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SMT. BADAMI (DECEASED) BY HER L.R. versus BHALI

Citation: [2012] 6 S.C.R. 75 · Decided: 22-05-2012 · Supreme Court of India · Bench: B.S. CHAUHAN · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2012] 6 S.C.R. 75 
SMT. BADAMI (DECEASED) BY HER L.R. 
v. 
BHALI 
(Civil Appeal No. 1723 of 2008) 
MAY 22, 2012. 
[DR. B.S. CHAUHAN AND DIPAK MISRA, JJ.] 
SUIT: 
A 
B 
Fraudulent suit - Suits for permanent injunction and c 
possession - Based on an earlier compromise decree - Held: 
All facets of fraud get attracted to the case at hand - A rustic 
and illiterate woman is taken to court by a relation on the plea 
of creation of a lease deed and magically in a hurried manner 
the plaint is presented, written statement is drafted and filed, 
D 
statement is recorded and a decree is passed within three 
days - It not only gives rise to a doubt but indicates that there 
is some kind of foul play - However, the trial judge who 
decreed the first suit on 27. 11. 1973 did not look at these 
aspects as also the requirement of 0. 10, r.1, CPC - The 
E 
judgment is vitiated by fraud - When the subsequent suits 
were filed, the courts below routinely followed the principles 
relating to consent decree and did not dwell deep to find out 
how the fraud was manifestly writ large - The foundation was 
a family arrangement, which was not bona fide - No iota of F 
evidence has been brought on record that the plaintiff had 
given anything to the defendant in the arrangement - It is a 
matter of record that the possession was not taken over and 
inference has been drawn that possibly there was an implied 
agreement that the decree would be given effect to after her 
death - All these reasonings are absolutely non-plausible and G 
common sense does not even remotely give consent to them 
- The whole thing was buttressed on the edifice of fraud - The 
impugned judgments and decrees are set aside - As a natural 
corollary, the judgment and decree dated 27. 11. 1973 is also 
75 
H 
76 
SUPREME COURT REPORTS 
[2012] 6 S.C.R. 
A set aside - Code of Civil Procedure, 1908 - 0.10, r. 1 and 0. 
15, r. 1. 
DEEDS AND DOCUMENTS: 
Family arrangement -
Held.ยท Though, a family 
8 
arrangement need not be construed narrowly and it need not 
be registered, but it must prima facie appear to be genuine 
which is not so in the case at hand - That apart, there was no 
reason to exclude the daughter and the son-in-law - It is 
impossible to perceive any dispute over any property or the 
C possibility of it in future - On the contrary, in this so called 
family settlement the whole property of the defendant is given 
to the plaintiff - It cannot be accepted to be a bona fide 
settlement. 
o 
The plaintiff and the original defendant's late 
husband were the descendants of a common ancestor. 
In a prior arrangement, the said defendant got a share in 
the ancestral property. The plaintiff, on 24.11.1973 filed 
suit No. 1422 of 1973 stating that the defendant, under a 
E family settlement dated 1.6.1972 gave her whole share to 
the plaintiff and also handed over the possession thereof 
to him, but since the revenue entries continued to be in 
her name and there was interference with plaintiff's 
possession over the suit land, the suit for declaration and 
F permanent injunction was ,filed. On the date of 
presentation of the plaint itself, the written statement was 
filed admitting the plaint averment to be correct and 
praying for decree of the suit. The suit was decreed on 
27 .11.1973. It was the case of the plaintiff that the revenue 
entries continued to be in the name of the defendant and 
G she remained in possession of the suit property. He filed 
Civil Suit No. 401 of 1984 for permanent injunction against 
the defendant restraining her from alienating the suit land. 
He also filed Civil Suit No. 784 of 1984 for possession. 
The defendant contested both the suits but her stand that 
H the decree dated 27.11.1973 was obtained by fraud was 
BADAMI (DECEASED) BY HER L.R. v. BHALI 
77 
not accepted and the suits were decreed. Her appeals A 
were also dismissed. During the pendency of the second 
appeals filed by the original defendant, she died and the 
name of her daughter was substituted. The second 
appeals were also dismissed holding that the original 
defendant had failed to discharge the onus that the initial 
B 
decree dated 27.11.1973 was obtained by fraud. 
Aggrieved, the daughter of the original defendant filed the 
appeal. 
Allowing the appeal, the Court 
c 
HELD: 1.1. Rule 1 of 0. 10 of the Code of Civil 
Procedure, 1908 provides for ascertainment whether 
allegations in pleadings are admitted or denied. It 
stipulates that "at the first hearing" 

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