SHANTI BUDHIYA VESTA PATEL AND ORS.versusNIRMALA JAYPRAKASH TIWARI AND ORS.
- Citation
- 2010 INSC 229
- Decided
- 21 April 2010
- Disposal
- Dismissed
- Bench
- MUKUNDAKAM SHARMA
Holding
The heirs, having executed irrevocable POAs and affirmed the prior transfer, are estopped from challenging the consent decree, and the decree stands as valid.
Summary
The case arose from a dispute over a suit property originally held by Budhiya Vesta Patel, who transferred his rights to respondent No.9 via a Development Agreement and an irrevocable Power of Attorney (POA). After Patel's death, his heirs (the appellants) executed further irrevocable POAs in favour of the same respondent, who later entered into a consent settlement with respondents No.7 and No.8, resulting in an eviction decree. The appellants challenged the consent decree alleging fraud, coercion and that the POAs were revoked by filing police complaints and by executing a new POA in favour of another person. The Supreme Court held that the heirs, having affirmed the earlier agreement and executed irrevocable POAs, were estopped from questioning the acts of the POA holder; mere police complaints do not revoke a registered POA; and the burden of proving fraud or coercion under Order 23 Rule 3 CPC lies on the party alleging it, which the appellants failed to discharge. Consequently, the consent decree was upheld and the appeals dismissed.
Issues considered
- The validity of the consent decree entered into by the POA holder on behalf of the heirs.
- Whether the heirs could revoke the irrevocable POAs by filing police complaints or by executing a new POA.
- The applicability of Order 23 Rule 3 CPC and who bears the burden of proving fraud or coercion.
- The scope of authority conferred by a POA to compromise or settle disputes.
Legislation cited
- Code of Civil Procedure, 1908s. Order 23 Rule 3
- Indian Contract Act, 1872s. Section 202
Subjects
Judgment
[2010] 4 S.C.R. 958
A SHANTI BUDHIYA VESTA PATEL AND ORS.
v.
NIRMALA JAYPRAKASH TIWARI AND ORS.
(Civil Appeal Nos. 3549-3551 of 2010)
B
APRIL 21, 2010
[DR. MUKUNDAKAM SHARMA AND R.M. LODHA, JJ.]
Deed and document:
C Power of Attorney (POA) - Party executing the POA is
bound by the acts of the POA holder- On facts, predecessor-
in-interest of appellant executed POA in favour of respondent .
9 - On the death of predecessor, all the appellants executed
POA in favour of respondent 9 - On the basis of POA,
D respondent 9 entered into consent terms with opposite parties
- Consent terms challenged by appellants - Held: Appellants
are estopped from questioning the, acts done by respondent
9 - Court can accept the consent terms entered into by the
POA holder on behalf of the parties and consent decree so
E obtained would be valid - Compromise/Settlement- Estoppel
- Consent decree - Power of Attorney.
Code of Civil Procedure, 1908:
0.23 r.3 - Compromise under - Burden to prove that
F ·compromise tainted by fraud or coercion - Held: Lies on the
party who alleges the same - On facts, particulars in support
of the allegation of fraud or coercion in obtaining consent
decree not properly pleaded as required by law - Consent
decree would remain valid - Compromise/settlement -
G Consent decree.
The original plaintiff, 'BVP' was the predecessor of
the appellants, who was appointed as a watchman by one
'RKT' for taking care of the suit property and for this
H 958
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 959
JAY™KASH TIWARI
_purpose, a Kachc'ha shed on the suit property was A
provided to him. In due course of time, 'BVP' extended
the shed to construct 38 rooms which were let out by him.
After the death of the real owner of the suit property, suit
property was recorded in the name of wife of the owner;
respondent no.7. In 1992, by way of consent decree, in a B
suit between respondent 7 and 8, the latter became the
owner of the suit property. In 1994, 'BVP' entered into a
Development Agreement with respondent 9 whereby
'BVP' transferred his rights, title and interest in the suit
property in favour of respondent 9. In 1999, 'BVP' filed a c
suit against respondent no.7 and 'RKT', the predecessor-
in-title of respondent no.1 to 6 for seeking a declaration
that• he was the owner of the suit property by adverse
possession. 'RKT' also filed a suit for declaration of title
in his favour. Against this, respondents 7 and 8 filed a o
counter claim seeking eviction of 'BVP' and his tenants
from the suit property.
The trial court dismissed the suit filed by 'BVP' and
allowed the counter claim .filed by the respondents 7 and
8. Appeals were filed against the order of trial court. E
Respondent 9 who was Power of Attorney holder of 'BVP'
also filed ai;i appeal. During the pendency of appe.als,
'BVP' died on 15.12.2004. On 7.1.2005, each of the
appellants executed an irrevocable Power of Attorney in
favour of respondent 9. On the basis of Power of Attorney, F
respondent 9 sought for impleadment of appellants.
On 26.4.2006, the appellants executed a Power of
Attorney in favour of another person 'NMP' on the ground
that respondent 9 colluded with respondent 8 and G
coerced them to enter into a compromise with
respondent 7 and 8. The appellants also alleged that they
were threatened with dire consequences by respondent
8 and 9 and in this regard, they had lodged complaint
with the police and despite this, respondent 9 entered into H
960 SUPREME COURT REPORTS (2010) 4 S.C.R.
A consent terms with respondents 7 and 8 and thereafter
submitted to the eviction decree. On 13.6.2006, High
Court allowed the application filed by respondent 9. The
same was not challenged by any of the tenants.
The· appellants filed applications before the High
8
Court praying for recall of order dated 13.6.2006 alleging
that fraud was played upon the High Court by filing the
said consent terms. High Court dismi$sed the
applications. Hence the app.eals. -
C Dismissing the
. . appeals,
· . the G6urt
HELD: 1 ..1 ~; A .De~elopment ·Agree~en_t dated
12.01.1994 was entered into between 'BVP' and
respondent no. 9 whereby and whereunder 'BVP' had
0 transferred his rights, titl.e and interest in the suit premises
in favour of respondent no. 9 for a consideration of Rs
2,00,000/-. The records
'
showed that the said amount .
was
fully paid and ahfo that the said agreement was registered
~it,h the office of the Sub-Registrar. Thus, by entering into
E the said agreement and accepting the said consideration
in full and final satisfaction for the transfer. of the
-- suit
property in favour of the respondent no. 9, 'BVP' divested
himself of his right, title and interest in the suit property.
Pursuant to the said agreement, 'BVP' executed an
irrevocable Power of Attorney dated 17.02.1994 irffavour
F of respondent no. 9 for a period of 15 years. A Deed of
Confirmation dated 15.12.1995 duly registered on the
same date was executed between 'BVP' and respondent
no. 9 by which 'BVP' confirmed that the said Development
Agreement was subsisting, valid and in full force and
G would be binding on the heirs, executors, administrators
and assigns of the parties to the said Development
Agreement. This was followed by a Declaration dated
23.08.2001 by 'BVP' wherein he acknowledged the rights,
title and interest of the respondent no. 9 over the suit
H
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 961
JAYPRAKASH TIWARI
property, the receipt of consideration of Rs.2,00,000/- and A
extended the period of the said Power of Attorney
indefinitely and undertook to ratify and confirm the acts
done by respondent no. 9. [Paras 19, 21] [971-B-E; 972-
B-Dl
B
· 1.2. The appellants challenged the consent decree
passed by the High Court, particularly when each one of
them had, upon the death of 'BVP', executed an Affidavit-
cum-Declaration as well as separate Powers of Attorney
dated 07 .01.2005 in favour of the respondent no. 9. All the C
said Powers of Attorney were irrevocable and duly
registered for valuable consideration. In the said
affidavits, the appellants categorically admitted the right
of ownership of respondent no. 9 over the suit property.
By executing the said Powers of Attorney in favour of the
respondent no. 9, the appellants had cons.ciously and D
willingly appointed, nominated, constituted and
authorized respondent no. 9 as their lawful Power of
Attorney to do certain deeds, things and matters. The
appellants also constituted respondent no. 9 as their
lawful attorney authorizing him, to sig11 petitions, appear· E
before the Courts and also to compromise or corppound
disputes. ThuSl, the appellants were estopped from
questioning the acts done by respondent no. 9. The ·
appellants could not be said to have any right to assail
the consent decree passed by the High Court. The fact F
that under the consent terms the appellants were paid a
sum of Rs 10,00,000/- when they were not entitled to the. ·
same also reinforces conviction that the consent terms
arrived at were just. [Paras 23, 24, 25, 27] (972-E-G; 973-
B-C, G-H; 974-B-D] G
Jineshwardas (D) by LRs. and Ors. v. Jagrani (Smt.) and
Another (2003) 11 SCC 372, referred to.
1.3. The predecessor-in-interest of the appellants had
nothing remaining in the suit property after he had H
962 SUPREME COURT REPORTS [2010] 4 S.C.R.
A transferred the same under the said Development
Agreement to respondent no. 9 for a full and final
consideration of Rs 2,00,0001-. Thus, the predecessor-in
interest of the appellants had no right, title or interest
subsisting in the suit property. The appellants are the
B legal heirs of 'BVP' and as such they could not have
claimed a title better than that of 'BVP'. A general
proposition of law is that no person can confer on
another person, a better title than he himself has. [Para
28) [97 4-E-G]
c Mahabir Gape v. Harbans Narain Singh 1952 SCR 775;
Asaram v. Mst. Ram Kali 1958 SCR 986; A// India Film
Corporation Ltd. v. Raja Gyan Nath (1969) 3 SCC 79; Byram
Pestonji Gariwala v. Union Bank of India and Others (1992)
1 sec 31, referred to.
D
2. It is settled positiOJl of law that the burden to prove
that a compromise arrived at under Order 23 Rule 3 CPC,
was tainted by coercion or fraud lies upon ttfe party who
alleges the same. However, in the facts and
E circumstances of the case, the appellants, on whom the
burden lay, have failed to do so. Although, the application
for recall did allege some coercion, it could not be said
to be a case of established coercion. Three criminal
complaints were filed, but the appellants did not pursue
F the said complaints to their logical end. It is a plain and
basic rule of pleadings that in order to make out a case
of fraud or coercion, there must be an express allegation
of coercion or fraud and all the material facts in support
of such allegations must be laid out in full and with a high
G degree of precision. In other words, if coercion or fraud
is alleged, it must be set out with full particulars. In the
present case, the appellants, however, failed to furnish
the full and precise particulars with regard to the alleged
fraud. Since the particulars in support of the allegation
of fraud or coercion were not properly pleaded as
H required by law, the same must fail. Rather the Affidavits-
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 963
JAYPRAKASH TIWARI
cum-Declarations executed by the appellants indicate A
that no coercion or fraud was exercised upon the
appellants by respondent no. 8 or 9 at any point of time
and thus the consent decree cannot be said to be
anything but v.alid. [Paras 31- 33] [975-H; 976-A-D; 977-
A-B] B
Shankar Sitaram Sontakke v. Balkrishna Sitaram
Sontakke AIR 1954 SC 352; Loonkaran v. State Bank, Jaipur
(1969) 1 SCR 122, relied on. ·
'
Bishundeo Narain v. Seogeni Rai 1951 SCR 548, C
referred to\ ·, '
3. The allegation of appellants that they had revoked
the Powers of Attorney executed by them in favour of the
respondent no. 9 by filing complaints with the police is 0
devoid of merit. Although there is no denying. the fact that
three complai~1(s were filed on three different dates with
the police agaiost the alleged harassment ari·d threats by
respondent nos. 8 and 9, it is difficultto understand how
the Powers of Attorney executed by the appellants or E
their predecessor-in-interest stood revoked. The record
of the case would reveal that each of the complaints was
filed by a separate person - the first complaint was filed
by the appellants themselves, the second by an Advocate
and the third by one 'NMP', who was himself a builder.
All these complaints came to be filed when said 'NMP' F
cam~ into the picture. Further, all the Powers of Attorney
execut~d in favour of respondent no. 9 as also all the
deeds and documents entered into between the
predecessor-in-interest of the appellants and respondent
no. 9 were duly registered with the office of the Sub- G
Registrar. Neither any document nor any of the Powers
. of Attorney was ever got cancelled by the appellants.
[Para 36] [978-A-E)
4. The Power of Attorney in favour of said 'NMP' was H
964 SUPREME COURT REPORTS [2010] 4 S.C.R.
A executed by the appellants on 26.04.2006 whereas the
first complaint was filed with the police on 01.05.2006 and
the consent terms were entered into on 22.05.2006. The
consent decree was actually passed by the High Court
on 13.06.2006. The appellants, thus, had ample time and
B opportunity with them to bring the said allegations to the
notice and knowledge of the High Court at any time
between 26.04.2006 and 13.06.2006. The appellants had
considerable amount of time available with them. With
regard to the complaints filed, the appellants did not take
c any follow up action to bring them their logical end.It is
crystal clear that the appellants chose not to avail an
opportunity which was available to them. In such
circumstances, it would not be appropriate to say that the
deeds and documents as well as the Powers of Attorney
executed in favour of respondent no. 9 stood revoked
0
merely by filing complaints with the police. A registered
document has a lot of sanctity attached to it and this
sanctity cannot be allowed to be lost without following
the proper procedure. The stand taken by the appellants
throughout that they had, by executing a Power of
E Attorney in favour of 'NMP', revoked the Powers of
Attorney executed in favour of respondent no. 9 is found
to be baseless. In fact, a look at the terms of the Power
of Attorney executed in favour of 'NMP' would show to
the contrary. [Paras 37 to 40] [978-G-H; 979-A-F]
F
5. Respondent no. 9 in the counter-affidavit filed in
this Court, prayed for declaring the consent terms to be
cancelled and annulled on the ground that the consent
terms were rendered infructuous due to the failure of
G respondent no. 8 to perform his obligations as per the
. consent terms. A money game is being played. Since the
stakes are high, each party is trying to draw the
maximum advantage. There seems to be no· other reason
for respondent no. 9 having adopted such a course of
H action. ·in view of this, entering into the compromise as
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 965
JAYPRAKASH TIWARI
also filing of the same in the High court by respondent
no. 9 on behalf of the appellants was without any fraud
and well within the scope of his authority. [Paras 41 and
42] [980-C-F]
Case Law Reference:
12003) 11 sec 372 . referred to Para 26
1952 SCR 775 All referred to Para 28
1958 SCR 986 referred to ·Para 28
(1969) 3 sec 79 referred to Para 28
(1992) 1 sec 31 referred to Para 30
1951 SCR 548 referred to Para 32
AtR 1954 SC 352 relied on. Para 34
(1969) 1 SCR 122 relied on Para 35
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
3549-3551 of 2010. ·
From the Judgment & Order dated 12.10.2007 of the High
Court of Judicature. at Bombay, in Civil Application No. 3628
of 2006 in First Appeal No. 1388 of 2003, Civil Application No.
3629 of 2006 in First Appeal No. 1389 of 2003 arid Civ.il
Application No. 3630 of 2006 in First Appeal No. 1390 of 2003 ..
WITH
C.A. No. 3552-3554 of 2010.
Dr. Rajeev Dhavan, Pallav Sishodia, Ashok H. Desai,
· Dushyant A. Dave, Jaydeep Gupta, Dilip A. Taur, Sagar Pawar,
Santosh Kumar Tripathi, Shirin Khajuria, Kanika Gomber, .
Mallika Joshi, Rajiv Kumar Dubey, Rajan Narain, Mohan
Jayakara, Javaid Muzaffar, Ashwin S. Umesh Kumar Khaitan,
Anil Kumar for the appearing parties. ·
966 SUPREME COURT REPORTS [2010) 4 S.C.R.
A The Judgement of the Court was delivered by
DR. MUKUNDAKAM SHARMA, J. 1. Leave granted.
·"" 2. In the present appeals, the appellants have challenged
the legality and validity of the order dated 12.10.2007 passed
B by the High Court of Judicature at Bombay whereby the High
Court dismissed all the three Civil Applications preferred by the
appellants herein seeking recall of an earlier order dated
13.06.2006 passed by the High Court which was based on the
consent terms duly signed by all the parties.
c
3. In order to properly appreciate the precise nature and
scope of the controversy arising in the present appeals, it would
be appropriate as well as expedient to set out a brief statement
of pertinent facts. The original appellant, Budhiya Vesta Patel,
0 was the predecessor-in-interest of the present appellants.
Budhiya Vesta Patel was appointed as a watchman by one R.K.
Tiwari, who was cultivating grass on the suit property since
1954-55, to take care of the suit property and for this a Kachcha
shed on the suit property was provided to him. In due course
E of time, Budhiya Vesta Patel extended the shed to construct a
chawl known as Budhiya Patel Chawl consisting of 38 rooms,
which were let-out by him.
4. After the death of the real owner of the suit property, Mr.
Anant Mahadeo Tambe, husband of Leela Anant Tambe,
F respondent no. 7 herein, the suit property stood recorded in the
name of respondent no. 7. By means of a consent decree
passed in Suit No. 1230 of 1992 between respondent no. 7
and M/s. Hitesh Enterprises, respondent no. 8 herein, the latter
became the owner of the suit property.
G
5. In the year 1999, Budhiya Vesta Patel filed a suit against
respondent no. 7 and said R.K. Tiwari, the predecessor-in-title
of Respondent nos. 1 to 6 herein, before the Bombay City Civil
Court, Bombay being Suit No. 5163 of 1999 seeking a
H declaration that he is the owner of the suit property by adverse
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 967
JAYPRAKASH TIWARI [DR. MUKUNDAKAM SHARMA. J.l
possession. Since said RX. Tiwan also claimed title to the suit
property, he also filed a suit.
6. Against this, a counter-claim being Counter Claim No.
11 of 2002 seeking eviction of Budhiya Vesta Patel and his
tenants from the suit property was filed by respondent no. 7 and
respondent no. 8. The aforesaid suits were contested and on
the basis of the pleadings of the parties, issues were framed
and evidence was led.
7. The trial Court by its judgment and order dated
10.02.2003 and 11.02.2003 dismissed the suit filed by Budhiya
Vesta Patel and allowed the counter claim filed by respondent
Nos. 7 and 8. The trial Court negatived Budhiya Vesta Patel's
claim of ownership of the suit property by adverse possession
since his initial possessio,n of the suit property was a
permissive possession.
8. Aggrieved by the said judgment and order, several
appeals came to be filed before the High Court of Bombay.
Budhiya Vesta Patel had filed two appeals, being F.A. No. 1388
of 2003 and F.A. No. 1389 of 2003; the former against the
dismissal of the suit filed by him and the latter against the
decree passed against him in the counter claim. The third
appeal being, F.A. No. 1390 of 2003, was preferred by one
Yusuf Vali Mohd. Bilikhiya (respondent no. 9 herein), who was
the Power of Attorney holder of Budhiya Vesta Patel.
Respondent Nos. 1 to 6 also filed an appeal against the
judgment and order of the trial Court which was registered as
F.A. No. 1523 of 2003. However, subsequently, the same was
withdrawn.
9. During the pendency of the aforesaid appeals, Budhiya
Vesta Patel died on 05.12.2004. On 07:01.2005, each of the
present appellants executed an irrevocable Power of Attorney
in favour of respondent no. 9. On the basis of the said Powers
of Attorney, respondent no. 9 filed three separate applications
being Civil Application Nos. 3180 of 2005, 3181 of 2005 and
968 SUPREME COURT REPORTS [2010) 4 S.C.R.
A 992 of 2005 in the aforesaid three appeals wherein he prayed
that the legal representatives of Budhiya Vesta Patel, i.e., the
appellants be brought on record in all the three appeals in place
of Budhiya Vesta Patel.
10. On 26.04.2006, the appellants executed a Power of
8
Attorney in favour of one Narender M. Patel. It is alleged by the
present appellants that respondent no. 9 colluded with
respondent no. 8 and, therefore, respondent no. 9 forced and
coerced them to enter into a compromise with respondent nos.
7 and 8, which was strongly objected to by the appellants. On
C this, the appellants further allege that they were threatened with
dire consequences by the aforesaid respondents.
Consequently, the appellants got filed three complaints dated
01.05.2006, 17.05.2006 and 23.05.2006 with the police
against respondent nos. 8 and 9. However, it is alleged that
D despite this, respondent no. 9 for himself and for and on behalf
of the appellants as their Power of Attorney holder entered into
consent terms with respondent nos. 7 and 8 in F.A. No. 1389
of 2003 and thereby submitted to the decree of eviction. The
High Court, by its order dated 13.06.2006, allowed the
E aforesaid applications filed by respondent no. 9 and also
disposed of the said appeals after taking on record the consent
terms entered into between respondent nos. 7 and 8 on one
hand and respondent no. 9 on the other. Subsequent to filing
of the consent terms, the names of the tenants were deleted
F from the array of the parties. No appeal was, however, filed by
any tenant.
11. The appellants f~ed, before the High Court, three civil
applications being Civil Applications Nos. 3628 of 2006, 3629
G of 2006 and 3630 of 2009 praying for recall of aforesaid order
dated 13.06.2006 alleging that fraud had been played upon the
High Court by filing the said consent terms. By a common order
dated 12.10.2007, the High Court dismissed the aforesaid
applications. Hence the parties are, in appeal, before us.
H 12. Before we proceed to give an account of the
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 969
JAYPRAKASH TIWARI [DR. MUKUNDAKAM SHARMA, J.)
submissions made by the counsel appearing for the parties,
we wish to make note of a development that took place after
filing of this SLP by the appellants. After this SLP was filed,
respondent no. 9 filed a civil application before the High Court
praying for setting aside the consent decree dated 13.06.2006
on the ground that respondent no. 8 had failed to perform his
obligation under the consent terms, i.e., payment of Rs 1 crore
and 15 lakhs to him. The High Court, by an order dated
06.07.2009, dismissed the said application.
13. We may now direct our attention to the rival
submissions made before us by the parties.
14. Dr. Rajeev Dhawan, learned senior counsel appearing
for the appellants, submitted that the aforesaid consent terms
were filed without the knowledge and consent of the appellants
and as such the consent decree was passed without taking the
consent of the appellants who were necessary parties. It was
also submitted that the purpose behind executing ·a General
Power of Attorney in favour of respondent no. 9 by Budhiya
Vesta Patel and, upon his death, by the appellants was to
safeguard their property by issuing clear instructions to him. It
was the stand of the Dr. Dhawan that the fraudulent act of the
respondent no. 9 in arriving at a settlement with the respondent
·nos. 7 and 8 and consequently filing the same in the High Court
without obtaining the consent of the appellants amounted to a
breach of the scope of the authority conferred on him by the
appellants and thus the consent decree passed by the High
Court was a nullity. Dr. Dhawan tried to further assail the validity
of tbe consent terms as also the consent decree on the ground
that the terms of the compromise arrived at were iniquitous.
15. It was further submitted that since fraud had been
played by respondent no. 9 on the appellants by trying to siphon
off the properties belonging to the appellants, the Court has a
responsibility to protect the rights and interests of the appellants
and therefore the consent decree is required to be set aside
and quashed. In the course of his submissions, Dr.. Dhawan
970 SUPREME COURT REPORTS [2010] 4 S.C.R.
· Aalso referred to the three complaints filed by the appellants with
the police against harassment and threats given to them by
respondent nos. 8 and 9. Dr. Dhawan pointed out before us
that coercion and goon tactics, in addition to fraud, had been
employed by respondent nos. 8 and 9 to force the appellants
B to sign the consent terms. ·
16. It was further submitted that the High Court erred in
dismissing the applications filed by the appellants seeking
recall of its earlier order. The High Court failed to see through
the monstrous designs of respondent no. 9 even though ample
C material was placed on record anct allegations of fraud were
clearly made before the High Court.
17. On the other hand, Mr. Ashok H. Desai, Mr. Dushyant
Dave and Mr. Jaydeep Gupta, learned senior counsel
D appearing for the respondent Nos. 7 and 8 as also respondent
No. 9 strongly refuted the aforesaid submissions while bringing
to the notice of the Court that, in fact, Budhiya Vesta Patel had
himself entered into a Development Agreement dated
12.01.1994 with respondent no. 9 whereby the former
E transferred his rights, title and interest in the suit property to the
latter for a consideration of Rs. 2,00,000/-which was fully paid
by respondent no. 9 to the Budhiya Vesta Patel and accepted
by him prior to the execution of the said agreement. It was
further submitted that the irrevocable Powers of Attorney which
F were executed in favour of respondent no. 9 by Budhiya Vesta
Patel and, upon his death, by the appellants made the acts,
which were carried out by respondent no. 9 in the best interest
of the appellants, binding on the appellants and that there
existed no valid ground for setting aside the compromise
G arrived at between the parties and the consent decree passed
by the High Court.
18. It was also submitted that as the appellants had failed
to establish that under the term.s of the Power of Attorney which
had executed in his favour by the appellants, respondent No. 9
H was not authorized to enter mto a settlement of the kind he had
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 971
JAYPRAKASH TIWARI [DR. MUKUNDAKAM SHARMA, J.]
entered, it could not be said that there was a conflict of interest
between the appellants and respondent No. 9 who was the
agent of the appellants.
19. In the light of the rival submissions made by the counsel
appearing for the parties, we have perused the entire record
before us. There is no dispute with regard to the fact that a
Development Agreement dated 12.01.1994 had been entered
into between Budhiya Vesta Patel and respondent no. 9
whereby and whereunder Budhiya Vesta Patel transferred his
rights, title and interest in the suit premises in favour of
respondent no. 9 for a consideration of Rs 2,00,000/-. The
recOids show that the said amount was fully paid and also that
the said agreement was registered with the office of the Sub-
Registrar. Thus, by entering into the said agreement and
accepting the said consideration in full and final satisfaction for
the transfer of the suit property in favour of the respondent no.
9, Budhiya Vesta Putel divested himself of his r,!ght, title and
interest in the suit µroperty. Pursuant to the said agreement,
Budhiya Vesta Patel executed an irrevocable Power of Attorney
dated 17.02.1994 in favour of respondent no. 9 for a period of
15 years.
20. We may here refer to some of the relevant portions of
the aforesaid agreement, which are being reproduced
hereinbe!o11'f
"AND WHEREAS it is hereby further agreed by and
between the parties hereto that the Developer shall be at
full liberty to assign, transfer the benefit of the Agreement
in respect of the aid property to party or parties of his
choice at such terms and conditions as to be or he may
deem fit and proper without any further consultation or
consent of the Owner in that behalf
4. The consideration payable by the developer to the
Owner for his share right, title, interest has been fixed at
Rs. 2,00,000/- (Rupees two lakhs only) and the said
972 SUPREME COURT REPORTS [2010] 4 S.C.R.
A consideration has been paid by the Developer to the
Owner on or before the execution of these presents (the
receipt and payment whereof the Owner doth hereby
admit and acknowledge and of and from the same do
hereby forever discharge the Developer "
B 21. Further, a Deed of Confirmation dated 15.12.1995
duly registered on the same date was executed between
Budhiya Vesta Patel and respondent no. 9 by which Budhiya
Vesta Patel confirmed that the aforesaid Development
Agreement was subsisting, valid and in full force and would be
C binding on the heirs, executors, administrators and assigns of
the parties to the said Development Agreement. This was
followed by a Declaration dated 23 08.2001 by Budhiya Vesta
Patel wherein he acknowledged the rights, title and interest of
the respondent no. 9 over the suit property~ the receipt of
D consideration of Rs 2,00,000/- and extended the period of the
said Power of Attorney indefinitely and undertook to ratify and
confirm the acts done by respondent no 9.
22. The appellants have challenged the consent decree
E passed by the High Court praying that the same should be set
aside as it was obtained by playing a fraud up<Jn them. We do
not feel persuaded to hold so for a number of reasons which
are being set out in the paragraphs below.
23. It is interesting to see the appellants challenge the
F consent decree passed_ by the High Court, particularly when
each one of them had, upon the death of Budhiya Vesta Patel,
executed an Affidavit-cum-Declaration as well as separate
Powers of Attorney dated 07.01.2005 in favour of the
respondent no. 9. All the said Powers of Attorney were
G irrevocable and duly registered for valuable consideration. A
bare perusal of the said Affidavits-cum-declarations would
reveal that the appellants knew that respondent no. 9 was the
constituted attorney of their predecessor-in-interest and that the
suit property had been transferred to respondent no. 9 for a
H consideration of Rs 2,00,000/-. It is pertinent to note that in the
SHANTI BUDhlYA VESTA PATEL v. NIRMALA 973
JAYPRAKASH TIWARI [DR. MUKUNDAKAM SHARMA, J.]
said Affidavits-cum-Declarations each of the appellants had
undertaken to be bound by all the deeds and documents
entered into between their predecessor-in-interest and
respondent no. 9 and they had also confirmed and ratified the
said deeds and documents thereby conferring right on
respondent no. 9 to enforce those at all times in the future. In
fact, in the said affidavits, the appellants categ01ically admitted
the right of ownership of respondent no. 9 over the suit property.
24. By executing the said Powers of Attorney in favour of
the respondent no. 9, the appellants had consciously and
willingly appointed, nominated, constituted and authorized
respondent no. 9 as their lawful Power of Attorney to do certain
deeds, things and matters. The relevant clauses are being
extracted hereinbelow: -
"6. To sign Petitior:i or present Petitions or Petition, to file:
suit and to sign and verify claims, written statements,
pleadings, applications, returns, and to appear, act in any
Court- Civil, Criminal, Court Receiver and /or Revenue,
original or appellate or Revisional or before any competent
authority, Officer, or Officer for in respect of or in
connection with the aforesaid and with buildings etc.
thereon and/or any other proceedings, suit or appeal in
connection with the management and superintendence cif
my said lands for any purpose whatsoever necessary.
7. To compromise, compound and/or negotiate and settle
any dispute or disputes and refer the same to Arbitration."
25. It is thus crystal clear that the appellants had not only
confirmed and ratified the deeds and documents entered into
betwee111' their predecessor.-in-interest and respondent no. 9 but
also constituted respondent no. 9 as their lawful attorney
authorizing him, inter alia, to sign petitions, appear before the
Courts and also to compromise or compound disputes. In fact,
the appellants are estopped from questioning the acts done by
respondent no. 9.
974 SUPREME COURT REPORTS (2010] 4 S.C.R.
A 26. The learned counsel appearing for respondent No. 7
placed reliance on a decision of this Court in Jineshwardas (0)
by LRs. And Ors. Vs. Jagrani (Smt.) and Another reported in
(2003) 11 SCC 372 to argue that the party executing the Power
of Attorney is bound by the acts of the Power of Attorney holder
B and that the Court could accept a compromise terms entered
into by the Power of Attorney holder on behalf of the parties
and that such a compromise would be a valid compromise.
27. We are of the considered view that in the aforesaid
C circumstances, the appellants could not be said to have any
right to assail the consent decree passed by the High Court.
We do not think it proper for the appellants to question and
challenge the consent terms signed and submitted by
respondent no. 9 on their behalf which were duly accepted and
acted upon by the High Court and which we also find to be just
D and reasonable. The fact that under the consent terms the
appellants were paid a sum of Rs 10,00,000/- when they were
not entitled to the same also reinforces our conviction that the
consent terms arrived at were just.
E 28. As noted by us in one of the preceding paragraphs,
the predecessor-in-interest of the appellants had nothing
remaining in the suit property after he had transferred the same
under the said development agreement to respondent no. 9 for
a full and final consideration of Rs 2,00,000/-. Thus, the
F predecessor-in interest of the appellants had no right, title or
interest subsisting in the suit property. The appellants are the
legal heirs of Budhiya Vesta Patel and as such they could not
have claimed a title better than that of Budhiya Vesta Patel. The
predecessor-in interest of the appellants had relinquished his
G title. right vr interest over/in the suit property in favour of
respondent no. 9. A general proposition of law is that no person
can confer on another a better title than he himself has.
[Reference in this regard may be made to the decisions of this
Court in Mahabir Gope v. Harbans NArain Singh 1952 SCR
775; Asaram v. Mst. Ram Kali 1958 SCR 986 and All India
H
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 975
JAYPRAKASH TIWARI [DR. MUKUNDAKAM SHARMA, J.]
Film Corporation Ltd. v. Raja Gyan Nath (1969) 3 SCC 79:] A
29. It is also the case of the appellants that there was no
due cor.1pliance with the provisions of Order 23 Rule 3. The
counsel appearing for the appellants submitted that
responsibility of the Court is to see that the consent terms have
8
been arrived at in satisfaction of all the parties and that injustice
is not caused to any party. The counsel further submitted that
one of the modes by which Order 23 Rule 3 ensured this was
by requiring the compromise agreement to be in writing and
signed by the parties.
c
30. This was strongly refuted by the counsel appearing for
the respondents stating that it is well settled that under Order
23 Rule 3 of the Code of Civil Procedure, 1908, a compromise
may be signed by the counsel or the Power of Attorney holder.
Counsel for the respondents referred to and relied upon the D
judgment of this Court in Byram Pestonji Gariwala Vs. Union
Bank of India and Others (1992) 1 sec 31 where it was held
thus:
"39. To insist upon the party himself personally signing the E
agreement or compromise would often cause undue delay,
loss and inconvenience, especially in the case of non-
resident persons. It has always been universally understood
that a party can always act by his duly authorised
representative. If a power-of-attorney holder can enter into F
an agreement or compromise on behalf of his principal,
so can counsel, possessed of the requisite authorisation
by vakalatnama, act on behalf of his client. Not to
recognise such capacity is not only to cause much
inconvenience and loss to the parties personally, but also
to delay the progress of proceedings in court. If the G
legislature had intended to make such a fundamental
change, even at the risk of delay, inconvenience and
needless expenditure, it would have expressly so stated:'
31. It is settled position of law that the burden to prove that H
976 SUPREME COURT REPORTS [2010] 4 S.C.R.
A a compromise arrived at under Order 23 Rule 3 of the Code
of Civil Procedure was tainted by coercion or fraud lies upon
the party who alleges the same. However, in the facts and
circumstances of the case, the appellants, on whom the burden
lay, have failed to do so. Although, the application for recall did
B allege some coercion, it could not be said to be a case of
established coercion. Three criminal complaints were filed, but
the appellants did not pursue the said criminal complaints to
their logical end.
32. It is a plain and basic rule of pleadings that in order to
C make out a case of fraud or coercion there must be a) an
express allegation of coercion or fraud and b) all the material
facts in support of such allegations must be laid out in full and
with a high degree of precision. In other words, if coercion or
fraud is alleged, it must be set out with full particulars. In
' D Bishundeo Narain v. Seogeni Rai reported in 1951 SCR 548
it was held thus:
"27. We turn next to the questions of undue influence and
coercion. Now it is to be observed that these have not
E been separately pleaded. It is true they may overlap in part
in some cases but they are separate and separable
categories in law and must be separately pleaded.
28. It is also to be observed that no proper particulars have
been furnished. Now if there is one rule which is better
F established than any other, it is that in cases of fraud,
undue influence and coercion, the parties pleading it must
set forth full particulars and the case can only be decided
on the particulars as laid. There can be no departure from
them in evidence. General allegations are insufficient even
G 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. See Order 6 Rule 4 of the Civil
Procedure Code."
H
SHANTI BUDHIYA VESTA PATEL v. NIRMALA 977
JAYPRAl:<ASH TIWARI [DR. MUKUNDAKAM SHARMA, J.]
33. In the present case, the appellants have, however, failed A
to furnish the full and precise particulars with regard to the
allege; fraud. Since the particulars in support of the allegation
of fraud or coercion have not been properly pleaded as required
by law, the same must fail. Rather the Affidavits-cum-
Declarations executed by the appellants indicate that no 8
coercion or fraud was exercised upon the appellants by
respondent no .. 8 or 9 at any point of time and thus the consent
decree cannot be said to be anything but valid.
34. In this regard, we wish to refer to the judgment of this C
Court in the case of Shankar Sitaram Sontakke v. Balkrishna
Sitaram Sontakke reported in AIR 1954 SC 352 wherein this
Court while dealing with the nature of a consent decree held in
para 9 as under:
"9. The obvious effect of this finding is that the plaintiff is D '
barred by the principle of res judicata from reagitating the
question in the present suit. It is well settled that a consent
decree is as binding upon the parties thereto as a decree
passed by invitum. The compromise having been found not
to be vitiated by fraud, misrepresentation, E
misunderstanding or mistake, the decree passed thereon
has the binding force of res judicata.
35. We may also refer to the decision of this Court in
Loonkaran v. State Bank, Jaipurreported in (1969} 1 SCR 122
where interpreting Section 202 of the Indian Contract Act, this F
Court held thus:
"Section 202 of the Contract Act provides that where the
agent has himself an interest in the property which forms
the subject matter of the agency, the agency cannot, in the G
absence of an express contract, be terminated to the
prejudice of such agent. It is settled law that where the
agency is created for valuable Qonsideration and authority
is given to effectuate a security or to secure interest of the
agent, the authority cannot be revoked." H
978 SUPREME COURT REPORTS [2010] 4 S.C.R.
A 36. The appellants also alleged that they had revoked the
Powers of Attorney executed by them in favour of the
respondent no. 9 by filing complaints with the police. We are
of the considered opinion that this contention of the appellants
is devoid of merit. Although there is no denying the fact that
B three police complaints had been filed on three different dates
with the Dolice against the alleged harassment and threats by
respondent nos. 8 and 9, it is difficult to understand how the
Powers of Attorney executed by the appellants or their
predecessor-in-interest stood revoked. The record of the case
C reveals that each of the complaints was filed by a separate
person - the first complaint was filed by the appellants
themselves, the second by an Advocate and the third by one
Narendra M. Patel, who is himself a builder. It is significant to
note that all these complaints came to be filed when said
Narender M. Patei came into the picture. Further, it is important
0
to take note of the fact that all the Powers of Attorney executed
in favour of respondent no. 9 as also all the deeds and
documents entered into between the predecessor-in-interest of
the appellants and respondent no. 9 were duly registered with
the office of the Sub-Registrar. Neither any document nor any
E of the Powers of Attorney was ever got cancelled by the
appellants.
37. The appellants also further contended before us that
they had revoked the Powers of Attorney executed in favour of
F respondent no 9 by executing a fresh Power of Attorney in
favour of said Narendra M. Patel. It is significant to note that
despite filing of the complaints with the police nothing was done
by the appellants to bnng the allegations contained in the said
complaints to the notice and knowledge of the High Court
G although that could have been comfortably done had the
appellants wished to do so. The Power of Attorney in favour of
said Narendra M Patel was executed by the appellants on
26.04.2006 whereas the first complaint was filed with the police
on 01.05.2006 and the consent terms were entered into on
H
SHANTI BUOHIYA VESTA PATEL v. NIRMALA 979
JAYPRAKASH TIWARI [DR. MUKUNDAKAM SHARMA, J.]
22.05.2006. The consent decree was actually passed by the A
High Court on 13.06.2006.
38. The appellants, thus, had ample time and opportunity
with them to bring the said allegations to the notice and
knowledge of the High Court at any time between 26.04.2006
8
and 13.06.2006. The appellants had considerable amount of
time available with them, As noted earlier, with regard to the
complaints filed, the appellants did not take any follow up action
to bring them their logical end.
39. It is crystal clear that the appellants chose not to avail C
an opportunity which was available to them. In such
circumstances, it will not be appropriate to say that the deeds
and documents as well as the Powers of Attorney executed in
favour of respondent no. 9 stood revoked merely by filing
complaints with the police. We cannot lose sight of the fact that D
a registered document has a lot of sanctity attached to it and
this sanctity cannot be allowed to be lost without following the
proper procedure.
40. In any event, if we direct our attention to the contents E
of the Power of Attorney executed by the appellants in favour
of said Narender M. Patel, we find that the stand taken by the
appellants throughout that they had, by executing a Power of
Attorney in favour of Narender M. Patel.. revoked the Powers
of Attorney executed in favour of respondent no. 9 to be
baseless. In fact, a look at the terms of the Power of Attorney F
executed in favour of Narender M. Patel would show to the
contrary. The relevant portion of the said Power of Attorney is
being extracted hereinbelow: -
"6. To correspond with all the body cooperate for otherwise G
including government and semi- government bodies and
Municipal Corporation of Greater Bombay and make
applications etc. in respect of any of the matters pertaining
to the said the property and the said premises.
H
980 SUPREME COURT REPORTS [2010) 4 S.C.R.
A AND FURTHER that these presents and the powers
hereby given shall in no wise extend or be deemed or
continued to extend to repeal, revoke, determine or make
void any other power or powers of attorney at any time
heretobefore or hereafter given or executed by us to or in
B favour of any other person or persons for the same or any
distinct or other purpose or purposes but such power or
powers shall remain and be of the-same authority, validity
and power, force and effect as if these presents had not
been made~
c (emphasis supplied)
41. Before we part with the discussion, we wish to make
note of the fact that respondent no. 9 has, in the counter-affidavit
filed in this Court, prayed for declaring the consent terms to be
D cancelled and annulled on the ground that the consent terms
have been rendered infructuous due to the failure of respondent
no. 8 to perform his obligations as per the consent terms. We
have a strong feeling that a money game is being played. Since
the stakes are high, each party before us is trying to draw the
E maximum advantage. To us, there seems to be no other reason
for respondent no. 9 having adopted such a course of action.
42. In view of the foregoing discussion, we are of the
considered view that entering into the compromise as also filing
of the same in. the High court of Bombay by respondent no. 9
F on behalf of the appellants was without any fraud and well within
the scope of his authority: Accordingly, we find no merit in the
present appeals and the same are hereby dismissed. There
will be no order as to costs.
D.G. Appeals dismis~ed
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