the question of undue influence could not have
been inferred. The judgment of the trial court ought not to have
G been reversed by the appellate court. The parties having jointly
taken a loan, an agreement was reached between the parties
that in consideration for the appellant paying the entire loan
taken for the marriage and maintenance of the respondent no.1,
she would transfer the property stood in her name. Thus, the
H appeals deserve to be allowed.
JOSEPH JOHN PETER SANDY v. VERONICA 377
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.]
4. Shri Shyam D. Nandan, learned counsel appearing on A
behalf of the respondent No.1, has submitted that the High Court
has rightly reversed the judgments and decree of the trial court
interpreting and applying the statutory provisions in correct
perspective. It was a clear cut case of undue influence. The
Rectification Deed (Ex.A-6) executed by the father and B
appellant .ought not to have been given effect to.
In the instant case, as the respondent no. 1 was not a party
to the document Ex.A-6, she was not bound by it. Also, the
appellant could not have file the suit for rectification of settlement
deed- Ex.A-1, as there was no mistake in the understanding C
or execution by the parties. The father of the parties was neither
impleaded, nor examined before the trial court, though he was
still alive at the time of institution of the suit. Even the appellant
failed to examine the witnesses to the document Ex.A-3. He
examined only Shri A. Bernard, the witness of document (Ex.A- D
6), who had no bearing to the instant case .. Thus, the appeals
lack merit and are liable to be dismissed.
5. We have considered the rival submissions made by the
learned counsel for the parties and perused the records. Before E
entering into merits of the case, it is desirable to examine the
legal issues.
LEGAL ISSUES :
I. Section 26 of Specific Relief Act. 1963: F
Section 26 of the Special Relief Act 1963 (hereinafter
referred to as 'Act') provides for rectification of instruments,
where through fraud or a mutual mistake of the parties, an
instrument in writing does not express the real intention, then G
the parties may apply for rectification. However, clause 4
thereof, provides that such a relief cannot be granted by the
court, unless it is specifically claimed.
6. In Subhadra & Ors. v. Thankam, AIR 2010 SC 3031,
this Court while deciding upon whether the agreement suffers H
378 SUPREME COURT REPORTS [2013] 2 S.C.R.
A from any ambiguity and whether rectification is needed, held
that when the description of the entire property has been given
and in the face of the matters being beyond ambiguity, the
question of rectification in terms of Section 26 of the Act would,
thus, not arise. The provisions of Section 26 of the Act would
8 be attracted in limited cases. The provisions of this Section do
not have a general application. These provisions can be
attracted in the cases only where the ingredients stated in the
Section are satisfied. The relief of rectification can be claimed
where it is through fraud or a mutual mistake of the
C parties that real intention of the parties is not expressed
in relation to an instrument.
A similar view has been reiterated by this Court in State
of Kamataka & Anr. v. K. K. Mohandas & etc, AIR 2007 SC
2917.
D
7. Thus, in view of the above, it can be held that Section
26 of the Act has a limited application, and is applicable only
where it is pleaded and proved that through fraud or mutual
mistake of the parties, the real intention of the parties is not
E expressed in relation to an instrument. Such rectification is
permissible only by the parties to the instrument and by none
else.
II. Undue influence • Section 16 of Contract Act. 1872:
F Section 16 of the Contract Act provides that a contract is
said to be induced by "undue influence· where the relations
subsisting between the parties are such that one of the parties
is in a position to dominate the will of the other, and uses that
position to obtain an unfair advantage over the other.
G
8. In Bishundeo Narain & Anr. v. Seogeni Rai &
Jagemath, AIR 1951 SC 280, while dealing with the issue, this
Court held:
".... in cases of fraud, 'undue influence' and coercion, the
H parties pleading it must set forth full particulars and the
JOSEPH JOHN PETER SANDY v. VERONICA 379
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.]
case can only be decided on the particulars as laid. There A
can be no departure from them in evidence. General
allegations are insufficient even to amount to an averment
of fraud of which any court ought to take notice however
strong the language in which they are couched may be, and
the same applies to undue influence and coercion." B
9. The Privy Council in Poosathurai v. Kannappa Chettiar,
AIR 1920 PC 65, reasoned that it is a mistake to treat undue
influence as having been established by a proof of the relations
of the parties having been such that the one naturally relied C
upon the other for advice and the other was in a position to
dominate the will of the first in giving it. Up to that point
"influence" alone has been made out. Such influence may be
used wisely, judiciously and helpfully. But whether by the law of
India or the law of England, more than mere influence must be
proved so as to render influence, in the language of the law, D
'undue'.
10. In Ladli Prashad Jaiswal v. The Kamal Distillery Co.
Ltd., Kamal & Ors, AIR 1963 SC 1279, this Court held:
E
"The doctrine of 'undue influence' under the common law
was evolved by the Courts in England for granting
protection against transactions procured by the exercise
of insidious forms of influence spiritual and temporal. The
doctrine applies to acts of bounty as well as to other F
transactions in which one party by exercising his position
of dominance obtains an unfair advantage over another.
The Indian enactment is founded substantially on the rules
of English common law. The first sub-section of S.16 lays
down the principle in general terms. By sub-section (2) a G
presumption arises that a person shall be deemed to be
in a position to dominate the will of another if the conditions
set out therein are fulfilled. Sub-section (3) lays down the
conditions for raising a rebuttable presumption that a
transaction is procured by the exercise of undue influence.
The reason for the rule in the third sub-section is that a H
380 SUPREME COURT REPORTS [2013] 2 S.C.R.
A person who has obtained an advantage over another by
dominating his will may also remain in a position to
suppress the requisite evidence in support of the plea of
undue influence."
B 11. In Subhash Chandra Das Mushib v. Ganga Prasad
Das Mushib & Ors., AIR 1967 SC 878, this Court held that the
Court trying the case of undue influence must consider two
things to start with, namely, (1) are the relations between the
donor and the donee, such that the donee is in a position to
C dominate the Will of the donor, and (2) has the donee used that
position to obtain an unfair advantage over the donor? Upon
the determination of these two issues a third point emerges,
which is that of the onus probandi. If the transaction appears
to be unconscionable, then the burden of proving that the
contract was not i.nduced by undue influence lies upon the
D person who is in a position to dominate the Will of the other. It
was further said that merely because the parties were nearly
related to each other or merely because the donor was old or
of weak character, no presumption of undue influence can
arise. Generally speaking the relations of solicitor and client,
E trustee and cestui que trust, spiritual adviser and devotee,
medical attendant and patient, parent and child are those in
which such a presumption arises.
12. In Afsar Shaikh & Anr v. Soleman Bibi & Ors., AIR
F 1976 SC 163, this Court held:
"The law as to undue influence in the case of a gift inter
vivos is the same as in the case of a contract. Sub-section
(3) of Section 16 contains a rule of evidence. According
to this rule, if a person seeking to avoid a transaction on
G the ground of undue influence proves-
(a) that the party who had obtained the benefit was, at the
material time, in a position to dominate the will of the other
conferring the benefit, and
H
JOSEPH JOHN PETER SANDY v. VERONICA 381
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.]
(b) that the transaction is unconscionable, A
the burden shifts on the party benefiting by the transaction
to show that it was not induced by undue influence. If either
of these two conditions is not established the burden will
not shift. As shall be discussed presently, in the instant 8
case the first condition had not been established; and
consequently, the burden never shifted on the defendant.
The Privy Council in Raghunath Prasad v. Sarju Prasad,
(AIR 1924 PC 60) expounded three stages for
consideration of a case of undue influence. It was pointed
' out that the first thing to be considered is, whether the C
plaintiff or the party seeking relief on the ground of undue
influence has proved that the relations between the parties
to each other are such that one is in a position to dominate
the will of the other. Upto this point, 'influence' alone has
been made out. Once that position is substantiated, the D
second stage has been reached - namely, the issue
whether the transaction has been induced by undue
influence. That is to say, it is not sufficient for the person
seeking the relief to show that the relations of the parties
have been such that the one naturally relied upon the other E
for advice, and the other was in a position to dominate the
will of the first in giving it. Upon a determination of the
issue at the second stage, a third point emerges, which
is of the onus probandi. If the transaction appears to be
unconscionable, then the burden of proving that it was not F
induced by undue influence is to lie upon the person who
was in a position to dominate the will of the other. Error is
almost sure to arise if the order of these propositions be
changed. The unconscionableness of the bargain is not the
first thing to be considered. The first thing to be considered G
is the relation of the parties. Were they such as to put one
in a position to dominate the will of the other"
(Emphasis added)
13. If there are facts on the record to justify the inference H
382 SUPREME COURT REPORTS [2013] 2 S.C.R.
A of undue influence, the omission to make an allegation of undue
influence specifically, is not fatal to the plaintiff being entitled
to relief on that ground; all that the Court has to see is that there
is no surprise to the defendant. In Hari Singh v. Kanhaiya Lal,
AIR 1999 SC 3325, it was held that mere lack of details in the
B pleadings cannot be a ground to reject a case for the reason
that it can be supplemented through evidence by the parties.
Ill. ADMISSIBILITY OF A DOCUMENT:
14. In State of Bihar & Ors. v. Radha Krishna Singh &
C Ors., AIR 1983 SC 684, this Court held as under:
"Admissibility of a document is one thing and its probative
value quite another - these two aspects cannot be
combined. A document may be admissible and yet may
D not carry any conviction and weight of its probative value
may be nil.. ..
Where a report is given by a responsible officer, which is
based on evidence of witnesses and documents and has
"a statutory flavour in that it is given not merely by an
E administrative officer but under the authority of a Statute,
its probative value would indeed be very high so as to be
entitled to great weight.
The probative value of documents which, however ancient
F they may be, do not disclose sources of their .information
or have not achieved sufficient notoriety is precious little."
15. Reiterating the above proposition in Madan Mohan
Singh & Ors v. Rajni Kant & Anr, AIR 2010 SC 2933, this
Court held that a document may be admissible, but as to
G whether the entry contained therein has any probative value may
still be required to be examined in the facts and circumstances
of a particular case. (See Also : H.Siddiqui (dead) by Lrs. v.
A.Ramalingam AIR 2011 SC 1492; Laxmibai (dead) thr. Lrs.
& Anr v. Bhagwantbuva (dead) thr Lrs. & Ors., JT 2013(2) SC
H 362)
JOSEPH JOHN PETER SANDY v. VERONICA 383
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.]
IV. ONUS OF PROOF: A
16. In Thiruvengada Pillai v. Navaneethammal & Anr.,
AIR 2008 SC 1541, this Court held that when the execution of
an unregistered document put forth by the plaintiff was denied
by the defendants, the ruling that it was for the defendants to
8
establish that the document was forged or concocted is not a
sound proposition. The first appellate Court proceeded on the
basis that it is for the party who asserts something to prove that
thing; and as the defendants alleged that the agreement was
forged, it was for them to prove it. But the first appellate Court
lost sight of the fact that the party who propounds the document C
will have to prove it. It was the plaintiff who had come to Court
alleging that the first defendant had executed an agreement of
sale in his favour. The defendant having denied it, the burden
was on the plaintiff to prove that the defendant had executed
the agreement and not on the defendant to prove the negative. D
17. In K. Laxmanan v. Thekkayil Padmini & Ors., AIR
2009 SC 951, this Court held that when there are suspicious
circumstances regarding the execution of the Will, the onus is
also on the propounder to explain them to the satisfaction of
the Court and only when such responsibility is discharged, the E
Court would accept the Will as genuine. Even where there are
no such pleas, but circumstances give rise to doubt, it is on
the propounder to satisfy the conscience of the Court.
Suspicious circumstances arise due to several reasons such
as with regard to genuineness of the signature of the testator, F
the conditions of the testator's mind, the dispositions made in
the Will being unnatural, improbable or unfair or there might be
other indications in the Will to show that the testator's mind was
not free. In such a case, the Court would naturally expect that
all legitimate suspicion should be completely removed before G
the document is accepted as the last Will of the testator.
18. In Krishna Mohan Ku/ @ Nani Charan Ku/ & Anr. v.
Pratima Maity & Ors., AIR 2003 SC 4351, it was held that when
fraud, mis-representation or undue influence is alleged by a H
384 SUPREME COURT REPORTS [2013] 2 S.C.R.
A party in a suit, normally, the burden is on him to prove such
fraud, undue influence or misrepresentation. But, when a
person is in a fiduciary relationship with another and the latter
is in a position of active confidence the burden of proving the
absence of fraud, misrepresentation or undue influence is upon
B the person in the dominating position, he has to prove that there
was fair play in the transaction and that the apparent is the real,
in other words that the transaction is genuine and bona fide. In
such a case the burden of proving the good faith of the
transaction is thrown upon the dominant party, that is to say,
C the party who is in a position of active confidence.
19. The instant case is required to be exercised in the light
of the aforesaid settled proposition of law.
20. There is no dispute that by the settlement deed dated
27.8.1981, late Shri B.P. Sandy had given House No. 23
D admeasuring 2413 Sq. Ft. to the daughter - respondent no.1
and House No. 22 admeasuring 730 Sq. Ft. to the son -
appellant. None of the attesting witnesses to these documents
had been examined by either of the parties, to ascertain
whether late B.P. Sandy, father of the parties, had expressed
E any intention in respect of the properties before them. Ex.A-6
dated 28.10.1983 a unregistered document is subsequent to
Exs.A 1 & A2, by which the father had expressed his will that
House No. 23 should be given to the son - appellant. The
appellant has examined one of the attesting witnesses Shri A.
F Bernard but the High Court came to the right conclusion that
as the respondent no.1 was not a party to the document, it has
no effect, whatsoever in law, on the case. Thus, in such a fact-
situation, it remains to be seen as what is the effect of
document dated 1.6.1982 Ex.A-3, the Memorandum of
G Agreement, and as to whether it had been obtained by the
appellant by undue influence. In the document, it is stated that
mistakes, in the settlement deed made by their father, having
been discovered only in the last week of May 1982, the parties,
have decided to rectify the error and for that purpose, they
H would execute and register necessary documents to rectify the
JOSEPH JOHN PETER SANDY v. VERONICA 385
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.]
mistake. The intention behind such rectification being, to make A
the appellant entitled to House No.23 and respondent No.1 to ·'
House No. 22.
21. Before the trial court, only the parties and Shri A.
Bernard, the attesting witness to the Deed (Ex.A-6), were
examined. The appellant also did not examine his father who B
was alive till 26.12.1983. The appellant could have taken resort
to the provisions under Order XVIII Rule 16 of the Code of Civil
Procedure, 1908, to examine this witness immediately. The
examination of Shri .A. Bernard, (PW-2) as to the genuineness
of Ex.A-6 was a futile .exercise, as the said document could not C
have any bearing on the decision of the case.
22. The trial court had reasoned that, even though the
appellant did not examine the attesting witness of Ex.A-3, the
defendant could have done it and prove the allegations she had D
made against her brother - appellant, and thus in the process
had wrongly shifted the burden of proof. The Court, further held
that it was the appellant who had wanted to get Ex.A-3
executed, thus, onus to prove was 011 him, had he discharged
the same, only then it could be shifted to the respondent no.1/
defendant. E
23. The court further held that as the respondent was an
educated woman and was serving as a teacher, her allegation
of undue influence to sign on blank non-judicial stamp papers,
cannot be relied upon and, thereby concluded that Ex.A-3 was F
a document executed by her voluntarily and by free will and,
hence, it was binding on her and it was not permissible for her
to say that it was a forged document.
The learned trial court had also taken note of a letter dated
19.7.1983 (Ex.B-3) written by the father of the parties to G
_respondent no.1 in which it was stated that he had given her
House No. 23. However, the said letter was simply brushed
aside by the court without giving any reason whatsoever.
24. The High Court while dealing with the above issues,
came to the conclusion that Ex.A-6 was totally incongruous to H
386 SUPREME COURT REPORTS (2013) 2 S.C.R.
A the natural human conduct and if the settlor i.e. the father of the
parties, had so intended to rectify the mistake, he could have
very well registered the rectification deed. The court further held
that once the Trial Court came to the conclusion that Ex.A-6 was
not worth of acceptance, it was not permissible for it to grant
B an equitable relief of rectification of deed. After relying upon a
large number of judgments of this Court, the High Court further
came to the conclusion that it was a case of undue influence
and as on the date of executing the alleged document Ex.A-3,
the respondent no.1 was unmarried and was dependent on her
c father and brother for settling her marriage and for sustenance,
as her marriage was solemnised only on 1.6.1983. The
respondent no.1 having contended that the plaintiff was in a
position to dominate her will, thus, the document Ex.A-3 was
termed as an unconscionable. It was a case, wherein, after
obtaining the signatures 4 0f the respondent no. 1 on some
0
papers, the document had been scribed. With respect to the
document, the High Court held that the said document Ex.A-3
being a typed document, ought to have contained the name of
the person who had scribed it. It further reasoned that the
E language used therein suggests that it was drafted by an expert
in the field and thus, the whole document is clouded with
suspicion and unexplained circumstances.
25. The High Court further held that Ex.A-3 being an
unregistered document, could not have been relied upon and
F it had wrongly been admitted. In our opinion, such a view may
not be legally correct. However, reversal of the said finding
would not tilt the balance in favour of the appellant.
26. In view of the law referred to hereinabove, it is crystal
clear that even though the document may be admissible, still
G its contents have to be proved and in the instant case, as the
appellant did not examine either the attesting witnesses of the
document, nor proved its contents, no fault can be found with
the judgment impugned before us. Section 26 of the Act,
provides for rectification of a document if the parties feel that
H they have committed any mistake. Also, ii was only, the father
JOSEPH JOHN PETER SANDY v. VERONICA 387
THOMAS RAJKUMAR [DR. B.S. CHAUHAN, J.)
of the parties who could have sought rectification of the deed. A
Mere rectification by parties herein does not take the case
within the ambit of Section 26 of the Act. Taking note of the
statutory provisions of Section 16 of the Contract Act and the
parameters laid down by this Court for application of doctrine
on undue influence, the High Court has reached a correct B
conclusion.
27. In view of the above, we reached the following
inescapable conclusions:
(i) Neither of the party has examined the attesting witness C
to document Ex.A-3. As such a witness could have explained
the conduct of the parties and deposed as to who had prepared
the document Ex.A-3.
!'
(ii) It is evident from the language of the deed (Ex.A-3) that !
it has been prepared either by a lawyer or a deed writer. D
(iii) The said document (Ex.A-3) does not bear either the
signature, or the address of the scribe. The appellant has also
not examined the scribe, nor has he disclosed who such person
was. This would have revealed the correct position with respect
to whether the respondent no.1 had signed blank papers, or E
whether she had come to him for the execution of the document
with the attesting witnesses and appellant. Additionally, the
scribe could have explained who had bought the non judicial
stamp paper for the document Ex. A-3.
(iv) The consideration for executing document (Ex.A-3) F
seems to be the redemption of the property mortgaged jointly
by both the parties, to one Advocate Krishnaswamy, with whom
the deeds of title Ex.A1 and Ex.A2 had been kept as security.
The said mortgagee has not been examined by the appellant
to show as to whether the respondent No.1 was also a party to G
the mortgage and who had placed the title deed of her property
with him.
(v) In his examination-in-chief, the appellant had made a
false statement that he was not made aware of the settlement H
388 SUPREME COURT REPORTS [2013] 2 S.C.R.
A deed Ex.A-1 till 26th June of 1982, as it was given to him by
his mother on that date before her death. Such a statement
stands completely falsified, as the document Ex.A-1 reveals,
that he had been put in possession by his father, with the
permission of respondent No.1 , as the property in Door No.23
B had been given to her and it was made clear that the
respondent No .1 had absolute right of enjoyment to the said
property.
(vi) Document Ex. 83 dated 29th July 1983 is subsequent
to document Ex.A-6, wherein settlor Mr. Sandy had written to
C respondent No.1 that he had given Door No.23 to her. Thus,
the settlor never intended otherwise.
(vii) The document Ex.A3 shows that the mistake was
discovered in the last week of May 1982. So it was agreed to
rectify the error, therefore the parties undertook the same as
· D a rectification under Section 26 of the Act. In the written
statement filed by the appellant, in the suit filed by the
respondent No.1 , Paragraph no. 7 & 9 refers to the mistake
and also, the rectification. Thus, the document Ex.A-3 cannot
be read as an "agreement to exchange." It can be read only
E as a rectification deed, which could have been done only by
the settlor and not by the contesting parties.
(viii) Considering the respective area of the properties
bearing nos.22 and 23, the contract can definitely be held
F "unconscionable".
28. In view of the above, we are of the considered opinion
that appeals are devoid of any merit. The same are accordingly
dismissed. No costs.
CIVIL APPEAL NOs. 2184-2185 OF 2004
G
These appeals are. squarely covered by th~ aforesaid
decision in the main matters i.e. C.A No. 2178-2179 of.2004.
The same are, accordingly, dismissed.
R.P. Appeals dismissed.
H
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