The leading case, Udit Narain Singh Malpaharia v. Addl. Member, Board of Revenue, Bihar, AIR 1963 SC 786, beholds the whole law on the topic.
Key Takeaways from this Decision, Udit Narain
Necessary Party
A necessary party is one without whom no order can be made effectively.
The parties whose rights are directly affected are the necessary parties.
A tribunal exercising a judicial or quasi-judicial act cannot decide against the rights of one person without giving him a hearing or an opportunity to present his case in the manner known to law.
If the provisions of a particular statute or rules made thereunder do not provide for it, principles of natural justice demand it.
Any order that may be issued behind the back of such a party can be ignored by the said party.
Any such order made without hearing the affected parties would be void.
Proper Party
A proper party is one whose presence is not necessary for making an effective order; but whose presence is necessary for a complete and final decision on the question involved in the proceeding, or whose presence may facilitate the settling of all the questions that may be involved in the controversy.
The question of making such a person as a party to a writ proceeding depends upon the judicial discretion of the High Court in the circumstances of each case.
Either one of the parties to the proceeding may apply for the impleading of such a party or such a party may suo motu approach the court for being impleaded therein.
Udit Narain Singh Malpaharia v. Addl. Member, Board of Revenue, Bihar
In Udit Narain Singh Malpaharia v. Addl. Member, Board of Revenue, Bihar AIR 1963 SC 786 our Apex Court held, in para 7 and 9, as under:
“7. To answer the question raised it would be convenient at the outset to ascertain who are necessary or proper parties in a proceeding. The law on the subject is well settled: it is enough if we state the principle. A necessary partyis one without whom no order can be made effectively’; a proper party is one in whose absence an effective order can be made but whose presence is necessary for a complete and final decision on the question involved in the proceeding.”
“A tribunal, therefore, exercising a judicial or quasi-judicial act cannot decide against the rights of one party without giving him a hearing or an opportunity to represent his case in the manner known to law. If the provisions of a particular statute or rules made thereunder do not provide for it, principles of natural justice demand it. Any such order made without hearing the affected parties would be void.
9. The next question is whether the parties whose rights are directly affected are the necessary parties to a writ petition to quash the order of a tribunal. As we have seen, a tribunal or authority performs a judicial or quasi- judicial act after hearing parties. Its order affects the right or rights of one or the other of the parties before it. In a writ of certiorari, the defeated party seeks for the quashing of the order issued by the tribunal in favour of the successful party. How can the High Court vacate the said order without the successful party being before it? Without the presence of the successful party the High Court cannot issue a substantial order affecting his right. Any order that may be issued behind the back of such a party can be ignored by I the said party, with the result that the tribunal’s order would be quashed but the right vested in that party by the wrong order of the tribunal would continue to be effective. Such a party, therefore, is a necessary party and a petition filed for the issue of a writ of certiorari without making him a party or without impleading him subsequently, if allowed by the court, would certainly be incompetent. A party whose interests are directly affected is, therefore, a necessary party. In addition, there may be parties who may be described as proper parties, that is parties whose presence is not necessary for making an effective order but whose presence may facilitate the settling of all the questions that may be involved in the controversy. The question of making such a person as a party to a writ proceeding depends upon the judicial discretion of the High Court in the circumstances of each case. Either one of the parties to the proceeding may apply for the impleading of such a party or such a party may suo motu approach the court for being impleaded therein.”
Following are the recent Supreme Court Judgments that followed Udit Narain Singh
(1) Vishal Ashok Thorat v. Rajesh Shrirambapu Fate, 2019 AIR SC 3616
(2) Swapna Mohanty v. State of Odisha, 2018 17 SCC 621
(3) Kanaklata Das v. Naba Kumar Das, 2018 AIR SC 682
(4) Poonam v. State of U. P. , 2016 2 SCC 779
(5) Asstt. G.M State Bank of India v. Radhey Shyam Pandey, 2015 (3) SCALE 39
(6) Sh Jogendrasinhji Vijaysinghji VS State of Gujarat, 2015 AIR SC 3623
(7) Census Commissioner v. R. Krishnamurthy, 2015 2 SCC 796
(8) H. C. Kulwant Singh v. H. C. Daya Ram, 2014 AIR SC 3083,
(9) Ranjan Kumar v. State Of Bihar, 2014 16 SCC 187
(10) State of Rajasthan v. Ucchab Lal Chhanwal, (2014) 1 SCC 144
(11) Manohar v . State of Maharashtra, 13 Dec 2012
(12) Vijay Kumar Kaul v. Union of India, (2012) 7 SCC 610
(13) Delhi Development Authority v. Bhola Nath Sharma, AIR 2011 SC 428
(14) State of Assam v. Union of India, 30 Sep 2010
(15) Competition Commission of India v. Steel Authority of India Ltd. , (2010) 10 SCC 744
(16) Public Service Commission v. Mamta Bisht, (2010) 12 SCC 204
(17) JS Yadav v. State of UP (2011) 6 SCC 570
(18) T. Vijendradas v. M. Subramanian , 09 Oct 2007
(19) Avtar Singh Hit v. Delhi Sikh Gurdwara Mangt. Comte., (2006) 8 SCC 487
(20) Assam Small Scale Ind. Dev. Corp. v. J. D. Pharmaceuticals, 2005 (13) SCC 19
Non-joinder of a Party – Relevant Provision of CPC
Section 99 of the CPC reads as under:
99. No decree to be reversed or modified for error or irregularity not affecting merits or jurisdiction: No decree shall be reversed or substantially varied, nor shall any case be remanded in appeal on account of any misjoinder or non-joinder of parties or causes of action or any error, defect or irregularity in any proceedings in the suit, not affecting the merits of the case or the jurisdiction of the Court.
Provided that nothing in this section shall apply to non-joinder of a necessary party.
Rule 9 of Order I CPC reads as under:
9. Misjoinder and nonjoinder: No suit shall be defeated by reason of the misjoinder or nonjoinder of parties, and the Court may in every suit deal with the matter in controversy so far as regards the rights and interests of the parties actually before it: Provided that nothing in this rule shall apply to nonjoinder of a necessary party.
Non-joinder or misjoinder of Parties – Objection
13. Objections as to non-joinder or misjoinder. All objections on the ground of non-joinder or misjoinder of parties shall be taken at the earliest possible opportunity and, in all cases where issues are settled, at or before such settlement, unless the ground of objection has subsequently arisen, and any such objection not so taken shall be deemed to have been waived.
Necessary Party – for Effectually and Completely settle the questions
In Razia Begum vs. Anwar Begum, AIR 1958 SC 886, our Apex Court observed as under:
“The only reason which makes it necessary to make a person a party to an action is so that he should be bound by the result of the action and the question to be settled, therefore, must be a question in the action which cannot be effectually and completely settled unless he is a party. The line has been drawn on a wider construction of the rule between the direct interest or the legal interest and commercial interest. It is, therefore, necessary that the person must be directly or legally interested in the action in the answer, i.e., he can say that the litigation may lead to a result which will affect him legally that is by curtailing his legal rights.”Quoted in: Poonam VS State of UP, 2016-2 SCC 779
Easement – owners of properties who obstruct alone are necessary parties
If easement right is claimed over a way that passes through various (servient) properties, the owners of properties who obstruct the way alone are necessary parties; and those who do not raise any obstruction are not necessary parties.
Madan Mohan Chakravarthy v. Sashi Bhusan, AIR 1915 Cal 403 (19 Cal WN 1211);
Lal Mohammad Biswas v. Emajuddin Biswas, AIR 1964 Cal 548;
Varkey Joseph v. Mathai Kuriakose, (1992) 2 Ker LJ 135; (1992) 2 Ker LT 169.
Owners Of Other Servient FieldsAre Not Necessary Parties
In K.Palaniappa Moopan v. Angammal, (1967) I M.L.J. 177, it was held as under:
“It may be that the owners of other fields over which the channel flows are proper parties, but certainly they are not necessary parties. Their non- joinder cannot be fatal to the suit. There are several servient tenements over which the channel passes, but the defendants alone have obstructed according to the plaintiffs. There has been no obstruction from the State or from the owner of field S.No.15 of the exercise of the right claimed by the plaintiffs. I am unable to appreciate the contention that the plaintiffs cannot have effectual relief in their absence. If any of them should interfere with the mamool flow of water or at any subsequent period, that would give a fresh cause of action to the plaintiffs and a cause of action to the defendants also if they are inconvenienced and injured. In my view, it would be unreasonable to compel the plaintiffs to implead the owners of the servient lands all along the course of the channel whether they had any cause of action against them or not and even though there was no obstruction to or denial of the plaintiffs right by these persons. “
All persons interested in Easement are not Necessary Parties
In S. Narain Bera v. Chandra Bera, AIR 1924 Cal. 1050, the Division Bench of Calcutta High Court observed that all persons interested in the right of easement are not necessary parties to the suit where the cause of action on the pleadings is against those persons only who are alleged to have interfered with the plaintiffs right. The persons who have the right of easement cannot be held to be necessary parties so long as their right is not interfered with. In order to determine whether a suit is maintainable and whether certain parties are necessary parties or not, it is necessary to ascertain the nature of the plaintiffs case as set out in the plaint. . (Referred to in : Durvasula Dakshina Murthy v. Vajjala Vijaya Kumari, 2008 1 AndLD 347)
In Mukherjj v. Kalipada Bhattacharji, A. I. R. 1936 Cal. 534, it was held that every owner of servient tenement denying the plaintiffs right and every person obstructing the use of the right were necessary parties. (Referred to in: Ram Singh Sharma v. Parmod Kumari, 1992-102 PujLR 396)
Not Necessary To Add Who Are Not Parties To Obstruction
Justice B.K.Mukherjea in Kedaruddin Ahamad v. Sm. Samsur Mata, (41 Cal.WN 769) took the view that it was not necessary to add as defendants those persons who are not parties to the act of obstruction complained of.
In Varkey Joseph v. Mathai Kuriakose, 1992-2 KerLJ 135; 1992-2 KerLT 169, it is held as under:
“The said decision (Kedaruddin Ahamad v. Sm. Samsur Mata) also took note of the decision reported in Surja Narain V. Chandra Bera (AIR 1924 Cal.1050) to hold that the absence of other servient owner is in no way fatal to the plaintiffs suit complaining of obstruction by a servient land owner. These authorities were considered elaborately by his Lordship P.B. Mukharji, J. in the decision reported in Lal Mohd. v. Emajuddin (AIR 1964 Cal.548). After noticing the conflict of authorities the learned judge preferred to follow the view expressed in the decision reported in 19 Cal.WN 1211 which was affirmed by a Division Bench of which Chief Justice Jenkins himself was a party and that of B.K. Mukherjea, J. in the decisions reported in 41 Cal WN. 769. His Lordship Justice P.B. Mukharji observed:
“The actual complaint in this case against the defendants is that they put two obstructions at two places on the road over which a right of way was claimed by the plaintiffs. The real nature of the suit is for removal of those obstructions. The persons who obstruct in my judgment are the only proper and necessary persons to be joined as defendants in such a suit, Hundred and thousand of villagers who have done nothing to obstruct such a way are neither necessary nor proper parties.
If that were so then a single obstruction by a single villager will make it necessary to make the whole village,. i.e., all the villagers, parties. In that view a person who suffers has to join all other numerous persons as defendants although they have done nothing and there is no cause of action or grievance against them. I do not think that is the law….”
Read in the light of 0.1 R.9 of the Code of Civil Procedure and the practical considerations put forward by Mr. Justice P.B. Mukharji I respectfully agree with the view taken by Mr. Justice P.B. Mukharji in the decision reported in AIR 1964 Cal.548.”
Owner of the Servient Tenement – Not Necessarily a Party
In Varkey Joseph v. Mathai Kuriakose, 1992-2 KerLJ 135; 1992 2 KerLT 169, it is observed as under:
In Thayappan v. Kunhahammed (S.A, No.629 of 1986) considered this question in the light of the decision reported in AIR 1964 Cal. 548 and the decision of the Hon’ble Supreme Court reported in Udti Narain Singh Malpharia v. Additional Member, Board of Revenue, Bihar (1963(1) SCR 676) and has held as follows:
“…The learned counsel for the appellant raised a contention that the suit is bad for non joinder of necessary parties, as the owner of the servient tenement is not made a party to the suit and therefore it is contended that no effective decree for declaration could be passed in this case and the lower appellate court erred in reversing the findings of the trial court. The respondent’s counsel contended that the owner of the servient tenement is not a necessary party and it is pointed out that the appellant has not raised this contention in the written statement. Who is a ‘necessary party’ has been explained by the Supreme Court in Udit Narain Singh Malpaharia v. Additional Member, Board of Revenue, Bihar (1963-1 SCR 676) wherein it was held,
“Necessary party is one without whom no order can be made effectively; a proper party is one in whose absence an effective order can be made but whose presence is necessary for a complete and final decision on the question involved in the proceeding”.
It is true that if the owner of the servient tenement is a necessary party and whose presence is necessary for passing an effective decree, he is to be impleaded as a party and the non-joinder of such a party may entail the dismissal of the case. I do not think that the owner of the servient tenement is a necessary party in all cases where a declaration of easement right is claimed by the plaintiff. In the present case the real dispute is between the plaintiff and the defendant. Defendant is the owner of an adjacent property and according to the plaintiff he is causing obstruction to the pathway. The plaintiff has no case that the owner of the servient tenement caused any obstruction to the use of the pathway. Even if the court passed a declaration of his easement right in respect of the plaint schedule pathway it would bind only the defendant, who allegedly caused the obstruction. Therefore, the owner of the servient tenement is not a necessary party in all suits for declaration of easement right. An effective decree can be passed even without impleading the owner of the servient tenement as a party to the suit,…”
Necessary Party – Person Likely to Suffer has to be Impleaded
In Census Commissioner v. R. Krishnamurthy, 2015-2 SCC 796, it is observed as under:
19. As we evince from the sequence of events, the High Court in the earlier judgment had issued the direction relating to carrying of census in a particular manner by adding certain facets though the lis was absolutely different. The appellant, the real aggrieved party, was not arrayed as a party-respondent. The issue was squarely raised in the subsequent writ petition where the Census Commissioner was a party and the earlier order was repeated. There can be no shadow of doubt that earlier order is not binding on the appellant as he was not a party to the said lis. This view of ours gets fructified by the decision in
H.C. Kulwant Singh v. H.C. Daya Ram JT 2014 (8) SC 305 wherein this Court,
after referring to the judgments in
Khetrabasi Biswal v. Ajaya Kumar Baral, (2004) 1 SCC 317
UditNarain Singh Malpaharia v. Board of Revenue, AIR 1963 SC 786
Prabodh Verma v. State of U.P. (1984) 4 SCC 251 and
Tridip Kumar Dingal v. State of W.B. (2009) 1 SCC 768
has ruled thus:
‘….. if a person who is likely to suffer from the order of the court and has not been impleaded as a party has a right to ignore the said order as it has been passed in violation of the principles of natural justice’.”
Necessary parties in suit on Partial destruction of Stair Case and its Removal
Smt. Subhra Sinha Roy v. Iman Kalyan Dey, (2011) 2 CalHN 959, considered it and stated as under:
“In CWN (19) 1211 (Sir Lawrence Jenkins, C.J., Justice D. Chatterjee Madan Mohan Chakravarty v. Sashi Bhusan Mukherji, (1915) 31 Ind. Cas. 549 : 19 C.W.N. 1211) it is held, inter alia, that a dominant owner has no cause of action against servant owners who have neither caused obstruction nor raised any objection to the exercise of his right of easement. In a suit for declaration of his right of way he is not bound to make parties any servant owners other than those who have so obstructed or challenged his right. The said case relates to a suit for declaration of right of way, for restoration of the path to its former condition and for perpetual injunction. The said suit was decreed against which appeal was preferred with the contention that the suit ought to have failed as the owners of all the servant tenements over which the way is claimed have not been made parties to the suit. The instant case relates to removal of partial obstruction from the existing pathway in terms of a compromise decree which has been waived or relinquished. There is no denial of the fact that the said staircase is now in occupation of the tenants inducted by co-sharers. If such a staircase is to be removed affecting the rights of all the co-owners, they must be treated as necessary party and in such case in absence of all the co-owners no effective decree can be passed. From this point of view the learned Trial Court as well as the Hon”ble Division Bench has not committed any error apparent on the face of record which may be reviewed and the ratio in the aforesaid case is not applicable in the facts and circumstances of the case.”
Claim of possessory right over Govt. land: State need not be a party
In Vavvakkavu Muslim Thaikkavupally v. Narayanan Purushan, ILR 1992-1 Ker 221; 1991-2 KLJ 526; 1991-2 KLT 477, it was held as under:
“Regarding the first question it is clear from the pleadings and evidence in the case that the plaintiffs have not claimed either possession of the plaint B schedule property or even an easement right over it as against the State. The gist of their claim in the plaint is that as the owners of the property abutting plaint B schedule property they are using the same as a passage to have access from their residential house in plaint B schedule property to N.H. 47. Of course they have also stated that they have no other pathway to have access to any public road. However, they have not even alleged and proved any of the ingredients to establish an easement right of way through the plaint B schedule property. Learned counsel for the respondents has also not advanced any such contention before me. Probably being land kept for the purpose of N.H. 47 State has also not chosen to obstruct the plaintiffs in the matter of using plaint B schedule property as a passage so far. In these circumstances, I do not think that it was necessary for the plaintiffs to have impleaded the State as a party to the suit. In a more or less similar case, a Division Bench of the Orissa High Court in the decision reported in Girish Chandra v. Nagendranath (AIR 1978 Orissa 211) has held that the owner of land is not a necessary party to the suit so long as none of the parties to the suit have claimed any right specifically against the owner. In the said decision, the Division Bench has actually referred to two earlier decisions of the Calcutta High Court reported in Sabirer Ma v. Behari Mohan Lai (AIR 1928 Cal. 23) and in Kedaruddin v. Asrafali (AIR 1937 Cal. 355) in support of their view. In AchutKalsai v. MadhuKalsai (1972) 38 Cut.LT 105) the Orissa High Court in a more or less similar case has held thus:
“In this case there is no allegation of any resistance from the State of Orissa to the flow of Avatar over the Government land intervening between the plaintiffs premises and the channel by the side of the village road. The entire obstruction came from the defendants and the plaintiffs really aggrieved by the defendants action. There may be cases where the owner of the servant tenement would not resist and the resistance would come from quite a different quarter. In such cases the Owner of the servant tenement would certainly not be required to be before the Court as a necessary party to the litigation. The present case seems to be one of that type and the State of Orissa which is the owner of the intervening plot not being before the Court would not affect the suit in any manner”.
I am in agreement with the view expressed in the above decisions and would hold that the State is not a necessary party to the suit and the suit is not liable to be dismissed on that ground.”
Admission is discussed, in Sections 17 to 21 of the Evidence Act. The general and important propositions on admission are the following:
An unambiguous and straightforward admission is the best evidence in a case.
An admission is not conclusive.
It can be explained as provided under Sec. 31 of the Evidence Act.
In many cases it may be conclusive; in some cases, it may shift the burden of proof.
Sec. 31 of the Evidence Act – Admissions are not conclusive proof, but may estop
Sec. 31 of the Evidence Act lays down that admissions are not conclusive proof, but may estop. It reads as under:
“31. Admissions not conclusive proof, but may estop – Admissions are not conclusive proof of the matters admitted, but they may operate as estoppels under the provisions hereinafter contained.”
Facts Admitted need not be Proved
Order VIII Rule 5 of the CPC lays down that a fact not specifically denied in written statement shall be taken to be admitted.
In Badat and Co. v. East India Trading Co., 1963 SCC OnLine SC 9, it is held that evasive denial in pleadings is tantamount to an admission, which obviates the need for further proof.
Admission isSubstantive Evidence
In Thiru John v. Returning Officer, AIR 1977 SC 1724, the Supreme Court held that it is well settled that a party’s admission is substantive evidence – proprio vigore.
But at the same time the Court, in its discretion, may require such fact to be proved and established.
Judgment on Admissions: Order XII Rule 6
Order XII Rule 6 of the Code of Civil Procedure 1908 reads as under:
“6. Judgment on admissions – (1) Where admissions of fact have been made either in the pleading or otherwise; whether orally or in writing, the Court may at any stage of the suit, either on the application of any party or of its own motion and without waiting for the determination of any other question-between the parties, make such order or give such judgment as it may think fit, having regard to such admissions.
(2) Whenever a judgment is pronounced under sub-rule (1) a decree shall be drawn up in accordance with the judgment and the decree shall bear the date on which the judgment was pronounced.”
In Karam Kapahi v. Lal Chand Public Charitable Trust, (2010) 4 SCC 753, after considering Uttam Singh Duggal & Co. Ltd. v. United Bank of India, (2000) 7 SCC 120, the Supreme Court pointed out that Order 12 Rule 6 of CPC is not limited to admissions contained in pleadings. The Supreme Court held in Karam Kapahi as follows:
“40. If the provision of Order 12 Rule 1 is compared with Order 12 Rule 6, it becomes clear that the provision of Order 12 Rule 6 is wider inasmuch as the provision of Order 12 Rule 1 is limited to admission by “pleading or otherwise in writing” but in Order 12 Rule 6 the expression “or otherwise” is much wider in view of the words used therein, namely: “admission of fact … either in the pleading or otherwise, whether orally or in writing”.
41. Keeping the width of this provision (i.e. Order 12 Rule 6) in mind this Court held that under this Rule admissions can be inferred from the facts and circumstances of the case (see Charanjit Lal Mehra v. Kamal Saroj Mahajan [(2005) 11 SCC 279] , SCC at p. 285, para 8). Admissions in answer to interrogatories are also covered under this Rule (see Mullas’s Commentary on the Code, 16th Edn., Vol. II, p. 2177).
xxx xxx xxx
47. Therefore, in the instant case even though statement made by the Club in its petition under Section 114 of the Transfer of Property Act does not come within the definition of the word “pleading” under Order 6 Rule 1 of the Code, but in Order 12 Rule 6 of the Code, the word “pleading” has been suffixed by the expression “or otherwise”. Therefore, a wider interpretation of the word “pleading” is warranted in understanding the implication of this Rule. Thus the stand of the Emphasis supplied.
Club in its petition under Section 114 of the Transfer of Property Act can be considered by the Court in pronouncing the judgment on admission under Order 12 Rule 6 in view of clear words “pleading or otherwise” used therein especially when that petition was in the suit filed by the Trust.” (Quoted in: Rattan India Power Ltd. vs Bharat Heavy Electricals Ltd. (Delhi) 6 March, 2025).
Judicial Admissions & Order XII of CPC Rule 1 to 6.
“1. Notice of admission of case. – Any party to a suit may give notice, by his pleading, or otherwise in writing, that he admits the truth of the whole or any part of the case of any other party.
2. Notice to admit documents. – Either party may call upon the other party [to admit, within 7 [seven] days from the date of service of the notice any document,] saving all exceptions; and in case of refusal or neglect to admit, after such notice, the costs of proving any such document shall be paid by the party so neglecting or refusing, whatever the result of the suit may be, unless the Court otherwise directs; and no costs of proving any document shall be allowed unless such notice is given, except where the omission to give the notice is, in the opinion of the Court, a saving of expense.
2A. Document to be deemed to be admitted if not denied after service of notice to admit documents. (1) Every document which a party is called upon to admit, if not denied specifically or by necessary implication, or stated to be not admitted in the pleading of that party or in his reply to the notice to admit documents, shall be deemed to be admitted except as against a person under a disability: Provided that the Court may, in its discretion and for reasons to be recorded, require any document so admitted to be proved otherwise than by such admission. (2) Where a party unreasonably neglects or refuses to admit a document after the service on him of the notice to admit documents, the Court may direct him to pay costs to the other party by way of compensation.]
3. Form of notice – A notice to admit documents shall be in Form No. 9 in Appendix C, with such variations as circumstances may require.
3A. Power of Court to record admission. Notwithstanding that no notice to admit documents has been given under rule 2, the Court may, at any stage of the proceeding before it, of its own motion, call upon any party to admit any document and shall, in such a case, record whether the party admits or refuses or neglects to admit such document.]
4. Notice to admit acts. – Any party may, by notice in writing, at any time not later than nine days before the day fixed for the hearing, call on any other party to admit, for the purposes of the suit only, any specific fact or facts, mentioned in such notice. And in case of refusal or neglect to admit the same within six days after service of such notice, or within such further time as may be allowed by the Court, the costs of proving such fact or facts shall be paid by the party so neglecting or refusing, whatever the result of the suit may be, unless the Court otherwise directs: Provided that any admission made in pursuance of such notice is to be deemed to be made only for the purposes of the particular suit, and not as an admission to be used against the party on any other occasion or in favour of any person other than the party giving the notice.
5. Form of admissions. – A notice to admit facts shall be in Form No. 10 in Appendix C, and admissions of facts shall be in Form No. 11 in Appendix C, with such variations as circumstances may require.
6. Judgment on admissions. – (1) Where admissions of fact have been made either in the pleading or otherwise, whether orally or in writing, the Court may at any stage of the suit, either on the application of any party or of its own motion and without waiting for the determination of any other question between the parties, make such order or give such judgment as it may think fit, having regard to such admissions. (2) Whenever a judgment is pronounced under sub-rule (1) a decree shall be drawn up in accordance with the judgment and the decree shall bear the date on which the judgment was pronounced”
Judicial Admissions,Stand on a Higher Footing
Admissions in pleadings are judicial admissions. They stand on a higher footing than evidentiary admissions.
They may give rise to ‘Foundation of Rights’.
They are fully binding on the party that makes them and constitute a waiver of proofs.
Evidentiary admissions are not conclusive by themselves and they can be shown to be wrong.
Admissions in pleadings or judicial admissions
In Nagindas Ramdas v. Dalpatram Iccharam, AIR 1974 SC 471, it was held by the Supreme Court as under:
“26. Admissions if true and clear are by far the best proof of the facts admitted. Admissions in pleadings or judicial admissions admissible under Section 58 of the Evidence Act, made by the parties or their agents at or before the hearing of the case, stand on a higher footing than evidentiary admission. The former class of admissions are fully binding on the party that makes them and constitute a waiver of proof. They by themselves can be made the foundation of the rights of the parties. On the other hand evidentiary admissions which are receivable at the rival as evidence are by themselves not conclusive. They can be shown to be wrong.” (Quoted in: Sangramsinh P. Gaekwad v. Shantadevi P. Gaekwad: AIR 2005 SC 809, 2005 (11) SCC 314.)
A party will not be permitted to resile from admission
at subsequent stage
in the subsequent proceedings
In State of Haryana v. M.P. Mohla, 2007 (1) SCC 457 (SB Sinha), it is held as under:
“25. The law as regards the effect of an admission is also no longer res integra. Whereas a party may not be permitted to resile from his admission at a subsequent stage of the same proceedings, it is also trite that an admission made contrary to law shall not be binding on the State.
26. Reliance has been placed on Sangaramsinh P. Gaekwad vs. Shantadevi P. Gaekwad, 2005 (11) SCC 314 wherein the court was considering the effect of an admission made in the pleadings which was binding on the party proprio vigore in the subsequent proceedings.”
In Ranganayakamma v. K. S. Prakash, 2008-15 SCC 673 (SB Sinha), it is held as under:
“The pleadings of the appellants in the said suit in which they were parties are binding on them in thesubsequent proceedingsproprio vigore.”
See also:
Biswanath Prasad v. Dwarka Prasad, AIR 1974 SC 117,
Steel Authority of India Ltd v. Union of India, AIR 2006 SC 3229, 2006 (12) SCC 233,
Union of India v. Pramod Gupta, (2005) 12 SCC 1.
In Modi Spinning and Weaving Mills Co. Ltd. v. Ladha Ram & Co., (1976) 4 SCC 320 it was held as under:
“10. It is true that inconsistent pleas can be made in pleadings but the effect of substitution of paras 25 and 26 is not making inconsistent and alternative pleadings but it is seeking to displace the plaintiff completely from the admissions made by the defendants in the written statement. If such amendments are allowed the plaintiff will be irretrievably prejudiced by being denied the opportunity of extracting the admission from the defendants. The High Court rightly rejected the application for amendment and agreed with the trial court.”
In Gautam Sarup v. Leela Jetly and others, (2008) 7 SCC 85, it was held as under::
“28. What, therefore, emerges from the discussions made hereinbefore is that a categorical admission cannot be resiled from but, in a given case, it may be explained or clarified. Offering explanation in regard to an admission or explaining away the same, however, would depend upon the nature and character thereof. It may be that a defendant is entitled to take an alternative plea. Such alternative pleas, however, cannot be mutually destructive of each other.”
Burden on party who made Admission to show that it was Erroneous.
In Nizar v. Raseena, 2018-5 Ker HC 356; 2018-4 KerLT 870, it is held as under:
“An admission by a party in a previous suit or proceedings is admissible in evidence in a subsequent suit or proceedings. What a party himself admits to be true may reasonably be presumed to be so. The burden is upon the party who has made the admission to show that it was wrong or erroneous. Admission is only a piece of evidence to prove a fact. It does not operate as estoppel unless the other party has acted upon it.”
Admission in pleadings cannot be Permitted to be withdrawn by Amendment
Our Apex court, in Ram Niranjan Kajaria v. Sheo Prakash Kajaria, (2015) 10 SCC 203, held – by amendment of pleadings, admission made in the pleadings cannot be permitted to be withdrawn. It reads (para 22 and 23) as under:
“22. Delay in itself may not be crucial on an application for amendment in a written statement, be it for introduction of a new fact or for explanation or clarification of an admission or for taking an alternate position. It is seen that the issues have been framed in the case before us, only in 2009. The nature and character of the amendment and the other circumstances as in the instant case which we have referred to above, are relevant while considering the delay and its consequence on the application for amendment. But a party cannot be permitted to wholly withdraw the admission in the pleadings, as held by this Court in nagindas Ramdas vs. Dalpatram Ichharam. To quote para 27: (SCC pp. 251-52)
“27. From a conspectus of the cases cited at the Bar, the principle that emerges is, that if at the time of the passing of the decree, there was some material before the Court, on the basis of which, the Court could be prima facie satisfied, about the existence of a statutory ground for eviction, it will be presumed that the Court was so satisfied and the decree for eviction though apparently passed on the basis of a compromise, would be valid. Such material may take the shape either of evidence recorded or produced in the case, or, it may partly or wholly be in the shape of an express or implied admission made in the compromise agreement, itself. Admissions, if true and clear, are by far the best proof of the facts admitted. admissions in pleadings or judicial admissions, admissible under Section 58 of the Evidence Act, made by the parties or their agents at or before the hearing of the case, stand on a higher footing than evidentiary admissions. The former class of admissions are fully binding on the party that makes them and constitute a waiver of proof. They by themselves can be made the foundation of the rights of the parties. On the other hand, evidentiary admissions which are receivable at the trial as evidence, are by themselves, not conclusive. They can be shown to be wrong.”
23. We agree with the position in Nagindas Ramdas and as endorsed in Gautam Sarup that a categorical admission made in the pleadings cannot be permitted to be withdrawn by way of an amendment. To that extent, the proposition of law that even an admission can be withdrawn, as held in Panchdeo Narain Srivastava (Panchdeo Narain Srivastava v. Km. Jyoti Sahay, (1984) Supp. SCC 594 ), does not reflect the correct legal position and it is overruled.”
Admission on Contents of (Inadmissible) Document in Pleadings
In Perumal Chettiar v. Kamakshi Ammal, AIR 1938 Mad 785; (1938) 2 MLJ 189, it is observed, as to pleadings, as under:
“The result, in India, is that if by reason of the document being unstamped, no evidence of its contents whether primary or secondary is admissible, evidence of admissions by the defendant is equally inadmissible. The position may be different where admissions are made in the pleadings themselves (cf. Huddleston v, Briscoe (1805) 11 Ves. 583 (596) : 32 E.R. 1215 (1220) and Thynne v. Protheroe (1814) 2 M. & S. 553 : 105 E.R. 488), because by reason of Section 58 of the Evidence Act, it may not be necessary to prove admitted facts and the objection under Section 91 will not arise unless the plaintiff is called upon to go into evidence. (Mallappa v. Mat an Naga Chetty (1918) 35 M.L.J. 555 : I.L.R. 42 Mad. 41 (F.B.))
This was the position in Pramatha Nath Sandal v. Dwarka Nath Dey (1896) I.L.R. 23 Cal. 851; cf. however Chenbasappa v. Lakshman Ramchandra (1893) I.L.R. 18 Bom. 369, where it was suggested that in a suit on an unstamped promissory note, even an admission in the written statement may not avail the plaintiff, as the Court when giving a decree on such admission may be “acting on” the document within the meaning of Section 35 of the Stamp Act; see also Ankur Chunder Roy Chowdhry v. Madhub Chunder Gkose (1873) 21 W.R. 1.”
Admission is a Mode of Proof; ‘Facts Admitted Need Not be Proved’
Usually, a document is proved through its author, or through a witness or a person acquainted with handwriting. Concession or admission by the opposite side is an acceptable form of proving documents in evidence (under Sec. 17, 21, 58, 59 Evidence Act). ‘Truth of the contents’ of documents can also be established by concession or admission from the other side (“at the hearing”). Sec. 58, Evidence Act reads as under:
“58. Facts admitted need not be proved: No fact need be proved in any proceeding which the parties thereto or their agents agree to admit at the hearing, or which, before the hearing, they agree to admit by any writing under their hands, or which by any rule or pleading in force at the time they are deemed to have admitted by their pleadings:
Provided that the Court may, in its discretion, require the facts admitted to be proved otherwise than by such admissions.”
Sec. 58 says that no fact need be proved in any proceeding in three circumstances:
the parties or their agents agree to admit at the hearing
before the hearing, they agree to admit by any writing under their hands
by any rule of pleading they are deemed to have admitted by their pleadings.
Admissions are Substantive Evidence by themselves
In Bharat Singh v. Bhagirathi, AIR 1966 SC 405: [1966] 1 SCR 606, it was observed as under:
“Admissions are substantive evidence by themselves, in view of ss. 17 and 21 of the Indian Evidence Act, though they are not conclusive proof of the matters admitted. We are of opinion that the admissions duly proved are admissible evidence irrespective of whether the party making them appeared in the witness box or not and whether that party when appeared as witness was confronted with those statements in case it made a statement contrary to those admissions. The purpose of contradicting the witness under s. 145 of the Evidence Act is very much different from the purpose of proving the admission. Admission is substantive evidence of the fact admitted while a previous statement used to contradict a witness does not become substantive evidence and merely serves the purpose of throwing doubt on the veracity of the witness. What weight is to be attached to an admission made by a party is a matter different from its use as admissible evidence.”
Bharat Singh v. Bhagirathi is Quoted/referred to in:
Dipakbhai Jagdishchandra Patel v. State Of Gujarat, AIR 2019 SC 3363; 2019-16 SCC 547.
Union Of India v. Moksh Builders And Financiers Ltd., 1977 AIR SC 409; 1977-1 SCC 60.
Bishwanath Prasad v. Dwarka Prasad AIR 1974 SC 117, 1974-1 SCC 78
Priya Bala Ghosh v. Suresh Chandra Ghosh, AIR 1971 SC 1153; 1971-1 SCC 864.
“Hearing” Partakes ‘recording evidence’
Legal implication of the term ‘hearing’ is clear from Rule 2 (1) of Order XVIII (Hearing of the suit and examination of witnesses) of the CPC – that is, hearing partakes ‘recording evidence’. Rule 2 (1) reads as under:
“2. Statement and production of evidence – (1) On the day fixed for the hearing of the suit or on any other day to which the hearing is adjourned, the party having the right to begin shall state his case and produce his evidence in support of the issues which he is bound to prove.”
Recitals in a Judgment – no evidence of Admission made by a Witness
In Ishar Dass v. Arjan Singh, 1966 CurLJ 537 (P&H), it is observed as under:
“It is not denied that the appellant sought to prove the previous admission from a recital in the judgment delivered by the learned Subordinate Judge, 1st Class on 23rd February, 1962 copy Exhibit D.3. It is equally clear that recitals in a judgment are no evidence to prove the exact admission made by a party or a witness unless whole of the statement is recited therein. In this connection reference may be made to the cases, Sardar Bahadur Sardar Indra Singh v. Commissioner of Income Tax Bihar and Orissa, A.I.R. 1943 Patna 169, and Saradamba v. Pattabhiramayya, A.I.R. 1931 Madras 207.”
Modes of Proof of Documents
Modes of Proof of Documents (as to, both, ‘formal proof’ and ‘truth of the contents’) include the following:
Admission of the person who wrote or signed the document (Sec. 17, 21, 58, 67, 70).
Evidence of a person in whose presence the document was signed or written – ocular evidence (Sec. 59).
An attesting witness (Sec. 59).
Opinion of a person who is acquainted with the writing of the person who signed or wrote (Sec. 47).
Admission made by the person who signed or wrote the document made in judicial proceedings (Sec. 32, 33).
Evidence of a handwriting expert-opinion evidence/scientific evidence (Sec.45).
Evidence of a person who in routine has been receiving the document; or a document signed by such a person in the ordinary course of his business or official duty, though he may have never seen the author signing the document (Sec. 32, 34, 35 or 114).
Invoking (specific) presumptions under Sec. 79 to 90A.
Presumptions (general) under Sec. 114.
Circumstantial evidence: on probability or inferences (Sec. 114).
Court-comparison (Sec. 73).
Facts judicially noticeable (Sec. 56 and 57).
A fact of common-knowledge. (It does not require proof. See: Union Of India v. Virendra Bharti: 2011-2 ACC 886, 2010 ACJ 2353; Rakhal Chakraborty v. Sanjib Kumar Roy: 1998-1 GauLR 253, 1997-2 GauLT 705)
Internal evidence afforded by the contents of the document; a link in a chain of correspondence; recipient of the document. (Mobarik Ali Ahmed v. State of Bombay, AIR 1957 SC 857)
Truth of Contents of Document Invoking ADMISSION
Truth of the contents of a document, can be established
(i) by oral evidence of one who can vouchsafe the same,
(ii) by invoking circumstantial evidence or ‘presumption’ or
(iii) by express admission by the other side.
Admission of Contents of Documents
Admission may dispense with proof; but probative value may be less or nil.
Admissibility & probative value – two matters.
In State of Bihar v. Radha Krishna Singh, AIR 1983 SC 684, it is observed by our Apex Court 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 not carry any conviction and weight or its probative value may be nil.”
Secondary Evidence – Marked without Objection – Court Examines Probative Value
It is well settled that if a party wishes to lead secondary evidence, the Court is obliged to examine the probative value of the document produced in the Court or their contents and decide the question of admissibility of a document in secondary evidence [Rakesh Mohindra v. Anita Beri: 2015 AIR(SCW) 6271; Kaliya v. State of MP: 2013-10 SCC 758; H. Siddiqui v. A. Ramalingam: AIR 2011 SC 1492; Rasiklal Manikchand v. MSS Food Products: 2012-2 SCC 196].
See Notes below under the heading –
“Court examines probative value of secondary evidence.”
Court Has Obligation to Decide Admissibility of Secondary Evidence
As shown above, it is held in Kaliya v. State of MP: 2013-10 SCC 758 (relying on H. Siddiqui v. A. Ramalingam: AIR 2011 SC 1492, and Rasiklal Manikchand v. MSS Food Products: 2012-2 SCC 196) that the court is obliged to decide the question of admissibility of a document in secondary evidence.
In H. Siddiqui v. A. Ramalingam: AIR 2011 SC 1492 it is held as under:
“12. The provisions of Section 65 of the 1872 Act provide for permitting the parties to adduce secondary evidence. However, such a course is subject to a large number of limitations. In a case where the original documents are not produced at any time, nor has any factual foundation been laid for giving secondary evidence, it is not permissible for the court to allow a party to adduce secondary evidence. Thus, secondary evidence relating to the contents of a document is inadmissible, until the non-production of the original is accounted for, so as to bring it within one or other of the cases provided for in the section. The secondary evidence must be authenticated by foundational evidence that the alleged copy is in fact a true copy of the original. Mere admission of a document in evidence does not amount to its proof. Therefore, the documentary evidence is required to be proved in accordance with law. The court has an obligation to decide the question of admissibility of a document in secondary evidence before making endorsement thereon. (Vide Roman Catholic Mission v. State of Madras [AIR 1966 SC 1457] , State of Rajasthan v. Khemraj [(2000) 9 SCC 241 : AIR 2000 SC 1759] , LIC v. Ram Pal Singh Bisen [(2010) 4 SCC 491 : (2010) 1 SCC (L&S) 1072 : (2010) 2 SCC (Civ) 191] and M. Chandra v. M. Thangamuthu [(2010) 9 SCC 712 : (2010) 3 SCC (Civ) 907])”.
H. Siddiqui v. A. Ramalingam is followed in U. Sree v. U. Srinivas: AIR 2013 SC 415
Documents Marked by Consent – Does Oral Evidence Need to Prove Contents
There are three different views on this matter. They are-
1. There must be oral evidence. Even if consent is given for marking the documents, it will only absolve the parties from formally proving the documents and nothing beyond that. That is, though documents are marked by consent, they could not be relied on unless there is no oral evidence to prove their contents.
2. Document stands proved. When documents are marked by consent, there is no further need for a formal proof of the documents, it would amount to proof of whatever the documents contained.
3. If truth is in question it should be specifically proved by proper evidence. In most of the cases, the truth may not remain in question if the contents thereof are proved. But, in rare occasions, even if contents of documents are proved, truth thereof may remain (expressly or implicitly) in question or unrevealed.
If No Objection, Can a Photocopy of Document be Marked?
Yes.
It would not be legitimate for the court to refrain from exhibiting a relevant document which could be received in evidence on the (express or implied) concession or admission of the opposite side (as regards mode of proof, including production of a photocopy), in the scheme of our Procedure Codes and Evidence Act.
In Kalita Iqbal Basith v. N Subbalakshmi, (2021) 2 SCC 718, our Apex Court considered admission of a photocopy of an official document, in the following factual matrix:
The failure to produce the originals or certified copies of other documents was properly explained as being untraceable after the death of the brother of P.W.1 who looked after property matters.
The attempt to procure certified copies from the municipality was also unsuccessful as they were informed that the original files were not traceable.
The photocopies were marked as exhibits without objection.
The respondents never questioned the genuineness of the same.
Despite the aforesaid, and the fact that these documents were more than 30 years old, were produced from the proper custody of the appellants along with an explanation for nonproduction of the originals, they were rejected (by the High Court) without any valid reason holding that there could be no presumption that documents executed by a public authority had been issued in proper exercise of statutory powers.
In this premises the Supreme Court held as under:
“This finding in our opinion is clearly perverse in view of Section 114(e) of the Indian Evidence Act 1872, which provides that there shall be a presumption that all official acts have been regularly performed. The onus lies on the person who disputes the same to prove otherwise.”
Delhi High Court held in Sumita @ Lamta v. Devki, (Valmiki J.Mehta, J.), 25 Sep 2017 (Indiakanoon), as under:
“…. it is conceded by the counsel for the appellants/defendants that before commencement of cross-examination of PW-1 and PW-2 there was no objection raised that the Will cannot be proved inasmuch as the Will only is a photocopy. Once no objection is raised to the mode of proof on account of lack of original, then now the objection cannot be raised to the mode of proof as the objection to the mode of proof stands waived in view of the ratio as laid down in the judgment of the Supreme Court in the case of R.V.E. Venkatachala Gounder Vs. Arulmigu Viswesaraswami & V.P. Temple and Another, (2003) 8 SCC 752.”
Can the Court Refrain from Marking Documents for no Formal Proof?
No.
Relevant and Admissible Documents have be received in evidence ‘Subject to Proof’ or ‘Subject to Objection’?
In M. Siddiq v. Mahant Suresh Das, (Ayodhya Case), 2020-1 SCC 1, the practice of marking documents “subject to objection and proof” was referred to as under:
“539. On 7 February 2002, counsel for the plaintiffs in Suit 5 filed a report dated 3 February 2002 before the High Court of Dr K V Ramesh, pertaining to the “Ayodhya Vishnu Hari temple inscription”. The documents were taken on record “subject to objection and proof” as required by the provisions of the Evidence Act 1872. During the course of the trial, the plaintiffs of Suit 5 claimed that the above inscription was recovered on 6/7 December 1992 from the debris of the disputed structure which was demolished. The inscription is in stone with a dimension of 115cm X 55cm. Under the orders of the Court, an e-stampage (paper no. 203 C- 1/1) was prepared and was deciphered by Dr K V Ramesh (OPW-10) who is an epigraphist. The translation of the text was marked as Exhibit 2 in Suit 5. The case of the plaintiffs is that there was a Vishnu Hari temple at the site in dispute and it was on the demolition of the temple that a mosque was constructed in its place. In this segment, the inscription forms the fulcrum of the submission.”
In Uttaradi Mutt v. Raghavendra Swamy Mutt, 2018 0 AIR(SC) 4796; 2018-10 SCC 484,it is obserd as under:
“As regards this plea, we find that the High Court has made it amply clear that the fact that the applications are allowed per se is not to give any direction to straightaway exhibit the additional documents, but that it could be exhibited subject to proof. The High Court has unambiguously observed that the documents will have to be proved in accordance with law. We make it amply clear that by allowing the three applications filed by the respondent/defendant under Order XLI Rule 27 of CPC, it would not follow that the additional documents/additional evidence can be straightaway exhibited rather, the respondent would have to not only prove the existence, authenticity and genuineness of the said documents but also the contents thereof, as may be required by law.”
In Jarnail Singh v. State of Punjab, AIR 2022 SC 3350: 2022-10 SCC 451, acquitting the accused it is held as under:
“13. From the above statements of the Inspecting Team, they failed to firstly prove the recovery of the tickets to have been validly made. Secondly, they also failed to prove the enquiry report as only a photocopy was filed and objections to the same was recorded in the statement itself, that the same would be exhibited subject to proof of the existence of the documents in original and loss thereof. The prosecution did not make that effort to prove the existence of the original and loss thereof in order to take an order for leading secondary evidence.”
The practice of exhibiting documents ‘subject to proof and relevancy’ is referred to in Ameer Minhaj v. Dierdre Elizabeth (Wright) Issar, 2018-7 SCC 639, and State of Bihar v. P. P. Sharma, AIR 1991 SC 1260: 1992 Supp1 SCC 222.
In Rajathi v. Arukkani Ammal, 2001-3 CTC 34; 2001-2 MLJ 364 it is held by F.M. Ibrahim Kalifulla, J., as under:
“Therefore, there should not be any impediment for the court below to receive the document in question subject to the proof of the said document, so as to rely upon the same at later point of time, I am of the view that to reject the receipt of the very document at the threshold, under the facts and circumstances of the case is totally unjustified and not in accordance with law. In fact as contended by the learned counsel for the petitioner, the court below unfortunately concentrated it’s whole attention towards the validity of the said document, instead of finding out as to whether it could be received as secondary evidence under Section 65(a) of the Indian Evidence Act. The mere receipt of the said document subject to the proof as rightly contended by the learned counsel for the petitioner would not, in any way, cause prejudice to the respondent.
4. In the result, this revision petition is allowed. The order impugned in this petition is set aside. The court below is directed to receive of it the document, subject to proof by the petitioner in the manner known to law.”
Court’s Jurisdiction to Require to Prove an Admitted Document
The principles in the proviso to Sec. 58 Evidence Act (that the Court may, in its discretion, require the facts admitted to be proved otherwise than by such admissions) apply to category of documents that require specific evidence as to proof of its contents (other than the mere statements in the document).
See: Kaliya v. State of MP: 2013 10 SCC 758; Rakesh Mohindra v. Anita Beri: 2015 AIR SCW 6271.
In any case, besides the powers of the court under Sec. 165 of Evidence Act, the scheme of the Procedural Acts (Evidence Act, CPC and CrPC) shows that the court has jurisdiction to require the party concerned to prove that document. We can see it in Sec. 58 of Evidence Act, Order XII, Rule 2A Proviso of the CPC and Sec. 294 of the CrPC .
Section 294 of Code of Criminal Procedure reads as follows:
“294. No formal proof of certain documents. (1) Where any document is filed before any Court by the prosecution or the accused, the particulars of every such document shall be included in a list and the prosecution or the accused, as the case may be, or the pleader for the prosecution or the accused, if any, shall be called upon to admit or deny the genuineness of each such document.
(2) The list of documents shall be in such form as may be prescribed by the State Government.
(3) Where the genuineness of any document is not disputed, such document may be read in evidence in any inquiry, trial or other proceeding under this Code without proof of the signature of the person to whom it purports to be signed:
Provided that the Court may, in its discretion, require such signature to be proved.”
Relevancy Stand on Another Footing
In Pandappa Mahalingappa v. Shivalingappa Murteppa, AIR 1946 Bombay 193, it is observed as under:
“As held in 10 L.A. 79 and 5 Bom. L.R. 708 the discretion exercised by the trial Court in admitting secondary evidence on the ground that the original is lost should not be interfered with in appeal. But it is urged that the certified copy should not have been exhibited without proof of the execution. From the application (Ex.66) and the roznama it appears that the trial Court exhibited it under S. 90, Evidence Act, on the ground that it was more than 30′ years old. In the lower appellate court the admissibility of the document does not appear to have been challenged. It is urged that as held in 44 Bom. 192 the erroneous omission before the lower Courts to object to the admission of evidence does not make that evidence relevant. The principle of that ruling, however, applies only where the document is per se irrelevant or inadmissible and no objection was taken to its admissibility: 8 Pat. 788. Where evidence is admitted in the trial Court without any objection to its reception, and the evidence is admissible and relevant, then no objection will be allowed to be taken to its reception at any stage of the litigation on the ground of improper proof. But if the evidence is irrelevant or inadmissible, as for instance, owing to want of registration, omission to take objection to its reception does not make it admissible, and the objection may be raised even in appeal for the first time; 28 L.A. 106. As observed by Das J. in A.L.R. 1922 Pat. 122 “the question of relevancy is a question of law and can be raised at any stage, but the question of proof is a question of procedure, and is capable of being waived.“
In this case the secondary evidence of the mortgage-deed was held to be admissible as the original was lost. What is now urged is that the execution should have been proved and this objection was not raised either in the trial Court or in the lower appellate Court. It is however true that no evidence was adduced to prove the execution of the original of Ex.68 as the trial Court was prepared to raise the presumption in favour of the genuineness of the document under S. 90, Evidence Act. Whether such a presumption can be raised or not is a question of law, and it can, therefore, be urged at any stage of the litigation. It is now well settled by the ruling of the Privy Council in 37 Bom. L.R. 805 that the statutory presumption under S. 90, Evidence Act, cannot be made in respect of a document merely on production of its copy under S. 65 of the Act. Their Lordships observed (p. 811) “Section 90 clearly requires the production to the Court of the particular document in regard to which the Court may make the statutory presumption. If the document produced is a copy, admitted under S.65 as secondary evidence, and it is produced from proper custody, and is over 30 years old, then the signatures authenticating the copy may be presumed to be genuine.”
PART II
EFFECT OF MARKING DOCUMENTS WITHOUT OBJECTION
Effect of marking a document without formal proof on admission (or without objection) is also a subject of controversy.
Effect of Marking Documents Without Objection
Effect of marking a document without formal proof, or on admission (or without objection), is also a subject of controversy.
First view (a) Proof (Contents and ‘Truth of its Contents’) stands established. It cannot be questioned afterwards.
(b) Truth also: See: Rafia Sultan v. Oil And Natural Gas Commission, 1986 ACJ 616; 1985-2 GujLR 1315.
(c) Admission of contents – but, does not dispense with proof of truth of its contents.
a)RVE Venkatachala Gounder v. Arulmigu Viswesaraswami: AIR 2003 SC 4548; (b) Rafia Sultan v. Oil And Natural Gas Commission (I.C. Bhatt, S.B. Majmudar, JJ.), 1985-2 GujLR 1315: No objection about the truth of contents … before the trial Court. … It is therefore too late in the day for Miss Shah for the Commission to canvass for the first time before us in appeal. Neeraj Dutta Vs. State (Govt. of N.C.T. of Delhi) reported in [2023] 4 SCC 731: If no objection as to its mode of proof , no such objection could be allowed to be raised at any later stage. (c) Sait Tarajee Khimchand v. Yelamarti Satyam, AIR 1971 SC 1865; Nandkishore Lalbhai Mehta v. New Era Fabrics, AIR 2015 SC 3796.
Second View Even if no objection, it does not dispense with proof (as to, both, existence of the document and its truth).
(Note: It may not be legitimate to apply this principle literatim)
M. Chandra v. M. Thangamuthu, 2010-9 SCC 712 (Foundational evidence as to secondary evidence essential); LIC v. Ram Pal Singh Bisen: 2010-4 SCC 491 (Filing of the Inquiry Report or the evidence adduced during the domestic enquiry); Birad Mal Singhvi v. Anand Purohitb: 1988 (Supp) SCC 604 (date of birth).
Third view If truth is in issue, mere proof of contents, or marking without objection, is not proof of truth.
See: Narbada Devi Gupta v. Birendra Kumar Jaiswal, 2003-8 SCC 745; Ramji Dayawala Vs. Invest Import: AIR 1981 SC 2085.
Fourth view Admission of contents, and dispenses with proof and truth; but its probative value will be a matter for appreciation by court.
See: State of Bihar v. Radha Krishna Singh, AIR 1983 SC 684 (Admission and probative value – different); Rakesh Mohindra v. Anita Beri: 2015 AIR(SCW) 6271; Kaliya v. State of MP: 2013-10 SCC 758; H. Siddiqui v. A. Ramalingam: AIR 2011 SC 1492; Rasiklal Manikchand v. MSS Food Products: 2012-2 SCC 196.
Fifth view Admission of contents, and dispenses with proof and truth; but Court should require (in proper cases) the party producing the document to adduce proper evidence, and to cure formal defects, invoking – • Sec. 165 of Evidence Act • Sec. 58 of Evidence Act • O. XII, r. 2A Proviso, CPC and • Sec. 294 of the CrPC.
See: Harkirat Singh v. Amrinder Singh, (2005) 13 SCC 511; Umesh Challiyil v. K.P. Rajendra, (2008) 11 SCC 740; KK Ramachandran Master v. MV Sreyamakumar, (2010) 7 SCC 428; AIR 2015 SC 3796.
Propositions Analysed
1. Marked Without Objection – Its ‘Contents’ Stand Proved, as Admission
(a) Admission, or exhibiting, of documents in evidence and proving the truth of its contents (veracity of the same) are two different processes. In certain cases, as comes out from Sec. 56, 57 and 58 of the Evidence Act, when a document is admitted, or marked without objection, separate proof need not be warranted. Similarly, separate proof may not be required when presumptions can be invoked (e.g. document in ordinary course of business, a letter obtained in reply).
When a document is marked without objection, its ‘contents’ stand proved. See: RVE Venkatachala Gounder v. Arulmigu Viswesaraswami: AIR 2003 SC 4548. See also:
Narbada Devi v. Birendra Kumar: (2003) 8 SCC 745
Dayamati Bai v. K.M. Shaffi : AIR 2004 SC 4082
Oriental Insurance Co v. Premlata: (2007) 8 SCC 575
Thimmappa Rai v. Ramanna Rai,(2007) 14 SCC 63.
Effect of marking document without objection is laid down in the following two recent decisions of the Supreme Court. In both these cases, it is seen, the Apex Court has taken the view that the ‘truth’ is also stood proved.
Neeraj Dutta v. State (Govt. of N. C. T. of Delhi)
The Constitution Bench of our Apex Court laid down in Neeraj Dutta v. State (Govt. of N. C. T. of Delhi), AIR 2023 SC 330; 2023 4 SCC 731, as under:
Section 61 deals with proof of contents of documents which is by either primary or by secondary evidence.
When a document is produced as primary evidence, it will have to be proved in the manner laid down in Sections 67 to 73 of the Evidence Act.
Mere production and marking of a document as an exhibit by the court cannot be held to be due proof of its contents. Its execution has to be proved by admissible evidence. On the other hand, when a document is produced and admitted by the opposite party and is marked as an exhibit by the court, … (sic – no objection can be raised at any later stage with regard to proofof its contents).
The contents of the document must be proved either by the production of the original document i.e., primary evidence or by copies of the same as per Section 65 as secondary evidence.
So long as an original document is in existence and is available, its contents must be proved by primary evidence.
It is only when the primary evidence is lost, in the interest of justice, the secondary evidence must be allowed.
Primary evidence is the best evidence and it affords the greatest certainty of the fact in question.
Thus, when a particular fact is to be established by production of documentary evidence, there is no scope for leading oral evidence.
What is to be produced is the primary evidence i.e., document itself. It is only when the absence of the primary source has been satisfactorily explained that secondary evidence is permissible to prove the contents of documents.
Secondary evidence, therefore, should not be accepted without a sufficient reason being given for non-production of the original.
Once a document is admitted, the contents of that document are also admitted in evidence, though those contents may not be conclusive evidence.
Moreover, once certain evidence is conclusive it shuts out any other evidence which would detract from the conclusiveness of that evidence.
There is a prohibition for any other evidence to be led which may detract from the conclusiveness of that evidence and the court has no option to hold the existence of the fact otherwise when such evidence is made conclusive.
It is held further as under:
“44. Section 64 of the Evidence Act states that documents must be proved by primary evidence except in certain cases mentioned above. ….. Thus, once a document has been properly admitted, the contents of the documents would stand admitted in evidence, and if no objection has been raised with regard to its mode of proof at the stage of tendering in evidence of such a document, no such objection could be allowed to be raised at any later stage of the case or in appeal vide Amarjit Singh v. State (Delhi Admn.) 1995 Cr LJ 1623 (Del) (“Amarjit Singh”). But the documents can be impeached in any other manner, though the admissibility cannot be challenged subsequently when the document is bound in evidence.”
In PC Thomas v. PM Ismail, AIR 2010 SC 905; 2009-10 SCC 239, it is observed as under:
“No objection on pleas of “inadmissibility” or “mode of proof” was raised at the time of their exhibition or any time later during trial, when most of the witnesses, produced by the parties were confronted with these, as duly exhibited, bearing stamp marking with particulars, prescribed under Order XIII Rule 4 of the Code of Civil Procedure, 1908 and duly signed as such.
In our opinion, it is too late in the day now to object to their exhibition on the ground of “prescribed procedure” i.e. mode of proof.
Moreover, we also find that it was nobody’s case that the said documents were got printed by John K or distributed amongst voters by him. Absence of proof of acknowledgment by him because of non production of John K as a witness, in the circumstances, in our view, is inconsequential.
Admittedly, John K was a well known leader of high stature, recognized as such by Christian/Catholic voters including those mentioned in Para 17 (supra) and, therefore, there is no question of drawing an adverse inference against the election petitioner for not examining him, as strenuously urged on behalf of the appellant, particularly when the printing and circulation of offending material (Exts.P1 and P2) has been proved by the election petitioner beyond reasonable doubt.”
Objection as to Truth of Contents, First Time In Appeal – Effect
In Rafia Sultan v. Oil And Natural Gas Commission (I.C. Bhatt, S.B. Majmudar, JJ.), 1986 ACJ 616; 1986 Guj LH 27; 1985-2 GujLR 1315 it is observed as under:
“It was never the case of the Commission that report which was submitted in a sealed cover was not the genuine and true report of the committee appointed by the Commission itself. Thus in short no objection about the truth of contents of Ex. 24/1 i. e. Ex. 32 was ever put forward before the trial Court and rightly so as that was the report of its own committee of experts appointed by the Commission for enlightening itself about the causes of the accident and about the future safety steps which were required to be taken to avoid such accidents. … Not only that but the witness of the defendant accepted the contents of the said document Ex. 32. Nothing was suggested by him or even whispered to the effect that the contents of the said report were in any way untrue. …. In fact both the sides have relied upon different parts of Ex. 32 in support of their rival contentions on the aspect of negligence and contributory negligence. It is therefore too late in the day for Miss Shah for the Commission to canvass for the first time before us in appeal that contents of Ex. 32 were not proved in accordance with law and hence the document was required to be taken off the record. It is now well settled that objection about mode of proof can be waived by a party and that such objection is raised by the party at the earliest opportunity in the trial Court such objection will be deemed to have been waived and cannot be permitted to be raised for the first time in appeal (vide P. C. Purushottamman v. S. Perumal AIR 1972 SC 608; Pandappa v. Shivlingappa 47 BLR. 962; and Gopaldas and another v. Shri Thakurli, AIR 1943 PC 83 at page 87 ). In view of this settled legal position the objection raised by Miss Shah against admissibility of Ex. 32 viz. that its contents were not proved in accordance with law has to be repelled.”
(b) Proof of Execution may not be Enough: Exhibiting of documents in evidence, without objection, and proving the same before the court are two different process.
In certain cases, as comes out from Sec. 56, 57 and 58 of the Evidence Act, when a document is admitted, separate proof need not be warranted. Separate proof may not be required when presumptions can be invoked (e.g. document in ordinary course of business, a letter obtained in reply).
(c) Factual foundation to give secondary evidence must be established:
Contents of documents are presented in two ways:
documents in original
(by way) of secondary evidence.
The party has to lay down the factual foundation to establish the right to give secondary evidence where the original document cannot be produced [Rakesh MohindraVs. Anita Beri: 2015AIR(SCW) 6271].
Secondary-evidence–Marked Without Objection – Objection stands waived. When the party gives in evidence a certified-copy/secondary-evidence without proving the circumstances entitling him to give secondary evidence, the opposite party must raise his objection (if so) at the time of admission of such documents. In case, an objection is not raised at that point of time, it is precluded from being raised at a belated stage. It stands waived. [Iqbal Basith v. N Subbalakshmi, (2021) 2 SCC 718;Kaliya v. State of MP: 2013-10 SCC 758]
2. Mere Marking – Not Dispense with Proof (of truth of contents)
Following are the often-cited cases on this subject.
The Proposition -Mere Marking Does Not Prove the Contents – was NOTapplied in the following decisions.
Decision
Did the Documents Mark without Proper Proof was accepted in evidence?
Reason for NOT Appling the Proposition Mere Marking Does Not Prove the Contents
Narbada Devi Gupta v. Birendra Kumar Jaiswal, 2003-8 SCC 745
Yes. The rent receipts were received in evidence. (without formal proof)
The rent receipts were ‘not disputed’ by the other side.
Kaliya v. State of Madhya Pradesh, 2013-10 SCC 758
Yes. The secondary evidence of dying declaration produced in this case was accepted by the Court.
Secondary evidence was adduced with foundational evidence (for producing copy; not original)
The Proposition -Mere Marking Does Not Prove the Contents – was applied in the following decisions; but, not unreservedly.
Decision
Did the proposition – Mere Marking Does Not Prove the Contents – unreservedlyapply?
Reason for NOT applying the Proposition Mere Marking Does Not Prove Contents, unreservedly
Ramji Dayawala v. Invest Import: AIR 1981 SC 2085
No. Truth of contents of a letter and two telegrams were not taken. (though marked)
Truth of the facts in the document was “in issue“
M. Chandra v. M. Thangamuthu, 2010-9 SCC 712
No. Validity and Genuineness of the Photocopy (of the Caste Certificate) was not accepted (though marked)
Validity and Genuineness of the Caste Certificate was very much in question
H. Siddiqui v. A. Ramalingam, (2011) 4 SCC 240
No. Contents of the Photocopy was not received as proof (though marked)
Photocopy was shown to the witness during cross-examination alone, and Signature alone was admitted by the witness.
Tarajee Khimchand v. Yelamarti Satyam, AIR 1971 SC 1865
No. Accounts of the Plaintiff was not received as proof (though marked)
The accounts of the Plaintiff would not be proved by itself
In Sait Tarajee Khimchand v. Yelamarti Satyam, AIR 1971 SC 1865, the Supreme Court observed that mere marking of documents (day book and ledger) as exhibits do not dispense with the proof of documents. In Nandkishore Lalbhai Mehta v. New Era Fabrics, AIR 2015 SC 3796, it is observed that mere marking as exhibit and identification of executor’s signature by one of witnesses do not prove contents of a document.
In Kaliya v. State of Madhya Pradesh (2013-10 SCC 758) it is held as under:
“Mere admission of a document in evidence does not amount to its proof. Nor, mere marking of exhibit on a document does not dispense with its proof, which is otherwise required to be done in accordance with law. (Vide: The Roman Catholic Mission v. The State, AIR 1966 SC 1457; Marwari Khumhar v. Bhagwanpuri Guru Ganeshpuri AIR 2000 SC 2629; RVE Venkatachala Gounder v. Arulmigu AIR 2003 SC 4548; Smt. Dayamathi Bai v. K.M. Shaffi, AIR 2004 SC 4082; and LIC of India v. Rampal Singh Bisen,2010-4 SCC 491).”
[Note: Further held: “In case, an objection is not raised at that point of time, it is precluded from being raised at a belated stage.”]
In Dibakar Behera v. Padmabati Behera, AIR 2008 Ori 92, it is observed [referring RVE Venkatachala Gounder v. Arulmigu Viswesaraswami, AIR 2003 SC 4548, Dayamati Bai v. K.M. Shaffi, 2004 SC 4082, Bhagyarathi Das v. Agadhu Charan Das, 62 (1986) CLT 298, Budhi Mahal v. Gangadhar Das, 46 (1978) CLT 287 etc.] that a close reading of the above judicial pronouncements would show that whenever a document is marked as exhibit without objection, it will be presumed that a party having right of objection has waived formal proof of the document and in such situation, the entire contents of the document would be admissible in evidence. How ever, by such admission of document, the truth and correctness of the contents by it self would not be established and there must be some evidence to support the contents of such document.
Secondary evidence relating to the contents of a document is inadmissible, until the non-production of the original is accounted for. The secondary evidence must be authenticated by foundational evidence that the alleged copy is in fact a true copy of the original. Mere admission of a document in evidence does not amount to its proof. Therefore, the documentary evidence is required to be proved in accordance with law.
The court has an obligation to decide the question of admissibility of a document in secondary evidence before making endorsement thereon. [H. Siddiqui v. A. Ramalingam: AIR 2011 SC 1492; Nandkishore Lalbhai Mehta v. New Era Fabrics: AIR 2015 SC 3796]
In Rakesh Mohindra v. Anita Beri [2015AIR(SCW) 6271] it is held:
“Mere admission of secondary evidence, does not amount to its proof. The genuineness, correctness and existence of the document shall have to be established during the trial and the trial court shall record the reasons before relying on those secondary evidences.”
Court can Reject Irrelevant or Inadmissible Documentat any stage
Order 13 Rule 3 CPC reads as under:
“Rejection of irrelevant or inadmissible documents. ― The Court may at any stage of the suit reject any document which it considers irrelevant or otherwise inadmissible, recording the grounds of such rejection.
Order 13 Rule 3 CPC speaks only as to irrelevant or inadmissible documents alone; and it is not applicable to a document which can be received in evidence on the concession or admission of the opposite side.
Objection to be Raised When document is admitted
It was observed by the Supreme Court in 2001 in Bipin Shantilal Panchal v. State of Gujarat, AIR 2001 SC 1158, that that ‘it is an archaic practice that during the evidence collecting stage, whenever any objection is raised regarding admissibility of any material in evidence the court does not proceed further without passing order on such objection’. And the Court directed as under:
“When so recast, the practice which can be a better substitute is this: Whenever an objection is raised during evidence taking stage regarding the admissibility of any material or item of oral evidence the trial court can make a note of such objection and mark the objected document tentatively as an exhibit in the case (or record the objected part of the oral evidence) subject to such objections to be decided at the last stage in the final judgment.”
But, the subsequent decisions in R.V.E. Venkatachala Gounder: AIR 2004 SC 4082; Dayamathi Bai (2004) 7 SCC 107 took a contra view. It was held that the objection as to ‘mode of proof’ should be taken at the time of marking of the document as an exhibit, so that the defect can be cured by the affected party.
In Re: To Issue Certain Guidelines Regarding Inadequacies And Deficiencies In Criminal Trials v. State of Andhra Pradesh, 2021-10 SCC 598, overruled (ruled – stood modified) Bipin Shantilal Panchal v. State of Gujarat, AIR 2001 SC 1158. It is directed as under:
“The presiding officer therefore, should decide objections to questions, during the course of the proceeding, or failing it at the end of the deposition of the concerned witness.”
It appears that the decision taken by a Magistrate to mark the document – “subject to objection” is improper; nevertheless, marking – “subject to proof” is a permissible action, for it is a “decision” ruled-down in In Re: To Issue Certain Guidelines Regarding Inadequacies And Deficiencies In Criminal Trials v. State of Andhra Pradesh, 2021-10 SCC 598.
Objection About Mode of Proof Can Be Waived
RVE Venkatachala v. Arulmiga Viswesaraswami & V.P. Temple: AIR 2004 SC 4082, is often relied on by the courts to establish the proposition – mode of proof can be waived..
In Sk. Farid Hussinsab v. State of Maharashtra, 1983 CrLJ 487, it was held as under:
“6. In civil cases mode of proof can be waived by the person against whom it is sought to be used. Admission thereof or failure to raise objection to their tendering in evidence amount to such waiver. No such waiver from the accused was permissible in criminal cases till the enactment of the present Code of Criminal Procedure in 1973…
Section 294(1) of the Code enables the accused also, to waive this mode of proof, by admitting it or raising no dispute as to its genuineness when called upon to do so under sub-section (1). Sub-section (3) enables the Court to read it in evidence without requiring the same to be proved in accordance with the Evidence Act. There is nothing in Section 294 to justify exclusion of it, from the purview of “documents” covered thereby. The mode of proof of it also is liable to be waived as of any other document.”
(Quoted in Sonu @ Amar v. State of Haryana, AIR 2017 SC 3441; 2017-8 SCC 570)
It is held in Rafia Sultan Widow of Mirza Sultan Ali Baig v. Oil And Natural Gas Commission (I.C.Bhatt, S.B. Majmudar, JJ.), 1986 GujLH 27; 1985-2 GujLR 1315, as under:
“It is now well settled that objection aboutmode of proof can be waived by a party and that such objection is raised by the party at the earliest opportunity in the trial Court such objection will be deemed to have been waived and cannot be permitted to be raised for the first time in appeal (vide P. C. Purushottamman v. S. Perumal AIR 1972 SC 608; Pandappa v. Shivlingappa 47 BLR. 962; and Gopaldas and another v. Shri Thakurli AIR 1943 PC 83 at page 87 ).”
3. IF ‘TRUTH’ IS IN ISSUE- Mere Marking Not Amounts to ‘Waiver’
The fundamental principles as to proof of a document is that the proof must be given by a person who can vouchsafe for the Truth of its contents (Narbada Devi Gupta v. Birendra Kumar Jaiswal, 2003-8 SCC 745).
It is legitimate to say that this requirement as to proof of ‘truth’ is independent from inviting ‘proof of signature and handwriting’ in Sec. 67 to 71 of the Evidence Act. This proposition is clear from Sec. 67, which lays down the fundamental principles as to the proof of documents. Sec. 67 reads as under:
“67. Proof of signature and handwriting of person alleged to have signed or written document produced—If a document is alleged to be signed or to have been written wholly or in part by any person, the signature or the handwriting of so much of the document as is alleged to be in that person’s handwriting must be proved to be in his handwriting.”
Though proof of execution (dealt with in Sec. 67 to 71) is independent from proof as to ‘truth’ of contents of a document, proof as to ‘truth’ can be presumed by the court, in most cases, on ‘proof of execution’. It is more so, when a document is admitted without objection. Proof as to ‘truth’ of contents is essential if ‘truth’ is in issue, or in dispute. It rarely occurs.
If ‘TRUTH’ is in issue, or in dispute,marking a document without objection, or mere proof of handwriting or execution,by itself, need not absolve the duty to prove the truth as to the contents of the documents. (Ramji Dayawala v. Invest Import, AIR 1981 SC 2085; Achuthan Pillai vs Marikar (Motors) Ltd., AIR 1983 Ker 81; Suresh v. Tobin, 2013-1 KerLT 293). Court has a duty to see that the statement of a witness gets independent corroboration, direct or circumstantial, in proper cases (Ahalya Bariha v. Chhelia Padhan, 1992 Cri.LJ 493).
In Ramji Dayawala Vs. Invest Import: AIR 1981 SC 2085, it us held as under:
“If the truth of the facts stated in a document is in issue mere proof of the handwriting and execution of the document would not furnish evidence of the truth of the facts or contents of the document. The truth or otherwise of the facts or contents so stated would have to be proved by admissible evidence, i.e. by the evidence of those persons who can vouchsafe for the truth of the facts in issue.”
Presumption on a registered document and undue influence under S. 16, Contract Act: In Lakshmi v. Muthusamy, 2012(1) CTC 53 it was contended that there was presumption on a registered document that the contents of the said document are true and genuine (Vimalchand Ghevarchand Jain v. Ramakant Eknath Jadoo, 2009-5 SCC 713, relied on). The Madras High Court (S. Nagamuthu, J.) rejected the argument for, there was another question – whether the plaintiff had discharged the burden of proving ‘absence of undue influence’ as contemplated in Section 16 of the Indian Contract Act which provided for the burden of proof of absence of undue influence. It was pointed out that once the initial burden of proving the position of the plaintiff to dominate the will of the defendant was discharged, the burden was shifted on the plaintiff to prove absence of undue influence. The Court found it not safe to rely on the evidence of the plaintiff alone to hold absence undue influence on the part of the plaintiff. The High Court relied on the Supreme Court decision in Krishnamohan Kul v. Pratima Maity, (2004) 9 SCC 468, where it was held as under:
“The onus to prove the validity of the deed of settlement was on Defendant 1. When fraud, mis-representation or undue influence is alleged by a party to the suit, normally, the burden is on him to prove such fraud, undue influence or mis-representation. 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, mis-representation or undue influence is upon the person in the dominating position, and 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, the party who is in a position of active confidence. A person standing in a fiduciary relation to another has a duty to protect the interest given to his care and the court watches with jealously all transactions between such persons so that the protector may not use his influence or the confidence to his advantage. When the party complaining shows such relation, the law presumes everything against the transaction and the onus is cast upon the person holding the position of confidence or trust to show that the transaction is perfectly fair and reasonable, that no advantage has been taken of his position. This principle has been ingrained in Section 111 of the Indian Evidence Act.”
If payment disputed, mere marking of a registered sale deed not sufficient. In Suresh CV v. Tobin, ILR 2013(1) Ker. 30: 2013-1 KLT 293, the Kerala High Court held that if payment of price for sale was disputed, such fact would not be proved by mere production and marking of a registered sale deed which stated or narrated the payment, and that it was necessary to adduce oral evidence to prove such fact. The Court relied on Ramji Dayawala Vs. Invest Import (AIR 1981 SC 2085) which held that if the truth of the facts stated in a document is in issue mere proof of the handwriting and execution of the document would not furnish evidence of the truth of the facts or contents of the document and that the truth or otherwise of the facts or contents so stated would have to be proved by admissible evidence i.e. by the evidence of those persons who can vouchsafe for the truth of the facts in issue.
4. Admission of Contents– May dispense with proof; but Probative Value may be less or nil
Admissibility & probative value – two matters. State of Bihar v. Radha Krishna Singh (AIR 1983 SC 684) it is observed:
“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 not carry any conviction and weight or its probative value may be nil.”
Court examines probative value of secondary evidence:
It is well settled that if a party wishes to lead secondary evidence, the Court is obliged to examine the probative value of the document produced in the Court or their contents and decide the question of admissibility of a document in secondary evidence, Rakesh Mohindra v. Anita Beri: 2015 AIR(SCW) 6271.
Contents of the document cannot be proved by mere filing the document in a court. Under the Law of Evidence, it is necessary that contents of documents are required to be proved either by primary or by secondary evidence. Mere marking a document as an ‘exhibit’ will not absolve the duty of to prove the documents in accordance with the provisions of the Evidence Act. At the most, marking ‘exhibit’may amount to proof of contents, but not its truth.
Documents which are not produced and marked as required under the Evidence Act cannot be relied upon by the Court.
See: LIC v. Ram Pal Singh Bisen: 2010-4 SCC 491 (Filing of the Inquiry Report or the evidence adduced during the domestic enquiry);
M. Chandra v. M. Thangamuthu, AIR 2015 SC 3796.
Nandkishore Lalbhai Mehta Vs.New Era Fabrics: AIR 2015 SC 3796;
Birad Mal SinghviVs. Anand Purohitb: 1988 (Supp) SCC 604 (date of birth)
Even when a document is technically admitted in court, the probative value thereof will always be a matter for the court to determine. That is, it is depended upon the nature of each case. The probative value of Scene-Mahazar, Postmortem Report, photocopy of a Registered Deed etc. without supporting legal evidence may be lesser. In such cases the court can refrain from acting upon such documents until regular evidence is tendered.
In Kaliya v. State of MP: 2013-10 SCC 758 (relying on H. Siddiqui v. A. Ramalingam: AIR 2011 SC 1492, and Rasiklal Manikchand v. MSS Food Products: 2012-2 SCC 196) held as under:
“The court is obliged to examine the probative value of documents produced in court or their contents and decide the question of admissibility of a document in secondary evidence.”
[Note: Further held: “In case, an objection is not raised at that point of time, it is precluded from being raised at a belated stage.”]
In Life Insurance Corporation of India v. Ram Pal Singh Bisen [2010-4 SCC 491], it is observed as under:
“26. We are of the firm opinion that mere admission of document in evidence does amount to its proof. In other words, mere marking of exhibit on a document does dispense with its proof, which is required to be done in accordance with law. …..27. It was the duty of the appellants to have proved documents Exh.-A-1 to Exh. A-10 in accordance with law. Filing of the Inquiry Report or the evidence adduced during the domestic enquiry would partake the character of admissible evidence in Court of law. That documentary evidence was also required to be proved by the appellants in accordance with the provisions of the Evidence Act, which they have failed to do.”
The Calcutta High Court quoting Life Insurance Corporation of India v. Ram Pal Singh Bisen, 2010-4 SCC 491, it is observed in Bajaj Allianz General Insurance Company v. Smt. Santa, 2019-2 ACC 36, that ‘even if the document had been marked as Exhibit-A without objection, without a formal proof thereof in accordance with the provisions of the Evidence Act, such document lost its credibility and is of no probative value’.
In Kalyan Singh, v. Chhoti, AIR 1990 SC 396, it is observed as under:
“A certified copy of a registered sale deed may be produced as secondary evidence in the absence of the original. But in the present case Ex. 3 is not certified copy. It is just an ordinary copy. There is also no evidence regarding content of the original sale deed. Ex.3 cannot therefore, be considered as secondary evidence. The appellate Court has a right and duty to exclude such evidence.”
5.Court should allow concerned party, to adduce proper evidence to prove documents
As stated in detail above, besides the powers of the court under Sec. 165 of Evidence Act, the scheme of the Procedural Acts shows that the court has jurisdiction to require the party concerned to prove that document. (Sec. 58 of Evidence Act and Order XII, Rule 2A Proviso of the CPC and Sec. 294 of the CrPC).
Defect for not producing a proper power of attorney being curable, in Haryana State Coop. Supply and Marketing Federation Ltd. v. Jayam Textiles, 2014 AIR SC 1926 (a case under Section 138 Negotiable instruments Act), the Apex Court gave opportunity to the petitioner to produce the authorization of Board of Directors. It is observed that the in Raj Narian v. Indira Nehru Gandhi, (1972) 3 SCC 850 it was held that the rules of pleadings are intended as aids for a fair trial and for reaching a just decision. This principle is reiterated in ever so many cases. They include:
F.A. Sapa v. Singora, (1991) 3 SCC 375;
H.D. Revanna v. G. Puttaswamy Gowda, (1999) 2 SCC 217;
V.S. Achuthanandan v. P.J. Francis, (1999) 3 SCC 737;
Mahendra Pal v. Ram Dass Malanger, (2000) 1 SCC 261;
Virender Nath Gautam v. Satpal Singh, (2007) 3 SCC 617 (observed that facta probanda (material facts) are to be set out in the pleadings and facta probantia (particulars or evidence) need not be set out in the pleadings);
Sardar Harcharan Singh Brar v. Sukh Darshan Singh, (2004) 11 SCC 196 (held that defective verification or affidavit is curable);
Harkirat Singh v. Amrinder Singh, (2005) 13 SCC 511;
Umesh Challiyil v. K.P. Rajendra, (2008) 11 SCC 740;
KK Ramachandran Master v. MV Sreyamakumar, (2010) 7 SCC 428; AIR 2015 SC 3796
In Shail Kumari v. Saraswati Devi, 96 (2002) DLT 131, it is observed as under:
“14. In case a document is marked exhibit without an objection from the party which is affected by that document ordinarily its admissibility cannot be questioned at a later stage of the proceedings in the suit. But in cases where such document is marked exhibit without due application of mind in violation of provisions of a statute requiring a particular mode of proof etc., the opposite party may still show during the hearing of final arguments that the document is inadmissible in evidence and should be excluded from consideration because of statutory bar or non-compliance of statutory requirement about mode of proof or otherwise. For instance a will is required to be proved by examining at least one of the attesting witnesses in accordance with Section 68 of the Evidence Act. A document which is inadmissible for want of registration or proper stamp is inadmissible in evidence, unless use of it is permissible for collateral purposes or extracts of accounts book without production of books of account and proof that they were kept in ordinary course of business. Mere putting of exhibits number on these documents in the absence of their proof in accordance with law does not make them part of the evidence to be read for deciding the suit.”
No Objection to Marking; If Court sees Deficiency, it should bring notice of it to counsel
In T.C. Lakshamanan v. Vanaja, ILR 2011-3 (Ker) 228; 2011-3 KHC 86; 2011-3 KLT 347, it is pointed out as under:
“There was no case for the respondent that before marking Ext.A1 any objection was raised as to the admissibility of Ext.A1. Since the affidavit was filed in lieu of chief-examination, through which documents were sought to be received in evidence, before starting cross examination the trial court has to record that an affidavit has been filed in lieu of chief examination and that such and such documents have been marked. It is not to be done mechanically. The Court has to apply its mind while marking the documents to ensure that those documents have been properly admitted in evidence. Simply because the counsel appearing for the other side did not raise any objection the Court is not absolved of its duty to see whether the marking of the documents was done correctly and whether any inadmissible documentwas sought to be admittedin evidence. If the Court finds that any inadmissible document, especially a document which cannot be admitted in evidence as it is unstamped or insufficiently stamped, is sought to be admitted, it should be brought to the notice of the counsel appearing for the parties and an order should be passed with regard to the same. It is not a case where the documents were tentatively marked, subject to objection regarding the admissibility and the ruling as to the admissibility of the same happened to be deferred, as it warranted a detailed argument. The Apex Court in the decision in 2000 (1) SC 1158 (Bipin Shantilal Panchal v. State of Gujarat) has held that such a procedure can be resorted to. Therefore, though document can be admitted tentatively reserving ruling on the admissibility to a later stage, in the case on hand no such objection was raised; on the other hand, it is argued by the learned counsel for the respondent that questions were put to PW1 with regard to the relevancy and other aspects of that document treating that document as having been properly admitted.”
When Execution of Will is Admitted, Should it be Proved?
Section 68 of the Evidence Act, 1872 mandates examination of one attesting witness at least to prove documents required by law to be attested (including Wills). When execution of a Will is ‘Admitted’ by the opposite side, should it be ‘Proved’?
There is difference of opinion.
Following latest decisions assuredly lay down that when execution of the will is ‘admitted’ by the opposite side, it need not be ‘proved’ as required in Sec. 68 (by examining at least one witness).
Boomathi v. Murugesan, 2023-2 Mad LJ 684 (DB)
P. Radha v. Irudayadoss, 2022 SCCOnline Mad 886
Rajeev Gupta v. Prashant Garg, 2022-1 All LJ 435.
Following decisions laid down that even when execution of a will was ‘admitted’ by the opposite side, it must have been ‘proved’ by examining at least one attesting witness.
S.R. Srinivas v. S. Padmavathamma, (2010) 5 SCC 274 – It is observed – the execution of a Will can be held to have been proved only when the statutory requirements for proving the Will are satisfied. Admission in the pleadings as to the Will can only be about the “making of the Will” and not the “genuineness of the Will”.
Vadakkayil Gopalan v. Vadakkayil Paru, (2013) 3 KerLT 69 –It is observed – proof of the Will by examining at least one witness was necessary (even if the Will has been admitted in the pleadings).
Poulose A. V. v. Indira M.R., 2010 (3) KerLT Suppl. 185 : ILR 2010 Ker.388 – It is observed – No distinction is drawn, by Sec. 68, between an admitted Will and a disputed Will in the mode of proof of execution; and therefore, in all cases in which the Will is set up the procedure prescribed in Sec. 68 will have to be followed.
Ramesh Verma v. Lajesh Saxena (2017) 1 SCC 257 – It is observed – the mandate of Section 68 of the Evidence Act has to be followed even in a case where the opposite party does not specifically deny the execution of the document in the written statement.
Sarada v. Radhamani, 2017 (2) KLT 327. In this decision, rendered in a ‘Refence’ to resolve the dispute in the question we discuss, the Kerala High Court (DB) referred all the above decisions. And, declared the following decisions, as Per Incuriam
Princelal G. v. Prasannakumari, 2009 (3) KerLT Suppl. 1342: ILR 2009 (3) Ker. 221 – It is observed – where the execution of the Will is expressly admitted, neither Section 68 nor its proviso is attracted obliging the propounder of the Will to prove due execution of the Will (for, admitted facts need not be proved: Sec. 58 of the Evidence Act).
Thayyullathil Kunhikannan v. Thayyullathil Kalliani, AIR 1990 Ker.226 – Relying on Order VIII Rule 5 C.P.C. and Sec. 58 of the Indian Evidence Act, it is held that when the execution of the Will is admitted, there will not be any requirement to prove the Will.
P. Malliga v. P. Kumaran, 2022 (2) LW 393, (Followed in Ranga Pillai v. Mannar Pillai, 2022, Mad) – It is held by the Madras High Court that a Will shall not be used as evidence until it is proved in the manner prescribed under Section 68 of the Evidence Act. The judge did not agree the view in P. Radha v. Irudayadoss, 2022 SCCOnline Mad 886. (Note: This decision, P. Malliga v. P. Kumaran, is overruled in Boomathi v. Murugesan, 2023-2 Mad LJ 684, DB)
S. 68 to be Followed, Even When the Opp. party does not Deny Execution
Sec. 68 of the Evidence Act reads as under:
“68. Proof of execution of document required by law to be attested—If a document is required by law to be attested, it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution, if there be an attesting witness alive, and subject to the process of the Court and capable of giving evidence:
Provided that it shall not be necessary to call an attesting witness in proof of the execution of any document, not being a will, which has been registered in accordance with the provisions of the Indian Registration Act, 1908 (16 of 1908), unless its execution by the person by whom it purports to have been executed is specifically denied.
In Ramesh Verma v. Rajesh Saxena, 2017-1 SCC 257, our Apex Court held as under:
“13. A will like any other document is to be proved in terms of the provisions of Sec. 68 of the Evidence Act and the Succession Act, 1925. The propounder of the will is called upon to show by satisfactory evidence that the will was signed by the testator, that the testator at the relevant time was in a sound and disposing state of mind, that he understood the nature and effect of the disposition and put his signature to the document on his own free will and the document shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution. This is the mandate of Sec. 68 of the Evidence Act and the position remains the same even in a case where the opposite party does not specifically deny the execution of the document in the written statement.”
Effect of ‘Admission’ of Execution of Will (by the other side)
It may be pointed out that the Apex Court did not consider in this decision, Ramesh Verma v. Rajesh Saxena – what is the position when the opposite party expressly admit the execution of the document.
Boomathi v. Murugesan, 2023-2 Mad LJ 684 (DB)
It is held in a recent Division Bench decision in Boomathi v. Murugesan, 2023-2 Mad LJ 684, that the position will be different if the Will is ‘categorically’ and ‘clearly’ admitted. The Madras High Court referred Sec. 17 (Admission) and Sec. 58 (Facts admitted need not be proved) and came to the conclusion , Sec. 68 will not be attracted where the Will is “admitted” by the other side. The Division Bench held as under:
“23. First and foremost, it is to be borne in mind that before the Hon’ble Supreme Court in Jagdish Chand Sharma Vs. Narain Singh Saini [Dead] through Legal Representatives and Others, reported in 2015 [8] SCC 615, the validity of the Will was a core issue and the Hon’ble Supreme Court proceeded to discuss the law with regard to proof of a Will in accordance with the statute. In such context, the Hon’ble Supreme Court has held that the position with regard to proof of a Will remains the same even if the opposite party does not specifically deny execution of the same.
24. The above judgment has been followed by learned Single Judges of this Court in P. Malliga Vs. P. Kumaran reported in 2022 [2] LW 393 and Akkinirajan Vs. Maheswari and Others reported in 2023 [1] LW 72.
25. This Court draws the distinction between ‘specifically denied’, ‘not specifically denied’ and ‘admitted‘. The first two instances, namely, ‘specifically denied’ and ‘not specifically denied’, would fall within one category. Insofar as proof of a Will in both cases in this category, the Will would have to be necessarily proved by the propounder. However, where the opposite party categorically admits to the Will, the position would be certainly different. In India, we follow what is called the system ‘adversarial proceedings’, which is also followed in the British Courts. The foundation of this School is that parties before a Court would have to deal with facts in issue namely facts that are asserted and denied by the parties to the lis and the Court would proceed to adjudicate on such issues. When there is no dispute between the parties on certain matters, the Court would not venture to require proof of such admitted facts.”
“33. This Court has applied its mind to the various principles laid down by the Hon’ble Supreme Court as well as this Court and other High Courts, especially in the context of Sec. 68 of the Indian Evidence Act, proof of a Will where execution is not specifically denied and in cases where the execution is categorically admitted. The ratio laid down by the Hon’ble Supreme Court in Ramesh Verma’s case [cited supra] reported in 2017 [1] SCC 257, cannot be a precedent for the proposition where the opposite party clearly admits to the execution of the subject Will as in the instant case. Therefore, we are not in respectful agreement with the judgments in P. Malliga’s case(P. Malliga v. P. Kumaran, 2022 (2) LW 393) andAkkinirajan’s case (Akkinirajan Vs. Maheswari, 2023 [1] LW 72) following the ratio laid down by the Hon’ble Supreme Court in Jagdish Chand Sharma’s case. On the contrary, we approve the ratio laid down in P. Radha Vs. Irudayadoss and Others reported in 2022 SCC Online Mad 886 and Vanjiammal and Others Vs. Vidya and Others in the order dtd. 21/4/2017 made in CRP.[PD] No.3659/2013.”
The same view is taken in Rajeev Gupta v. Prashant Garg, 2022-1 All LJ 435. The court held as under:
“The admission were in the pleadings of the parties and therefore there was no requirement of proving the will in the present suit. Admittedly, the defendant Nos. 2 to 4/appellants have claimed their title through Ramesh Chand Garg who never disputed the validity of the will rather in the Original Suit No. 458 of 1992, he admitted its validity and therefore, the lower appellate court has rightly decreed the suit and held that the will was neither required to be proved in the present suit nor the filing of original will was necessary.”
Do General Provisions of S. 58 give way to Special Provisions of S. 68
Three views are possible:
First: Requirement of calling at lest one witness to prove those documents that requires attestation, remains the same even in a case where the opposite party expressly admit the execution of the document in the written statement.
Second: If the Will is (even impliedly) admitted, Sec. 68 need not be invoked.
Third: If only the Will is expressly admitted, then only there will be alleviation of burden laid down in Sec. 68.
In the light of the Apex Court decision in Ramesh Verma v. Rajesh Saxena, 2017-1 SCC 257, (that the position – as to proof of documents requires attestation – remains the same even in a case where the opposite party does not specifically deny the execution of the document in the written statement) it appears that the second view stated above (taken in Thayyullathil Kunhikannan v. Thayyullathil Kalliani, AIR 1990 Ker 226) is not sustainable.
But, the proposition of law in the third view above, applied in Boomathi v. Murugesan (supra), and other decisions (that the position – as to proof of documents requires attestation – will be different if the Will is “categorically admitted“), sounds good.
Authoritative Judicial Pronouncement is yet to be Arrived
It is also pertinent to note that the Kerala High Court, in Sarada v. Radhamani (supra), pointed out that the general provisions of Sect. 58 of the Evidence Act has ‘to give way to the special provisions’ of Sec. 68 of the Act; and it was remarked that there was no distinction between an ‘admitted Will’ and a ‘disputed Will’ as to the mode of proof.
It appears that the placing the doctrine of ‘specific provisions override general provisions‘ is rational; for, the following words in Sec. 68 places a ‘non-obstante clause’ –
“it shall not be used as evidence until one attesting witness at least has been called for the purpose of proving its execution”.
However, it will also be a forceful argument if one says that a section in the Evidence Act cannot be protected from certain fundamental principles of the Evidence Act which include ‘best evidence rule’, ‘admitted facts need not be proved’ etc., unless strong persuasive indications are laid down in the provision concerned. (It is also noteworthy that Sec. 68 does not proceed with a non-obstante clause.) In any event, the scheme of the Evidence Act shows that Chapter III (the beginning Chapter of Part II) which deals with “Facts Need Not be Proved”, is meant to govern the succeeding chapters including the Chapter V that deals with ‘Documentary Evidence’ wherein Sec. 68 is included.
It is also significant – Sec. 58 says that ‘Admitted facts need not be proved’; and Sec. 68 speaks as to “Proof of execution of document required by law to be attested” and that the attesting witness is called “for the purpose of proving its execution”. That is, the question of ‘proof’ under Sec. 68 does not arise if ‘execution of document’ has already been admitted by the other side.
Note: Proviso to Sec. 58 enables the court to require proof, despite the admission of the other side, if it finds proper. Proviso to Sec. 58 reads as under:
“Provided that the Court may, in its discretion, require the facts admitted to be proved otherwise than by such admissions.”
Therefore, an authoritative judicial pronouncement is yet to be arrived, taking note of various potential contentions in this regard.
If only an ‘interest’ is Created in favour of the Power Holder (Donee), then only a PoA becomes Irrevocable. It must have been to secure a proprietary interest.
Document requires Registration if ‘interest’ is created in an immovable property.
It is also pointed out – in an injunction suit, where there are necessary pleadings and appropriate issue, and the matter involved is simple and straightforward, then only the court would decide upon the issue regarding ‘title‘.
Power of Attorney: Basis in Law
It is that of the fiduciary relationship between ‘Principal & Agent’.
Chapter X of the Contract Act provides for “Agency” in general. Sections 1A and 2 of the Powers of Attorney Act, 1882 specifically deals with Powers-of-Attorney. Section 1-A of the Powers-of-Attorney Act defines power of attorney to include any instruments empowering a specified person to act for and in the name of the person executing it.
Section 2 of the owers of Attorney Act, 1882 reads as under:
“2. Execution under power of attorney—The donee of a power of attorney may, if he thinks fit, execute or do any instrument or thing in and with his own name and signature, and his own seal, where sealing is required, by the authority of the donor of the power; and every instrument and thing so executed and done, shall be as effectual in law as if it had been executed or done by the donee of the power in the name, and with the signature and seal, of the donor thereof.
This section applies to powers of attorney created by instruments executed either before or after this Act comes into force.”
In M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273, it is held as under:
“27. A power of attorney derives its basic principles from Chapter X of the Contract Act which provides for “Agency” along with Sections 1A and 2 respectively of the Powers of Attorney Act, 1882. Agency is a fiduciary relationship between two persons, where one explicitly or implicitly agrees that the other will act on their behalf to influence their legal relations with third parties, and the other similarly agrees to act in this capacity or does so based on an agreement. The relationship between the executant of a general power of attorney and the holder of the power is one of principal and agent. A principal is bound by the acts done by an agent or the contracts made by him on behalf of the principal. Likewise, power of attorney in the nature of contract of agency authorizes the holder to do acts specified by the executant, or represent the executant in dealings with third persons.”
Power of Attorney: Genesis in Contract
In Syed Abdul Khader v. Rami Reddy, (1979) 2 SCC 601, the Supreme Court held that the relation between the donor of the power and the donee of the power is one of the principal and agent having its genesis in a contract. It is held as under:
“10. The first contention of the appellant is that it was impermissible in law for three persons to jointly grant a power of attorney in favour of Defendant 34. Barring the ipse dixit of the learned counsel nothing was shown to us to make such a joint power impermissible in law. The relation between the donor of the power and the donee of the power is one of the principal and agent and the expression “agency” is used to connote the relation which exists where one person has an authority or capacity to create legal relations between a person occupying the position of principal and third parties. The relation of agency arises whenever one person called the agent has authority to act on behalf of another called the principal and consents so to act. The relationship has its genesis in a contract. If agency is the outcome of a contract between the principal and the agent, in order to show that three principals jointly constituting an agent by a deed called “Power of Attorney” was impermissible, provisions of Contract Act or the general law of contract should have been shown as having been violated by such a contract.
Nothing of the kind was pointed out to us. On the contrary, in Halsbury’s Laws of England, Vol. I, 4th Edn., para 726, the following proposition has been stated:
“Co-principals may jointly appoint an agent to act for them and in such case become jointly liable to him and may jointly issue him.” We are in agreement with this view and, therefore, three principals could jointly appoint an agent.” (Quoted in M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273)
In State of Rajasthan v. Basant Nahata, (2005) 12 SCC 77, it is observed as under:
“13. Power of attorney: A grant of power of attorney is essentially governed by Chapter X of the Contract Act. By reason of a deed of power of attorney, an agent is formally appointed to act for the principal in one transaction or a series of transactions or to manage the affairs of the principal generally conferring necessary authority upon another person. A deed of power of attorney is executed by the principal in favour of the agent. The agent derives a right to use his name and all acts, deeds and things done by him and subject to the limitations contained in the said deed, the same shall be read as if done by the donor. A power of attorney is, as is well known, a document of convenience.” (Quoted in M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273)
No Termination, If Agent has an Interest
Section 201 of the Contract Act reads as under:
201. Termination of agency– An agency is terminated
by the principal revoking his authority, or
by the agent renouncing the business of the agency; or
by the business of the agency being completed; or
by either the principal or agent dying or becoming of unsound mind; or
by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors.
Section 202 of the Contract Act reads as under:
202. Termination of agency, where agent has an interest in subject-matter— Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest.”
Illustrations given to Sec. 202 explain what is ‘interest’ in Sec. 202 [viz., (i) to pay himself, out of the proceeds, the debts due to him from A; (ii) to repay himself out of the price the amount of his own advances].
Illustrations in Sec. 202 read as under:
(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death.
(b) A consigns 1,000 bales of cotton to B, who hasmade advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death.
If only ‘INTEREST’ Created, PoA becomes Irrevocable
In M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273, it was contended that the GPA was coupled with interest, and made the agency irrevocable by virtue of Section 202 of the Contract Act; for, the PoA, read with the agreement to sell an immovable property, executed on the same day to the same person, categorically stated –
(i) the POA was executed for a consideration, and
(ii) the possession of the suit property was delivered to the holder.
Analysing Sec. 202, in the light of the illustrations, the Apex Court held as under in this case (M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273):
“35. Therefore, the essentials of Section 202 of the Contract Act are,
first, there shall be a relationship in the capacity of ‘principal and agent’ between the parties and
secondly, there shall be agent’s interest in the subject-matter of the agency.
If both the conditions are fulfilled the agency becomes irrevocable and cannot be terminated unilaterally at the behest of the principal.”
In M.S. Ananthamurthy our Apex Court also points out that Section 202 of the Contract Act is an exception to the general rule under Section 201; and that Sec. 202 prescribes – where an agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot be terminated to the prejudice of such interest unless there is an express stipulation to the contrary.
The court extracted the following from Bowstead on Agency, 14th Edition, page 423. It reads as under:
“(i) Where the authority of an agent is given by deed or for valuable consideration, for the purpose of effectuating any security, or of protecting or securing anyinterest of the agent, it is irrevocable during the subsistence of such security or interest. But it is not irrevocable merely because the agent has an interest in the exercise of it or has a special property in, or lien for advances upon, the subject matter of it, the authority not being given expressly for the purpose of securing such interest or advances;
(ii) Where a power of attorney, whenever created is expressed to be irrevocable and is given to secure a proprietary interestof the donee of the power, or the performance of an obligationowed to the donee, then, so long as the donee has that interest, or the obligation remains undischarged, the power is irrevocable;
(iii) Authority expressed by this article to be irrevocable is not determined by the death, insanity or bankruptcy of the principal, nor ……where the principal is an incorporated company, but its winding up or dissolution, and cannot be revoked by the principal without the consent of the agent.”
The Supreme Court also referred to the following decisions, in this regard –
Dalchand v. Seth Hazarimal, 1931 SCC OnLine MP 57,
Palani Vannan v. Krishnaswami Konar, 1945 SCC OnLine Mad 119,
Shri Harbans Singh v. Smt. Shanti Devi, 1977 SCC OnLine Del 102.
If Full Sale Consideration Paid, PoA Becomes Irrevocable
In Akbarbhai Kesarbhai Sipai v Mohanbhai Ambabhai Patel, 2019-3 GLH 523, it is observed (J.B. Pardiwala, J.) as under:
“Indisputably, the so called irrevocable power of attorney coupled with interest is not a registered document. I am at one with Mr. Dave that the power of attorney is in substance in the form of a sale. In the last part of the document, it is clearly stated that full sale consideration of the property is being paid to the power of attorney by the plaintiffs. There is no doubt that law does not recognize such a sale.”
A document has to be seen as a whole.
The Apex Court further pointed out that the nomenclature of the POA does not determine its nature. Even a POA termed as a ‘general power of attorney’ may confer powers that are special in relation to the subject matter. Halsbury, Vol. 1, at page 151, is quoted:
“A general agent is one who has authority, arising out of and in the ordinary course of his business or profession, to do some act or acts on behalf of his principal in relation thereto; or one who is authorised to act on behalf of the principal generally in transactions of a particular kind or incidental to a particular business.”
The Court further referred the following decisions –
Manubhai Prabhudas Patel v. Jayantilal Vadilal Shah, 2011 SCC OnLine Guj 7028. (In this case Anantha Pillai v. Ratiinasabapatiiy Mudaliar, 1968 (2) MLJ 574, quoted which said – “The general principles regarding the construction of power of attorney are well settled. Powers of attorney must be strictly construed as giving only such authority as they confer expressly or by necessary implication.)
Document requires Registration if ‘interest’ Created in immovable property
With respect to registration of the document (under the provisions of the Registration Act, 1908) , it is stated in this decision (M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273) as under:
“51. Section 17(1)(b) prescribes that any document which purports or intends to create, declare, assign, limit or extinguish any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property is compulsorily registerable. Whereas, Section 49 prescribes that the documents which are required to be registered under Section 17 will not affect any immovable property unless it has been registered.”
In this regard the Apex Court referred the following decisions –
Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana, (2012) 1 SCC 656,
Shyam Narayan Prasad v. Krishna Prasad, (2018) 7 SCC 646,
Channegowda v. N.S. Vishwanath 2023 SCC OnLine Kar 153.
Effect of Suit for Injunction Simpliciter
It was argued in this case (M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273) that the plaintiff had not challenged the validity of the GPA and the agreement. Discarding the submission it was held –
“Where the question of title is “directly and substantially” in issue in a suit for injunction, and where a finding on an issue of title is necessary for granting the injunction, with a specific issue on title raised and framed, a specific prayer for a declaration of title is not necessary…..To summarize, where a finding on title is necessary for granting an injunction and has been substantially dealt with by the Trial Court in a suit for injunction, a direct and specific prayer for a declaration of title is not a necessity.”
The Apex Court relied on Anathula Sudhakar v. P. Buchi Reddy, (2008) 4 SCC 594, which, inter alia, held as under:
“(c) But a finding on title cannot be recorded in a suit for injunction, unless there are necessary pleadings and appropriate issue regarding title (either specific, or implied as noticed in Annaimuthu Thevar [Annaimuthu Thevar v. Alagammal, (2005) 6 SCC 202] ). Where the averments regarding title are absent in a plaint and where there is no issue relating to title, the court will not investigate or examine or render a finding on a question of title, in a suit for injunction. Even where there are necessary pleadings and issue, if the matter involves complicated questions of fact and law relating to title, the court will relegate the parties to the remedy by way of comprehensive suit for declaration of title, instead of deciding the issue in a suit for mere injunction.
(d) Where there are necessary pleadings regarding title, and appropriate issue relating to title on which parties lead evidence, if the matter involved is simple and straightforward, the court may decide upon the issue regarding title, even in a suit for injunction. But such cases, are the exception to the normal rule that question of title will not be decided in suits for injunction. …”
Conclusion
M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273 is an authority for the following –
1. Sec. 202 of the Contract Act determines when a PoA becomes irrevocable. It says –
If only an ‘Interest’ is Created in favour of the Power Holder (Donee), then only a PoA becomes Irrevocable.
It is explained in the illustrations of Sec. 202. It must have been to secure a proprietary interest. The instances shown are the following –
(a) To pay (from out of the proceeds) the (prior) debts due to the power-holder (donee) from the Principal.
(b) To repay (the power-holder himself, from out of the price) the amount he hasmade as advances to the Principal.
A PoA will not be irrevocable merely for (i) it was executed for a consideration, and (ii) the possession of the suit property was delivered to the holder.
2. Document requires Registration if ‘interest’ created in immovable property.
3. Where there are necessary pleadings and appropriate issue, and the matter involved is simple and straightforward, then only the court would decide upon the issue regarding ‘title‘.
A party to a (void or voidable) document alone need to get it cancelled; other persons can ignore it.
The true owner of a property cannot seek cancellation of a deed, executed by a stranger to the property.
When the plaintiff cannot establish his title without avoiding an instrument that stands as an insurmountable obstacle, the plaintiff has to seek a declaration.
A registered deed cannot be unilaterally cancelled by its executant. The only remedy available is to invoke Sec. 31, Sp. Relief Act.
If a person is aggrieved by a deed, the remedy open for him is to seek appropriate relief in the civil Court.
Registrar is not competent to cancel the registered document.
Does the Registering Authority hold Quasi-Judicial power? No.
Does the Registrar has duty to see – document is presented in accordance with law? Yes.
Does the Registrar hold power to desist from registering a document, submitted along with the necessary documents? No.
It forms no part of a Registering Officer’s duty to enquire into the validity of a document [except documents styled as marriage agreement] brought to him for registration. (Rule 67 of the Kerala Registration Rules)
Section 31 of the Specific Relief Act provides for cancellation of deeds by the civil court. The grant of such a decree is discretionary. The court can adjudge an instrument void or voidable, partially or completely. To attract Sec. 31-
(i) The instrument in question must be a written one.
(ii) It must be a void or voidable one as against the plaintiff.
(iii) The plaintiff must have reasonable apprehension that such instrument, if left outstanding, may cause him serious injury.
When Declaration (other than Cancellation) is to be sought for
Declaration of Title – When required?
Declaration is to make clear what is doubtful.
Declaration is needed when serious denial or cloud on title(Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594: 2008 SC 2033, Jharkhand State Housing Board v. Didar Singh , (2019) 17 SCC 692 . Referred to in: Padhiyar Prahladji Chenaji vs Maniben Jagmalbhai: 2022 SCC OnLine SC 258, serious cloud: Kurella Naga Druva Vudaya Bhaskara Rao v. Galla Jani Kamma (2008) 15 SCC 150: (Quoted in Muddasani Venkata Narsaiah v. Muddasani Sarojana: AIR 2016 SC 2250: 2016-12 SCC 288).
Declaration is needed as an ‘introduction’ to grant Injunction and Recovery.
Declaration is also to tide over Insurmountable obstacle (Noorul Hoda v. Bibi Rafiunnisa, 1996 (7) SCC 767).
Injunction is granted without declaration, when plaintiff has well established title, or settled lawful possession.
No declaration is needed when title claimed by the defendant is null or void.
If a person is aggrieved by a deed, the remedy for him is to seek appropriate relief in the civil Court (Yanala Malleshwari v. Ananthula Sayamma, AIR 2007 AP 57)
No declaration is needed when a person sells away the property belonging to other, as it would certainly be fraud on the statute (Yanala Malleshwari v. Ananthula Sayamma, AIR 2007 AP 57).
No declaration is needed when – Plaintiff is not a party to the sale deed (Usman Kurikkal v. Parappur Achuthan Nair, ILR 2012-3 Ker 343; 2012 3 KHC 89)
No declaration is needed when – Document ex-facie reveals no title – specific declaration as to invalidity not necessary.
A complete stranger whose interest is in no way affected by another’s legal character is not entitled for a declaration.
When a Plaintiff can Ignore a Deed
(i) When Not a Party to the Deed (ii) Third Party Sells Property of Another
V. Kalyanaswamy v. L. Bakthavatsalam, 2020 3 RCR(Civ) 404; 2020 9 Scale 367
Also in Sankaran v. Velukutty, 1986 KLT 794
SR Suresh Babu v. Beena, 2022 KHC OnLine 196.
Yanala Malleshwari v. Ananthula Sayamma, AIR 2007 AP 57.
Unilateral Cancellation by Regd. Deed, Stands Against Sec. 31
Pavakkal Noble John v. Kerala State, 2010 (3) Ker LT 941,
Latif Estate Line India Ltd. v. Hadeeja Ammal, AIR 2011 Mad 66,
Sudhakar Reddy v. Lakshmamma, 2014 (4) ALT 404, 2011 (4) ALD 325 (DB),
Asset Reconstruction Company v. SP Velayutham (2022) 8 SCC 210.
Sudhakar Reddy v. Lakshmamma, 2014 (4) ALT 404, 2011 (4) ALD 325 (DB)
Cancellation can be equated to Rescission in Contract
A deed of cancellation amounts to rescission of contract. (In contractual matters the term recession is used to denote cancellation.) If it is viewed in the light of Section 62 of the Indian Contract Act, the cancellation (being a recession) must be done bilaterally.
Who can seek Cancellation
Section 31 makes it clear – one can seek Cancellation if –
the written instrument stands against his interest
the instrument is void or voidable (or void so far as that person is concerned)
he has a reasonable apprehension that the instrument, if left outstanding may cause serious injury to him.
Can the True Owner Seek Cancellation of a Deed, Executed by a Stranger to the Property
No.
Sect. 31 of the Specific Relief Act does notgive a right to a stranger to a document (including the true owner of the property) to sue for cancellation. That is, when an immovable property is transferred by a person without authority to a third person, the true owner cannot file a suit under Sec. 31 of the Specific Relief Act; such a suit is not maintainable. See:
Muppudathi Pillai v. Krishnaswami Pillai, AIR 1960 Mad 1
Yanala Malleshwari v. Ananthula Sayamma, AIR 2007 AP 57,
Deccan Paper Mills Co. Ltd. Versus Regency Mahavir Properties; (2021) 4 SCC 786,
Vinod Shankar Jha v. State of Jharkhand, 2024-1 CurCC 330.
The Full Bench of the Madras High Court, in Muppudathi Pillai v. Krishnaswami Pillai, AIR 1960 Mad 1, said analysing Sec. 39 of the Specific Relief Act, 1877 (pari materia provision to Sec. 31 of the 1963 Act) as follows:
“13. … The provisions of Section 39 make it clear that three conditions are requisite for the exercise of the jurisdiction to cancel an instrument :
(1) the instrument is void or voidable against the plaintiff;
(2) plaintiff may reasonably apprehend serious injury by the instrument being left outstanding;
(3) in the circumstances of the case the court considers it proper to grant this relief of preventive justice.
On the third aspect of the question the English and American authorities hold that where the document is void on its face the court would not exercise its jurisdiction while it would if it were not so apparent. In India it is a matter entirely for the discretion of the court.
14. The question that has to be considered depends on the first and second conditions set out above. As the principle is one of potential mischief, by the document remaining outstanding, it stands to reason the executant of the document should be either the plaintiff or a person who can in certain circumstances bind him. It is only then it could be said that the instrument is voidable by or void against him. The second aspect of the matter emphasises that principle. For there can be no apprehension if a mere third party asserting a hostile title creates a document. Thus relief under S. 39 would be granted only in respect of an instrument likely to affect the title of the plaintiff and not of an instrument executed by a stranger to that title.”
After quoting Muppudathi Pillai v. Krishnaswami Pillai, AIR 1960 Mad 1, it was held (R.F. Nariman, J.) in Deccan Paper Mills Co. Ltd. v. Regency Mahavir Properties, AIR 2020 SC 4047, as under:
“A reading of the aforesaid judgment of the Full Bench would make the position in law crystal clear. The expression “any person” does not include a third party, but is restricted to a party to the written instrument or any person who can bind such party….
… A reading of section 31(1) then shows that when a written instrument is adjudged void or voidable, the Court may then order it to be delivered up to the plaintiff and cancelled – in exactly the same way as a suit for rescission of a contract under section 29. Thus far, it is clear that the action under section 31(1) is strictly an action inter parties or by persons who obtained derivative title from the parties, and is thus in personam.”
In Yanala Malleshwari v. Ananthula Sayamma, AIR 2007 AP 57, it is held as under:
“36. What would be the remedy for the person who actually and factually holds a valid title to a property in respect of which a fraudulent transfer was effected by deceitful vendors and vendees or deceitful vendors and genuine vendees, who parted with consideration. The legal maxims ‘nemo dat quod non habet’ and ‘nemo plus juris ad alium transferee potest quam ipse habet’ postulate that where property is sold by a person who is not the owner and who does not sell under the authority or consent of the real owner, the buyer acquires no title to the property than the seller had. The Indian law recognizes this principle in various provisions of various statutes which in pith and substance deal with Contracts, Transfer of property and Specific relief (See Sections 17, 18, 19, 20, 23, 25 and 29 of the Contract Act; Sections 6(h), 7, 25, 38, 42 to 48, 52, 53 and 55 of TP Act and Sections 13, 15, 17, 21, 31 and 34 of the Specific Relief Act)…..
77. In the considered opinion of this Court if a person sells away the property belonging to other, it would certainly be fraud on the statute. It would be adding insult to injury, if such person is asked to go to civil Court and get the subsequent sale deed cancelled or seek a declaration. Be it also noted that under common law, as discussed supra, the title of a person remains intact even if a stranger conveys that title to another stranger, which is ineffective”
In Vinod Shankar Jha v. State of Jharkhand, 2024-1 CurCC 330, after considering all the above decisions, it is held as under:
“34. What follows from the above settled position of law, is that an executant can seek cancellation of a registered instrument on the ground of fraud, by a suit filed under Section 31 of the Specific Relief Act. In case, where a stranger without any title has executed a sale, such a suit will not lie under Section 31. Real owner may file a suit under Section 34, if his peaceful enjoyment of ownership right is impinged due to the said sale.”
When one is NOT PARTY to Document, No Need to Annul by Cancellation
It is held in Y. G. Gurukul v. Y. Subrahmanyam, AIR 1957 AP 955, as under:
“When a person is not eo-nomine a party to a suit or a document, it is unnecessary for him to have the deed or the decree annulled, and he can proceed on the assumption that there was no such document or decree. (Followed in Sankaran v. Velukutty, 1986 Ker LT 794.)
In Usman Kurikkal v. Parappur Achuthan Nair, ILR 2012-3 Ker 343; 2012 3 KHC 89, it is held as under:
“Plaintiff is neither a party to the sale deed nor a party to the resolution empowering the Board to execute the sale deed. The prayer in the plaint is essentially for a declaration that the sale deed is not valid and binding on the plaintiff. The plaintiff has not sought for a cancellation of the sale deed obviously because he was not an executant thereto. The plaintiff can very well ignore the sale deed and need not seek its annulment as has been held in Sankaran v. Velukutty (1986 KLT 794).”
See also: SR Suresh Babu v. Beena, 2022 KHC OnLine 196.
The Supreme Court observed in V. Kalyanaswamy v. L. Bakthavatsalam, 2020 3 RCR(Civ) 404; 2020 9 Scale 367, as under:
“Plaintiffs-appellants in OS No. 36 of 1963 were not parties to the suit in 1958 and the compromise in OS No. 71 of 1958 will not bind the appellants.”
Incumbent for the Executant to Seek Cancellation of Sale Deeds
It is held in Chellakannu v. Kolanji (R. Banumathi, J.), AIR 2005 Mad 405, that the word “Cancellation” implies that the persons suing should be a party to the document; and that it is incumbent on the executant of the document (for avoiding its binding nature) to seek cancellation of sale deeds, and a prayer to declare the sale deeds as invalid tantamount to cancellation; and therefore, court fee applicable to cancellation has to be paid. Our Apex Court approved this decision (Chellakannu v. Kolanji) in J. Vasanthi v. N. Ramani Kanthammal, AIR 2017 SC 3813.
Cancellation of alienations in Partition Suits
In Umadevi Nambiar v. Thamarasseri Roman Catholic Diocese, AIR 2022 SC 1640; 2022-7 SCC 90, it is held that in Partition of property, it is not always necessary for a plaintiff in a suit for partition to seek cancellation of alienations.
Propositions as to Questioning a DeedWHERE ONE is NOT a Party
In Noorul Hoda v. Bibi Rafiunnisa, 1996 (7) SCC 767, our Apex Court held as follows:
“When the plaintiff seeks to establish his title to the property which cannot be established without avoiding the decree or an instrument that stands as an insurmountable obstacle in his way which otherwise binds him, though not a party, the plaintiff necessarily has to seek a declaration and have that decree, instrument or contract cancelled or set aside or rescinded.”
In Chellakannuv. Kolanji (R. Banumathi, J.), AIR 2005 Mad 405, it is observed as under:
“12. The word “Cancellation” implies that the persons suing should be a party to the document. Strangers are not bound by the documents and are not obliged to sue for cancellation. When the party to the document is suing, challenging the document, he must first obtain cancellation before getting any further relief. Whether cancellation is prayed for or not or even it is impliedly sought for in substance, the suit is one for cancellation. In the present case, when the Plaintiff attacks the Sale Deeds as having been obtained from him under fraud and mis-representation the Plaintiff cannot seek for any further relief without setting aside the Sale Deeds.
Where one person is not a party to a deed, following propositions can be laid down:
Where a deed is ‘null and wholly void‘ (e.g., unregistered sale/gift), he can simply avoid the deed and advance with other reliefs.
Limitation statute will have no application in such cases.
If it is not ‘null and wholly void‘, he cannot simply avoid the deed and advance with other reliefs.
But, in such cases, it is not mandatory to seek ‘annulment’ of the deed – by ‘setting it aside’ or ‘cancelling it’.
It will be sufficient – to resort to “appropriate proceeding”, for avoiding the same, before a court of law, seeking proper declaration or otherwise.
It must be done within the limitation period prescribed.
In such cases the plaintiff need not pay Court Fee for ‘cancellation’ of a deed; it will be sufficient to pay the fee for ‘declaration’.
Partial or Complete Cancellation
In a proper case it may be possible to cancel a part of the document. But, if it is an indivisible agreement such bifurcation is not possible. It is held in Laxmanlal K. Pandit v. Mulshankar Pitambardas, (1908) 10 BomLR 553 7, as under:
“Finally, it was urged that even if part of the consideration for the rent note failed, yet part of it should be held not to fail, and to the extent of the part held good relief should be allowed to the plaintiff in this suit. It is, however, clear to us that the agreement was an indivisible agreement. Part of a single consideration for one object was unlawful, and therefore the whole agreement is void under Section 24 of the Contract Act. As was said by Mr. Justice Chitty in Baker v. Hedgecock (1888) 39 Ch. D. 520 it is not possible for the Court to “create or carve out a new covenant for the sake of validating an instrument which would otherwise be void.” The suit is a suit for rent, and is based upon a rent note which is void.”
PART II
Unilateral Cancellation of Title Deeds
Abstract
A registered deed cannot be unilaterally cancelled by its executant. The only remedy available is to invoke Sec. 31, Sp. Relief Act.
Latif Estate Line India Ltd. v. Hadeeja Ammal, AIR 2011 Mad 66 (FB),
Sudhakar Reddy v. Lakshmamma, 2014 (4) ALT 404, 2011 (4) ALD 325 (DB),
KV Sudha Rani v. Vijayawada, Guntu, Tenali, 2008(4) ALD 545,
Hayagreeva Farms and Developers, Visakhapatnam, v. Govt. of AP, 2014 (3) ALT 3 : 2014 (2) ALD 250
If a person is aggrieved by a cancellation deed, the remedy open for him is to seek appropriate relief in the civil Court.
Yanala Malleswari v. Ananthula Sayamma, 2006 (6) ALT 523: 2007 (1) CTC 97.
Registrar is not competent to cancel the registered document.
Does the Registering Authority hold a Quasi-Judicial power?
No. (See: Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767. (Approved in Park View Enterprises v. State Government of Tamil Nadu, AIR 1990 Mad 251.)
Does the Registrar hold power to desist from registering a document, submitted along with the necessary documents?
No. (See: Madras High Court – D. Sachidhanandam v. The Registrar/ Inspector General – 2022, April)
Does the Registrar has duty to ensure – Document is presented in accordance with law?
Yes. (See: Asset Reconstruction Company v. SP Velayutham, 2022-8 SCC 210.)
Person aggrieved by a deed has to seek relief in Civil Court
Full Bench of Andhra High Court, in Yanala Malleswari v. Ananthula Sayamma, 2006 (6) ALT 523: 2007 (1) CTC 97, held that an if a person is aggrieved by a deed, the remedy for hism is to seek appropriate relief in the civil Court. It was observed as under:
“26. It is a misconception that in every situation, a person who suffers injury by reason of a document can file a suit for cancellation of such written instrument. Two conditions must exist before one invokes Section 31 of Specific Relief Act. These are: the written instrument is void or voidable against such person; and such person must have reasonable apprehension that such instrument if left outstanding may cause him serious injury.
Insofar as Section 34 of the Specific Relief Act is concerned, it is no doubt true that a person entitled to any right as to any property can seek declaration that he is so entitled to such right. Here again, the person who claims the right to property can institute a declaration suit only when the defendant denies or interested to deny the title of the plaintiff.
The difference between the two situations is glaring. In one case, cancellation of deed can be sought in a Court only by a person who executed document and who perceives that such document is void or voidable. In the other case, even if a person is not a party to the document, he can maintain a suit for declaration.”
It was also observed as to questioning a cancellation deed as under:
“We, therefore, hold that whenever a person is aggrieved by a cancellation deed, the remedy is to seek appropriate relief in the civil Court and writ petition is not proper remedy.”
Unilateral Cancellation by Regd. Deed, Stands Against Sec. 31
Pavakkal Noble John v. Kerala State, 2010 (3) Ker LT 941,
Latif Estate Line India Ltd. v. Hadeeja Ammal, AIR 2011 Mad 66,
Sudhakar Reddy v. Lakshmamma, 2014 (4) ALT 404, 2011 (4) ALD 325 (DB),
Asset Reconstruction Company v. SP Velayutham (2022) 8 SCC 210.
In Sudhakar Reddy v. Lakshmamma, 2014 (4) ALT 404, 2011 (4) ALD 325 (DB), the High Court after quoting the aforesaid passage from Yanala Malleswari v. Ananthula Sayamma, it was held as under:
“15. In view of the principle enunciated in the case cited supra, the finding of the trial Court that the Ex.B1 gift deed executed in favour of the defendant was cancelled is not sustainable. The only remedy available to the donor is to file a suit for cancellation of Ex.B1 gift deed, as provided Section 31 of the Specific Relief Act.”
In Sudhakara Reddy v. Lakshmamma, (supra), the High Court found fault with the lower courts for framing an issue so as to embrace a declaration. The High Court held as under:
“The plaintiff filed the suit seeking injunction simplicitor. In such circumstances, the trial Court ought not to have framed the issue, which is in the nature of a declaration. The trial Court decreed the suit basing on oral evidence of PWs.1 to 3 and also on a wrong premise that Ex.B.1 gift deed was cancelled by late Gowramma, during her life time.”
The Andhra High Court held in KV Sudha Rani v. Vijayawada, Guntu, Tenali, Mangalagiri UDA, 2008(4) ALD 545, on an analysis of the provisions of the Transfer of Property Act, 1882, and the Registration Act, 1908, that when once the sale deed is executed, the title in the property passes to the purchaser forthwith. The person who seeks cancellation of the registered document has two remedies available to him under law, namely (1) to seek invalidation under Section 31 of the Specific Relief Act, and (2) to seek cancellation following rule 26(k)(i) of the Rules framed by the State of Andhra Pradesh.
Note: Similar provision that of rule 26(k)(i) of the AP Rules is not in all other States.
It was further held that except those two remedies, no person or authority has the right to unilaterally invalidate a registered document on any ground. (Followed in: Hayagreeva Farms and Developers, Visakhapatnam, v. Govt. of AP, 2014 (3) ALT 3 : 2014 (2) ALD 250.)
Unilateral Cancellation of a Sale Deed Bad in Law
Unilateral cancellation of a deed of sale is bad (Full Bench in Latif Estate Line India Ltd. v. Hadeeja Ammal, AIR 2011 Mad 66; Latif Estate Line India Ltd. Vs Hadeeja Ammal, AIR 2011 Mad 66; KV Sudha Rani v. Vijayawada, Guntu, Tenali, Mangalagiri UDA, 2008(4) ALD 545). Such a cancellation deed cannot be accepted for registration.
Our Apex Court analysed the Madras decision in Latif Estate Line India Ltd. v. Hadeeja Ammal, in the following words in Asset Reconstruction Company v. SP Velayutham (2022) 8 SCC 210:
“41. The Full Bench decision of the Madras High Court in Latif Estate Line India Ltd. Vs Hadeeja Ammal, AIR 2011 Mad 66, arose out of a controversy as to whether a deed of cancellation of sale can or cannot be accepted for registration. The Full Bench explained the circumstances under which a deed of cancellation, presented by both the vendor and the purchaser, can be accepted. But the Full Bench categorically held that a deed of unilateral cancellation cannot even be accepted for registration.
This proposition actually goes in support of the contention of the appellant that the Registering Officer has a duty to see whether the document presented for registration has been presented in accordance with law or not. In fact the decision of the Full Bench itself arose out of a writ petition challenging the act of the Registering Authority in allowing the registration of the deeds of unilateral cancellation of sale deeds.”
Cancellation of a deed on the Ground, ‘Fraud’
Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767, is an authority on the following mayyers:
Some irregularity, by itself, cannot result in a fraudulent action of the State Authority;
Allegations relating to ‘fraud’ are questions of fact which must be pleaded and proved.
An aggrieved person by registration of a (fraudulent) document is free to challenge its validity before the civil court.
It is held as under:
“36. If the document is required to be compulsorily registered, but while doing so some irregularity creeps in, that, by itself, cannot result in a fraudulent action of the State Authority. Non-presence of the other party to the extinguishment deed presented by the Society before the Registering Officer by no standard can be said to be a fraudulent action per se. The fact whether that was done deceitfully to cause loss and harm to the other party to the deed, is a question of fact which must be pleaded and proved by the party making such allegation. That fact cannot be presumed. Suffice it to observe that since the provisions in the 1908 Act enables the Registering Officer to register the documents presented for registration by one party and execution thereof to be admitted or denied by the other party thereafter, it is unfathomable as to how the registration of the document by following procedure specified in the 1908 Act can be said to be fraudulent. As aforementioned, some irregularity in the procedure committed during the registration process would not lead to a fraudulent execution and registration of the document, but a case of mere irregularity. In either case, the party aggrieved by such registration of document is free to challenge its validity before the civil court.”
Pleadings on Cancellation of a deed on the Ground, ‘Fraud’
The Supreme Court held in CS Ramaswamy v. VK Senthil, 2022 SCC OnLine SC 1330, as under:
“7.8 Even the averments and allegations in the plaint with respect to fraud are not supported by any further averments and allegations how the fraud has been committed/played. Mere stating in the plaint that a fraud has been played is not enough and the allegations of fraud must be specifically averred in the plaint, otherwise merely by using the word “fraud”, the plaintiffs would try to get the suits within the limitation, which otherwise may be barred by limitation. Therefore, even if the submission on behalf of the respondents – original plaintiffs that only the averments and allegations in the plaints are required to be considered at the time of deciding the application under Order VII Rule 11 CPC is accepted, in that case also by such vague allegations with respect to the date of knowledge, the plaintiffs cannot be permitted to challenge the documents after a period of 10 years. By such a clever drafting and using the word “fraud”, the plaintiffs have tried to bring the suits within the period of limitation invoking Section 17 of the limitation Act. The plaintiffs cannot be permitted to bring the suits within the period of limitation by clever drafting, which otherwise is barred by limitation.”
Cancellation of a Regd. deed on Ground, ‘Undue Influence’– Presumption
In Bellachi v. Pakeeran (2009) 12 SCC 95, our Apex Court held as under:
“15. Section 16 of the Indian Contract Act provides for as to what constitutes undue influence. Relationship between the parties so as to enable one of them to dominate the will of the other is a sine qua non for constitution of undue influence …..
16. In a given case it is possible to hold that when an illiterate, pardanashin woman executes a deed of sale, the burden would be on the vendee to prove that it was the deed of sale was a genuine document. It is, however, a registered document. It carries with it a presumption that it was executed in accordance with law. Again a concurrent finding of fact has been arrived at that she was not an illiterate woman or she was incapable of understanding as to what she had done.”
The Apex Court quoted the following from Afsar Sheikh v. Soleman Bibi, 1976 (2) SCC 142-:
“4. In his written statement, Afsar defendant denied the allegations of fraud and misrepresentation. He averred that his grandmother was the sister of the plaintiff’s mother. The defendant’s father died when he was an infant. The plaintiff brought him up as a son. Since his very infancy, the defendant has been living with the plaintiff, managing his affairs and treating him as his father. The defendant further stated that the plaintiff has transferred 10 to 12 bighas of land to his natural son and an equal area to his second wife. Out of love and affection, the plaintiff conferred a similar benefit on the defendant and voluntarily executed the hiba-bil-ewaz after receiving from the donee a dhoti as a symbolic consideration therefor. He denied that the plaintiff at the time of the gift was too old and infirm. According to him, the plaintiff was not more than 75 years of age. He further averred that he was in possession of the suit lands ever since the execution of the hiba.”
“20. It is well-settled that a question whether a person was in a position to dominate the will of another and procured a certain deed by undue influence, is a question of fact, and a finding thereon is a finding of fact, and if arrived at fairly, in accordance with the procedure prescribed. is not liable to be reopened in second appeal (Satgur Prasad v. Har Narain Das; Ladli Prasad Jaiswal v. Karnal Distillery Co. Ltd. ).”
Bellachi v. Pakeeran (2009) 12 SCC 95 is referred to in: Keshav v. Gian Chand, AIR 2022 SC 678.
Does Registering Authority hold a Quasi-Judicial power?
No. (Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767.)
In the authoritative pronouncement in Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767, our Apex Court held in para 41 as under:
“Section 35 of the Act does not confer a quasi-judicial power on the Registering Authority.
The Registering Officer is expected to reassure that the document to be registered is accompanied by supporting documents.
He is not expected to evaluate the title or irregularity in the document as such.
The examination to be done by him is incidental, to ascertain that there is no violation of provisions of the Act of 1908.
In the case of Park View Enterprises (Park View Enterprises v. State Government of Tamil Nadu, AIR 1990 Mad 251) it has been observed that the function of the Registering Officer is purely administrative and not quasi-judicial. He cannot decide as to whether a document presented for registration is executed by person having title, as mentioned in the instrument. We agree with that exposition.”
In Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767, the Apex Court did not consider whether the executants of a deed can ‘unilaterally cancel’ it. It was held-
“It is open to the appellant to contend in those (civil court) proceedings that the Extinguishment Deed could not have been unilaterally executed by the Society.”
Does Registrar has duty to see – Document presented in accordance with law?
Yes. (Asset Reconstruction Co. v. SP Velayutham,2022-8 SCC 210.)
In Asset Reconstruction Company v. SP Velayutham (2022) 8 SCC 210, the Supreme Court made the following observation as to Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767.
42. … The decision in Satya Pal Anand v. State of Madhya Pradesh, (2016) 10 SCC 767, arose out a case where the allotment of a plot made by a cooperative society was cancelled unilaterally by a deed of extinguishment, by the society. The allottee raised a dispute which ended in a compromise but notwithstanding the compromise the allottee raised a dispute under the relevant provisions of the Madhya Pradesh Cooperative Societies Act, 1960. When the dispute was pending, the allottee moved the Registering Officer for the cancellation of the deed of transfer executed in favour of the subsequent purchasers. When the Registering Authority refused to comply with the demand, a writ petition was moved seeking a declaration that the deed of extinguishment and the subsequent sales were null and void. The High Court dismissed the writ petition on the ground that a dispute was already pending before the competent authority under the Cooperative Societies Act. When the order of dismissal passed by the High Court was challenged before this Court, there was a difference of opinion as to whether the issue was directly covered by the decision of this Court in Thota Ganga Laxmi and Another v. Government of Andhra Pradesh and Others, (2010) 15 SCC 206 . Therefore, the matter was placed before a three Judge Bench. While upholding the decision of the High Court, the three member Bench held in Satya Pal Anand (supra) that there was no rule in the State of Madhya Pradesh similar to Rule 26(k)(i) of the Rules issued by the State of Andhra Pradeshunder Section 69 of the Registration Act, 1908 and that therefore the decision in Thota Ganga Laxmi (supra) cannot be invoked.
43. The decision in Satya Pal Anand (supra) cannot go to the rescue of the contesting respondents, for the simple reason that the writ petitioner in that case, first accepted a compromise and then raised a dispute under the Cooperative Societies Act (which is akin to a civil suit) and thereafter approached the High Court under Article 226 for a declaration, which he could have sought only in the already instituted proceedings. The very fact that Thota Ganga Laxmi was sought to be distinguished on the basis of the express provision contained in the Rules of the State of A.P., would indicate that there is no absolute bar for the High Court to exercise jurisdiction under Article 226.”
Asset Reconstruction Company v. SP Velayutham, (2022) 8 SCC 210
It was a case concerning Government properties. The sale deed came for consideration in the case was executed by a Power of Attorney. The Apex Court said as to the PoA as under:
“35. Apart from the fact that clause 7 extracted above expressly prohibited the power to encumber, there was also no stipulation authorising S.P. Velayutham to appear before any Registering Officer for the purpose of sale, as an agent.”
The Apex Court upheld the authority of the Sub Registrar observing the following-
“46. But we are not concerned in this case with the question whether the PoA relied upon by the power agent S.P. Velayutham in the sale deed executed by him, required authentication and whether the Registering Authority committed a blunder in accepting the sale deed presented by him for registration, without verifying the authentication of the PoA or not. We are concerned in this case with the most fundamental question whether the Registering Authority could have turned a blind eye to the fact that the deed of PoA on the basis of which the sale deed was executed as well as presented for registration by S.P. Velayutham contained an express prohibition for the power agent to create an encumbrance on the property, especially in the light of the Rules framed under section 69 of the Act. The decision in Thota Ganga Laxmi, was in a way approved by a 3 member Bench in Satya Pal Anand, on the basis of the rules in the State of Andhra Pradesh, showing thereby that statutory rules also play a crucial role. Rajni Tandon is not an authority for holding that the registering Authority has no duty even to verify the presence or absence of a power of sale in the deed of PoA, especially in the light of the rules.”
Finally allowing the appeal the Supreme Court held as under:
“58. … If the Registering Officer under the Act is construed as performing only a mechanical role without any independent mind of his own, then even Government properties may be sold and the documents registered by unscrupulous persons driving the parties to go to civil court. Such an interpretation may not advance the cause of justice.”
Presumption on Registered Document
It is held in Prem Singh v. Birbal, (2006) 5 SCC 353, that there is a presumption that a registered document is validly executed.
Court Proceeding Essential for Determining Registration Vitiated
It is pointed out in Vinod Shankar Jha v. State of Jharkhand, 2024-1 CurCC 330, that the complex questions of title of the executant, can only be adjudicated in a civil suit; and that in cases where title of an executant of a deed is disputed, based on genealogy or a right of inheritance, cannot be decided by a Registrar. It is also observed as under:
“Under Section 48 of the Registration Act, title passes in a property on the registration of the deed of conveyance witnessing the transfer. Annulment of the registration therefore, will entail legal consequences affecting the title which had passed on its registration. Whether such a registration was valid or was vitiated by fraud is a triable issue which can be determined only in a civil or criminal proceeding by a Court of competent jurisdiction.”
Power of Registrar to Cancel a Deed – Not quasi judicial but Administrative
It is held in Satya Pal Anand v. State of M.P., (2016) 10 SCC 767, as under:
“There is no express provision in the 1908 Act which empowers the Registrar to recall such registration. The fact whether the document was properly presented for registration cannot be reopened by the Registrar after its registration. The power to cancel the registration is a substantive matter. In absence of any express provision in that behalf, it is not open to assume that the Sub-Registrar (Registration) would be competent to cancel the registration of the documents in question. Similarly, the power of the Inspector General is limited to do superintendence of Registration Offices and make rules in that behalf. Even the Inspector General has no power to cancel the registration of any document which has already been registered”. (Quoted to in: Vinod Shankar Jha v. State of Jharkhand, 2024 1 CurCC 330.)
It is observed in Vinod Shankar Jha v. State of Jharkhand, 2024-1 CurCC 330, as under:
There cannot be two views that existing provisions of the Registration Act, do not confer the Registrar with power to cancel a document which has been already registered. Even in cases of fraud or forgery, Registration Act, does not confer such a power on the Registrar to cancel a registered instrument. Under the scheme of the Registration Act, 1908, Registrar has a power to refuse the registration of deed under different provisions of the Act, but does not extend to cancellation of it. Scope of scrutiny by the registering authority, is confined to the pre-registration stage and not after the document is executed and registered.
But, the TN Government being found that the then existing provisions of the Registration Act failed to curb fraudulent registrations, powers were conferred on the Registrar, by an executive order, to cancel such deeds. The Tamil Nadu circular was challenged before the High Court and in Ramasamy v. State of Tamil Nadu, 2014 (4) CTC 627, wherein the Madras High Court (Madurai Bench) upheld that Circular held that power of cancellation is not quasi-judicial in nature but administrative and the procedure for registration as laid down under Section 68 of the Registration Act mandates the registration that he will perform read with Section 34 of the said Act, that the Registering Officer shall enquire whether or not such document was executed by the persons by whom in purported to have been executed by satisfying himself to be identity of the person executing the same. (Referred to in: Vinod Shankar Jha v. State of Jharkhand, 2024 1 CurCC 330.)
The Court in Ramasamy v. State of Tamil Nadu, 2014 (4) CTC 627, relied the Supreme Court decision in Indian Bank v. Satyam Fibers (India) Pvt. Ltd., (1996) 5 SCC 550, wherein it has been held that fraud which vitiates the entire proceeding and he can very well recall or rescinded the order on being satisfied after due enquiry that a particular document was registered after playing fraud under the inherent power of Court under Section 21 of the General Classes Act.
Unilateral Cancellation of SETTLEMENT DEED When there was No Reservation
In Pavakkal Noble John v. Kerala State, 2010 (3) Ker LT 941 (upheld in Santhosh Antonio S. Netto v. Joshy Thomas, 2020-3 Ker LT 408), the Kerala High Court pointed out that the Registrar must refuse to register the cancellation of sale deed executed unilaterally.
In Sreedevi v. The Inspector General of Registration (January, 2020, Kerala High Court), it was found that there was no reservation in the settlement deed for cancellation by the executant unilaterally. Then it was pointed out as under:
“In such circumstances, the registration of cancellation deed is illegal. Once the subject matter of the settlement deed is conveyed to the donee, the donee becomes the absolute owner. The cancellation of a registered deed executed unilaterally will create impediment in the enjoyment of the property. No doubt, the executant of such deed is having a remedy under the Specific Relief Act to cancel such deed before the Civil Court. But they cannot execute a cancellation deed and cancel the settlement deed executed in favour of the donee.”
The Kerala High Court repeated the above view in SR Suresh Babu v. Beena, 2022 KHC OnLine 196, as regards a settlement deed, in the following words:
“In the absence of any right for revocation of the deed in the deed itself, unilateral execution of the cancellation deed according to us is bad in law and is legally unsustainable.”
Cancellation of SETTLEMENT DEED – Cannot be Challenged by Writ Petition
In the decision of the Madras High Court in D. Sachidhanandam v. The Registrar/ Inspector General (2022, April), a settlement deed was cancelled by the settleor by a registered cancellation deed. It was challenged by the settlee in a writ petition. Dismissing the writ petition the High Court held as under:
“The registering authority has no power to desist from registering a document, once it is submitted to him along with the necessary documents, which are mandated under the Act and once the document is properly registered, the registering authority, in the absence of any express provision under the Act or the Rules, is not competent to cancel the registered document.
The writ petitions, at the instance of the petitioners are wholly misconceived and the writ jurisdiction cannot be invoked seeking cancellation of the respective cancellation deeds and this Court, sitting under Article 226 of the Constitution, cannot issue a writ directing the registering authority to cancel the registered document, when it involves disputed questions of fact between the parties. Further, the remedy open to the petitioners/aggrieved party is only to file a civil suit before the appropriate jurisdictional court and a writ petition is not maintainable.”
See also: Gunmala Jain v. GNCT of Delhi, 2021 SCC OnLine Del 5484.
Cancellation of TRUST DEED – Cannot be Challenged by Writ Petition
In CK Saseendran v. Inspector General of Registration, 2021-6 Ker LT 382, one cancel-deed was registered, cancelling a trust deed. The reason for revoking the trust deed stated in the cancellation deed was that the general body of the Association did not ratify the registration of the trust deed and the general body resolved to cancel the trust deed. The legality of the cancellation deed and its registration was challenged in the Writ Petition.
Registering Officer cannot enquire about the legal validity of a document
The High Court (in CK Saseendran v. Inspector General of Registration, 2021-6 Ker LT 382) accepted the contention of the Respondents that (i) the Registering Officer cannot enquire about the legal validity of a document (as per Rule 67 of the Kerala Registration Rules, 1958), and (ii) that the Registering Officer can refuse a document only under Rule 191 (read with Rule 67); and that none of such heads/ conditions existed to refuse registration of the cancellation deed.
Rule 67 of the Kerala Registration Rules
Rule 67- It forms no part of a Registering Officer’s duty to enquire into the validity of a document [except documents styled as marriage agreement] brought to him for registration or to attend any written or verbal protest against the registration of a document based on the ground that the executing party had no right to execute the document; but he is bound to consider objections raised on any of the grounds stated below—
(a) That the parties appearing or about to appear before him are not the persons they profess to be; (b) That the document is forged; (c) That the person appearing as a representative, assign or agent, has no right to appear in that capacity; (d) That the executing party is not really dead, as alleged by the party applying for registration; or (e) That the executing party is minor or an idiot or a lunatic.
Pavakkal Noble John v. Kerala State, 2010 3 Ker LT 941 (upheld in Santhosh Antonio S. Netto v. Joshy Thomas, 2020-3 Ker LT 408), was distinguished pointing out that it was a case of cancellation of (i) a saledeed (ii) unilaterally executed without the knowledge and consent of the other parties and without complying with Section 32A of the Registration Act, 1908. The writ petition, CK Saseendran v. Inspector General, was dismissed ‘without prejudice to the petitioners’ right, if any, to take recourse to any legal remedies as may be available in law’.
It Is Logically Impossible For A Person Not A Party To Ask For Its Cancellation
It is said in Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, as under:
“33. In fact, it is logically impossible for a person who is not a party to a document or to a decree to ask for its cancellation. This is clearly explained by Wadsworth, J., in the decision rendered in Vellayya Konar v. Ramaswami, 1939 SCC OnLine Mad 149, (1939) 2 MLJ 400, AIR 1939 Mad 894, thus:
“When, the plaintiff seeks to establish a title in himself and cannot establish that title without removing an insuperable obstruction such as a decree to which he has been a party or a deed to which he has been a party, then quite clearly he must get that decree or deed cancelled or declared void ‘in toto’, and his suit is in substance a suit for the cancellation of the decree or deed even though it be framed as a suit for declaration. But when he is seeking to establish a title and finds himself threatened by a decree or a transaction between third parties, he Is not in a position to get that decree or that deed cancelled ‘in toto’. That is a thing which can only be done by parties to the decree or deed or their representatives. His proper remedy, therefore in order to clear the way with a view to establish his title, is to get a declaration that the decree or deed is invalid so far as he himself is concerned and he must therefore sue for such a declaration and not for the cancellation of the decree or deed.”
34. Therefore, filing a suit for cancellation of a sale deed and seeking a declaration that a particular document is inoperative as against the plaintiff are two distinct, separate suits. The plaintiff in the present case, not being the executant of the sale deed dated 05.05.1997 executed in favour of the respondent no. 1, was therefore, not obligated to sue for its cancellation under Section 31 of the Act, 1963. The question that remains is whether the plaintiff ought to have sought for a declaration that the sale deed dated 05.05.1997 was inoperative in so far as he is concerned or is not binding on him.”
Declaration Of Title Is As Good As A Relief Of Cancellation Of The Sale Deed
In Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, it is held further as under:
“36. Therefore, the High Court having concurred with the Courts below on the legality and validity of the Gift Deed should not have dismissed the suit only on the ground that the plaintiff failed to pray for cancellation of the sale deed. The High Court should have kept the settled position of law in mind that the declaration of title is as good as a relief of cancellation of the sale deed or at least, a declaration that the sale deed is not binding on the plaintiff being void and thus non est.”
Proper Reliefs Can Be Granted, Though Not Directly Or Specifically Claimed
In Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, it is held further as under:
“37. Furthermore, it is a well-known and settled principle of law that the plaint must be read as a whole and the actual relief sought can also be culled out from the averments of the plaint. Those reliefs can be granted, if there is evidence and circumstances justifying the grant of such relief, though not directly or specifically claimed, or asked as a relief. The plaintiff had averred in his plaint that the original defendant nos. 1 to 6 had no title or saleable rights over the suit property. This reflects the intention of the plaintiff to not be bound by any instrument which they may have executed in favour of another party.
38. Courts have ample inherent powers and indeed it is their duty to shape their declaration in such a way that they may operate to afford the relief which the justice of the case requires. Section 34 of the Act, 1963 is not exhaustive of the cases in which a declaratory decree may be made and the courts have power to grant such a decree independently of the requirements of the Section. Section 34 merely gives statutory recognition to a well-recognised type of declaratory relief and subjects it to a limitation, but it cannot be deemed to exhaust every kind of declaratory relief or to circumscribe the jurisdiction of courts to give declarations of right in appropriate cases falling outside Section 34. The circumstances in which a declaratory decree under Section 34 should be awarded is a matter of discretion depending upon the facts of each case. [See: Supreme General Films Exchange Ltd. v. His Highness Maharaja Sir Brijnath Singhji Deo of Maihar and Ors., reported in (1975) 2 SCC 530]”
End Notes: 1
Sec.31 of the Specific Relief Act
Sec.31 of the Specific Relief Act reads as under:
When cancellation may be ordered- (1) Any person against whom a written instrument if void or voidable and who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury, may sue to have it adjudged void or voidable and the Court may, in its discretion, so adjudge it and order it to be delivered up and cancelled.
(2) If the instrument has been registered under the Indian Registration Act, 1908 (16 of 1908), the Court shall also send a copy of its decree to the officer in whose office the instrument has been so registered and such officer shall note on the copy of the instrument contained in his books the fact of its cancellation.
Illustrations
(a) A, the owner of a ship, by fraudulently representing her to be seaworthy induces B an underwriter, to insure her. B may obtain the cancellation of the policy.
(b) A conveys land to B who bequeaths it to C and dies. Thereupon D gets possession of the land and produces a forged instrument stating that the conveyance was made to B in trust for him C may obtain the cancellation of the forged instrument.
(c) A, representing that the tenants of his land were all at Will, sells it to B and conveys it to him by an instrument, dated the 1st January, 1877 soon, after that day. A fraudulently grants to C a lease of part of the lands, dated the 1st October, 1876 and procures the land to be registered under the Indian Registration Act. B may obtain the cancellation of this lease.
(d) A agrees to sell and deliver a ship to B, to be paid for by D’s acceptance of four bills of exchange, for sums accounting to Rs. 30,000 to be drawn by A or B. The bill are drawn and accepted, but the ship is not delivered according to the agreement. A sues B on one of the Bills. B may obtain the cancellation of all the bills.
End Notes: 2
Section 62, Contract Act reads as under:
62. Effect of novation, rescission, and alteration of contract – If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract, need not be performed.
End Notes: 3
Sec. 39, Contract Act says as to ‘putting an end’ to the contract. It reads as under:
39. Effect of refusal of party to perform promise wholly – When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.
Revenue Settlement Registers of Travancore in 1910, Basic Record of Land Matters
The Kerala High Court held in Mohandas v. Santhakumari Amma, 2018-3 KLT 606 as under:
“We notice that, a new survey and settlement was undertaken in the erstwhile Travancore State for the purpose of putting in place a sound Revenue administration. Accordingly, it appears that a complete survey and reassessment of the entire State ’embracing an accurate measurement, demarcation, mapping and valuation of properties of every description and a registration of titles, as the basis of a sound Revenue Administration’ was carried out. On the basis of such a statement a proclamation was issued by the Maharaja of Travancore on 14th Kumbhom 1061 corresponding to 24th February 1886.”
If Settlement Register says Government Land, Petitioner to Establish Title
In Vallikunnil Janaki Amma v. Sree Amruthamangalam Kshethram Moorthi, Kozhikode, 2014-1 KHC 57; 2014-1 KLJ 367; 2014-1 KLT (SN) 26, Kerala High Court, held as under:
“18. Even though Ext. A2 is only an extract of the Settlement Register/ Adangal extract which may not by itself prove or confer title to a party in whose name the property stood registered, it can be accepted as evidence of title when there is no contra evidence. Admittedly it is adjacent to Amruthamangalam temple. The temple compound and this suit property which is adjacent to the temple are shown to be of Amruthamangalam Devaswom as per revenue record. In these circumstances, the contention that this property did not and does not belong to the temple/Devaswom cannot be sustained at all.”
“20. Therefore, though the entries in the Settlement Registeror patta granted are not by themselves document of title, in the absence of any other documents showing better title, the entries in the Settlement Register can be relied upon to uphold the title set up in this case. The same is the view taken by this Court in Narayanan Nambiar v. Raman Chettiar, 1969 KLT 449.
Relying on these decisions, it was held by a Division Bench of this Court in Kunhettan Raja v. Kutty Anujan Thampuran, (RFA 120/1991 D/d. 6.10.2003) :
“The learned counsel for the plaintiffs has argued that Adangal is a reliable record. The learned counsel invited our attention to page 130 of the book by name Land Systems in British India written by B.H. Baden-Powell,volume No. III, wherein the value of Settlement Register is stated. It is stated that under Ryotwari system every registered holder of the land is recognised as its proprietor. The importance of Settlement Register was considered by P.R. Sundara Aiyar in the book Malabar & Alyasanthan Law, 1922 Edition. In paragraphs 172, 173 and 174 at pages 284 to 288 the method of preparation of Settlement Register is referred. It is to be noted that the Re-survey Settlement was effected between 1932 and 1934 and this book was written long prior to that period in the year 1922. At page 287 of the book, the author had referred to a decision of the Madras High Court in A.S.284 of 1898, in which it was held that these documents can be admitted in evidence in proof of possession and these accounts may be admitted as evidence of title under Section 13 of the Evidence Act. The learned author had referred to Madras Land Registration Act (Act 3 of 1896). This enactment deals with the preparation of Settlement Registers. It shows that before preparing the Settlement Register, an enquiry was conducted by the collector and the persons, whose name is entered in the register, shall be deemed to be proprietors subject to the right of other persons interested to challenge that entry”.
(Referred to in: Kunhimangalam Devaswam v. State of Kerala (2022 KHC OnLine 7354), 6 April, 2022, Anil K. Narendran, J. and Chitharanjan v. State of Kerala, WP(C) No, 25830/2010,24.01. 2025, Harisankar V. Menon, J.)
In Sahana Industries v. State of Kerala, in WP(C) 20520/2021 (2021 KHC OnLine 7110), Kerala High Court (Devan Ramachandran, J.) held (October 11, 2021) as under:
“… If the Settlement Register shows this land to be Government land, then certainly, the petitioner is obliged to establish their title over the property through competent documents”. (Referred to in: Chitharanjan v. State of Kerala, WP(C) No. 25830/2010, 24.01. 2025, Harisankar V. Menon, J.)
In Chitharanjan v. State of Kerala, WP(C) No. 25830/2010 (2025:KER:5422) 24.01. 2025 (Harisankar V. Menon, J.) it is pointed out as under:
“7. …. In the settlement registerat Ext. R1(a), there is no dispute that the entire properties under old Survey No. 2211 having an extent in excess of 107 Acres are shown as “puramboke“….
8…. As regards the petitioner in WP(C) No. 25830 of 2010 also, the title is traceable to some documents of the Attingal Sub Registry of the yeas 1959, 1957 and 1061. But, it is categorically found that even in these documents, there is no mention as to the receipt of pattayam with respect to the property in question.
11. …. As already noticed, the settlement register describes the property as “Puramboke”. … In view of the discussions made above, I am of the opinion that the contentions raised by the learned Senior Government Pleader with respect to the malpractices committed, cannot be brushed aside.
13….. However, I notice that WP(C) No.25830 of 2010 the entry with respect to the Settlement Register is to be considered at first, which admittedly is against the petitioner. The case of the State is that some foul play is carried out subsequently at the instance of those interested and therefore, the subsequent entries cannot be acted upon.
14. On the other hand, the learned Government Pleader relied on Vallikunnil Janaki Amma and Ors. v. Sree Amruthamangalam Kshethram Moorthi, Kozhikode and Anr. [2014 (1) KHC 57], which laid down the principle with respect to the acceptability/relevance of the Settlement Register. As already noticed, I have found that the Settlement Register describes the property under old Survey No. 2211 as “Puramboke”. To the same effect is the judgment of a learned Single Judge in WP(C) No. 20520 of 2021 dated 11.10.2021. This Court further notices the judgment of the Apex Court in Suraj Bhan and Ors. v. Financial Commissioner and Ors. [(2007) 6 SCC 186] which held that mere entry in the revenue records does not confer title on a person. As already noticed, in view of the entries in the Settlement Register, the requirement of an appropriate assignment cannot be lost sight of.”
In Travancore Devaswom Board v. Mohanan Nair M.N., (2013) 3 KLT 132, (T.R. Ramachandran Nair, J ; A.V. Ramakrishna Pillai, J), it is observed as under:
“18. …. The land register as well as the settlement registerwill establish the plea of the Board that the property having an extent of 2.26 acres is Temple property. Thus, Section 27 of Act of 1950 is clearly attracted and the property is clearly Devaswom property.”
“51. As far as the property herein is concerned, the land register and the settlement register produced herein are relevant. The property having the entire extent of 2.26 acres is described as ”kavu” (holy grove) in the settlement register. In the land register also it is described as ”kshethram irippu sthalam” (property where the temple is situated). No other document or other evidence is there to prove the contrary. Therefore, these documents will definitely show that the item of property will fit in with the requirement of Section 3(1)(x) of the Act.”
“75. … Apart from that, in the light of Section 27 of the Travancore Cochin Hindu Religious Institutions Act and in the light of the settlement register and land register, the property is described as Temple puramboke and not Government puramboke. Further Government lands are covered by the exemption u/s 3(1)(x) of the Land Reforms Act and therefore he cannot claim any fixity of tenure. There is no claim by the Government here to the property.”
Is Settlement Register A Public Record
In Poddar Plantations Limited, v. Thekkemariveettil Madhavi Amma, ILR 2014-1 Ker 813, it is observed that the settlement register may be a public record. It is held as to the same as under:
“70. There could be no dispute that the court has the power to take judicial notice of public records. Assuming that the settlement register referred to by the Tribunal is a public record, it is not as if the contents of the settlement register cannot be disputed. Parties should get opportunity to challenge correctness of the contents of the document. The 2nd defendant did not get that opportunity. Hence the Tribunal was not correct in relying on the settlement register as referred to in its order.”
In Oriental Insurance Company Ltd. v. Poonam Kesarwani , (2010) ACJ 1992, the Division Bench of Allahabad High Court said that the State Register of Driving Licences is a public record; for, it can be inspected by any person.
Settlement Register (Adangal) as Mentioned in Kerala VO Manual
Clause 280 in Chapter 25 of the Kerala Village Office Manual (included in Land Revenue Manual Volume VI) refers to ‘Settlement Register (Adangal)’.
Clause 280 says:
1. Settlement Register is a Permanent Register.
2. It is also called “Adangal” or “A Register”.
3. There will be 2 Annexures (or Supplements) to the Settlement Register.
4. The 1st Annexure (or Supplement) Registers kept in the Village Offices contain all matters as to the lands subsequently surveyed (that were not surveyed at the time of Settlement).
5. The 2nd Annexure (or Supplement) Registers kept in the Village Offices contain all changes subsequent to settlement (and also the changes to the land mentioned in the 1st Annexure Registers).
6. The serial number of the entries in the 2nd Annexure Registers shall be noted in the remark column of the Settlement Register.
In Travancore, after 1910, no “Settlement” or “Settlement Register” has been made 2018(2) KLT 369 (HML case, Para 111).
‘Adangal’is a term originally used in the erstwhile Madras State. It is a Revenue Record based on the survey conducted.
In Cl. 281, Basic Tax Register (BTR) is specifically referred to. It is described as a “Permanent Register”.
Note: Clause 280 in Chapter 25 of the Kerala Village Office Manual referred to the Supplements to the Settlement Register because the Re- Survey is not completed throughout the State. In the Areas where the Re-Survey is conducted and BTR is made, the Supplement Registers have no application.
But, even in places where Re-Survey is effected, the 1910 Settlement Register (“A-Register”) is to be maintained (as a ‘permanent register’).
It is also noteworthy that no Settlement is made after 1910.
As a matter of fact, in Village Offices the Registers are maintained with the name “A-Register” containing the particulars in BTR; and “B-Registers”, to incorporate the subsequent changes made in the land (after preparation of the BTR) though they are not specifically directed in Kerala Village Office Manual. It is exactly corresponds to the “second additional register” stated in Cl. 281 of the Village Office Manual which is directed to be maintained in addition to the 1910 Settlement “A-Register”
Note: Settlement A to D Registers are (originally) referred to in the Travancore Land Revenue Manual, Vol. III (1915), in Cl. 712 and 713, respectively.
But Clause 280 in Chapter 25 of the Kerala Village Office Manual recognises the Settlement Register alone as ‘Permanent Register’.
As regards the authority of “Manuals” it is observed in State of Kerala v. Navaneeth Krishnan, ILR 2023-3 Ker 686; 2023-4 KLT 756, as under:
“The Apex Court in Lalita Kumari v. Govt. of U.P. [2013 (4) KHC 552: 2014-2 SCC 1] in paragraph 79 considered the binding authority of the CBI Crime Manual. It was held that CBI Crime Manual is not a statute, it is only a set of administrative orders issued for internal guidance of the CBI officers and it cannot supersede the provisions of Cr. P.C. It was further held that in the absence of any indication to the contrary in the Cr. P.C itself, the provisions of the CBI Crime Manual cannot be relied upon. A Single Bench of this Court in Santhosh T. A. And Another v. State of Kerala [2017 (5) KHC 107] dealt with the binding authority of the Kerala Excise Manual under the Abkari Act. It was held that the Manual contains only executive instruction and has no force of a statutory provision.”
In Jacob v. State of Kerala, 1964 KLT 359, it had been held (Vaidyalingam, J.), as under:
“The instructions or directions contained in the Travancore Land Revenue Manual … have not been given by virtue of any rule making power vested in the. Government, either under the provisions of the Travancore Revenue Recovery Act or under the provisions of the Travancore-Cochin Revenue Recovery Act. …. If that is so, the directions contained in the Travancore Land Revenue Manual can only be considered to be in the nature of executive directions and they will have no force whatsoever, especially in view of the fact that S.6 of the Travancore-Cochin Revenue Recovery Act, 1951 lays down that the sale of immovable property of the defaulter shall be “in the manner provided hereinafter”.
Chitta and Adangal in Madras
Chitta: Chitta is a revenue document maintained in Taluk office. It contains extent of land, name of owner and the type of land (wet/dry, irrigated/rainfed, etc.).
Adangal: Adangal is also a revenue record, prepared after surveying the land, that contains details about the land, such as the ownership, extent, classification of land, and details of cultivators. It is taken as a document for showing the ownership and possession of land. (See: D. Rajamanickam v. M. Pasupathiammal, 2019-2 Mad LJ 208; N. Chandrasekaran v. Arulmighu Thiruvatteeswarar Thirukkoil, 2020-1 LW 631; 2020-5 Mad LJ 227)
History of Settlement and Adangal Register in Malabar
In Sukapuram Sabhayogam v. State of Kerala, AIR 1963 Ker 101, it was pointed out with referencetothe Madras District Gazetteer, Malabar as regards the history of settlement (1900 -1904) and re settlement (1931-1934) and as regards the preparation of Adangal Registers after the settlement as under:
“67. In the Madras District Gazetteer, Malabar, by Inis, 1951 Edition, at page 344, it is stated that the settlement was introduced into the eight plain Taluks of Malabar between 1900 and 1904and the Revenue system of the District has been brought into line with that of the rest of the Presidency, due allowance being made for special local conditions.
68. Dealing with the re-settlement, it is stated in the same Gazetteer, at page 848, that it took place between 1931 and 1934, and that the re-settlement was done because the term of 30 years for which the then existing rates of land assessment were sanctioned had expired between 1929-30 and 1932-33- A list of the taluks giving particulars as to when the last settlement expired and the new settlement came into operation, is also given at the same page.
69. At page 349 of the same book, among the special features of the re-settlement, it is mentioned that the terms “janmabhogam” or “private janmam” were replaced by new holdings and old holdings respectively. That is, in the Adangal Registers etc., maintained after the settlement was introduced for the first time in 1900 and 1904, the lands of all the jenmis appear to have been shown as private janmam but in the re-settlement the register shows them as old holdings.”
Ryotwari Settlement in Malabar Area
In Balmadies Plantations Ltd. v. The State of T.N., AIR 1972 SC 2240 while examining the status of land holders under ryotwari settlement it was pointed out that this system was brought about by Col. Read in 1792 consequent to ceding of territories by Tippu Sultan, as described in the Manual of Administration quoted by Baden-Powell, in Vol. III of Land Systems of British India.
Private Janmam in Malabar Area – Ended By 1934
In Sukapuram Sabhayogam v. State of Kerala, AIR 1963 Ker 101, it is also pointed out that notwithstanding the introduction of the Ryotwari settlement in Malabar area between 1900 and 1904, certain lands were shown as ‘private janmam’ as distinguished from ‘Government Janmam’. And, added as under:
“The practice of treating the properties of persons like the petitioner as private janmam has been completely given the go-by, at any rate, after the resettlement during 1931-1934.”
In Land Law in Madras Presidency, BR Chakravarthy, 1927, it is said as under:
“The land Revenue settlement in Malabar differed from the ordinary ryotwari settlement in the rest of the presidency, in that in Malabar. The existence of a landlord between the state and the actual cultivator is recognised in the theoretical distribution of the produce, on which the rates of assessment are based.”
The tradition as regards the Malabar-land is pointed out by Chkravarthy as under:
“The tradition with regard to Malabar is that the God Parasurama, who created it, granted it to a set of Brahmins to be held by them tax free; that accordingly these Brahmins held and cultivated the lands, without -even the obligation to pay any tax”.
Lands held under Ryotwari tenure after Ryotwari Settlement
In Kannan Devan Hills Produce v. State of Kerala, AIR 1972 SC 2301; 1972-2 SCC 218, it was pointed out that it was held by the Full Bench of the Kerala High Court in Sukapuram Sabhayogam v. State of Kerala, AIR 1963 Kerala 101 that the lands, after 1934, were ‘held under Ryotwari tenure after the introduction of the Ryotwari Settlement in the Malabar area of Kerala State’.
Patta in (Madras) Estates Land Act, 1908
As observed in Secretary of State for India v. T. V. Raghavachariar, 83 IndCas 1009; 1924 20 LW 815; 1924-47 MLJ 503, patta was not a document of title, or a deed of grant in the erstwhile Madras State. In ‘Land Law in Madras Presidency’, 1927, BR Chakravarthy says that the landholders had to issue pattas (rent deeds) and the ryots had to pay muchilikas (rent) and that they were to be exchanged on ‘yearly basis’. Going by Estates Land Act, 1908 (Sec. 50, 51 and 52), ‘Patta’ was originally a word connected to land-lease. (Government was the largest Landholder).
Rayotwari Patta in Estates Act, 1948
Under Sec 11 of the Estates (Abolition and Conversion into Rayotwari) Act, 1948, every ryot would be entitled for Rayotwari Patta.
Note: A ryotwari pattadar was not a proprietor of land in its full sense, but only a tenant.
‘Patta’ is issued by Landholder to Ryot, stating rate of Rent
As per Sec. 50, 51 and 52 of the (Madras) Estates Land Act, 1908 ‘Patta’ is a document issued by the landholder (person owning land and entitled to collectrent) to the ryot (person holds ryoti land on condition to pay rent) stating rate ofrent, among other things, for the period, usually, one year.
“Record of Rights” in Madras Presidency
In ‘Land Law in Madras Presidency’, 1927, BR Chakravarthy says as regards the first larger step for survey of lands as under:
“Record of Rights: The Local Government may make up order directing that a Survey be made and a. Record of Rights prepared by a revenue officer in respect of any estate or part there-of in the following cases.
(l) Where an application is made by the landholder or landholders, if there are more than one, and of the ryots;
(2) Where the Local Government considers, that the preparation of a record is necessary for securing the rights of the landholder; and of the ryots and for preventing disputes arising between them;
(3) Where an estate is managed by the Government or is under the superintendence of the Court of Wards.
The first step in the preparation of the Record, will be a survey of the lands under the Madras Survey and Boundaries Act 1897; the next step will be, if the Government so directs, to inquire into the rights and obligations of the ryots and of the landholder in respect of the several holdings. ‘When both these steps are completed, a preliminary record will be made of the results of the inquiries and of the survey by the Revenue Officer in .charge and published in such manner and for such period as the Government may direct. During the period of publication, all objections to any entries or omissions in the Record will be heard and determined by the Revenue Officer himself, in accordance with the procedure prescribed by the Government.”
End Notes
Certified Copiesof Public Documents Admissible per se without Formal Proof
Certified copies of the public documents can be proved without formal proof. See:
Jaswant Singh v. Gurdev Singh, 2012-1 SCC 425 ,
Shyam Lal @ Kuldeep v. Sanjeev Kumar, AIR 2009 SC 3115; 2009-12 SCC 454
Harpal Singh and Another v. State of Himachal Pradesh, AIR 1981 SC 361
Madamanchi Ramappa v. Muthalur Bojjappa, AIR 1963 SC 1633
Rajasthan State Road Trans. Corp. v. Nand Kishore, 2002 ACJ 1564 (Raj)
Md. Akbar v. State of A.P., 2002 CrLJ 3167 (And)
Collector (L. A. ), South Andaman v. Himangshu Mondal, 2015-2 CalLT 1
Arti Meena v. Rajasthan High Court, Jodhpur, 2020-1 SCT 1 (Raj).
In Madamanchi Ramappa v. Muthalur Bojjappa (Gajendragadkar , J.), AIR1963 SC1633; 1964-2 SCR 673, it is held as under:
“9. … The document in question being a Certified copy of a public document need not have been proved by calling a witness.”(Referred to in Rangaraju v. Kannayal, 10 Jan 2012, (Mad).
In Harpal Singh and Another v. State of Himachal Pradesh, AIR 1981 SC 361, it is held as under:
“3.… We cannot agree with him for the simple reason that the entry was made by the concerned official in the discharge of his official duties, that it is therefore clearly admissible under Section 35 of the Evidence Act and that it is not necessary for the prosecution to examine its author ” (Quoted in: Manikanta v. State of Karnataka, 2024 Kar HC 21233)
In Shyam Lal @ Kuldeep v. Sanjeev Kumar, AIR 2009 SC 3115; 2009-12 SCC 454, it was observed as under:
“25. The findings of the learned District Judge holding Ex. P. 2 to be a public documentand admitting the same without formal proof cannot be questioned by the defendants in the present appeal sinceno objection was raised by them when such document was tendered and received in evidence.
It has been held in Dasondha Singh and Others v. Zalam Singh and Others [1997(1) P.L.R. 735] that an objection as to the admissibility and mode of proof of a document must be taken at the trialbefore it is received in evidence and marked as an exhibit.
Even otherwise such a document falls within the ambit of Section 74, Evidence Act, and is admissible per se without formal proof“.
In Jaswant Singh v. Gurdev Singh, 2012-1 SCC 425, it is held that certified copy of a public document prepared under Section 76 of the Act, in terms of Section 74 of the Indian Evidence Act, 1872 is admissible in evidence under Section 77 of the said Act, without being proved by calling witness. It is said as under:
“9. … To put it clear, the compromise had become a part of the decree which was passed by the court of Sub-Judge Ist Class, Hoshiarpur. Hence, it is a public document in terms of Section 74 of the Indian Evidence Act, 1872 (in short ‘the Act’) and certified copy of the public document prepared under Section 76 of the Act is admissible in evidence under Section 77 of the said Act. A certified copy of a public document is admissible in evidence without being proved by calling witness.
See also the following cases where documents were accepted in evidence and acted upon on the basis of Section 35 Evidence Act:
Umesh Chandra v. State of Rajasthan, AIR 1982 SC 1057 (admission forms as also the School’s register)
Harpal Singh v. State of Himachal Pradesh, AIR 1981 SC 361 (certified copy of the birth register).
It is Settled – Revenue Records will not confer title
Sawarni v. Inder Kaur, (1996) 6 SCC 223
Balwant Singh v. Daulat Singh, (1997) 7 SCC 137
Suman Verma v. Union of India, (2004) 12 SCC 58;
Gurunath Manohar Pavaskar v. Nagesh Siddappa Navalgund, AIR 2008 SC 901
State of AP v. Star Bone Mill & Fertiliser Company, (2013) 9 SCC 319
Faqruddin v. Tajuddin, (2008) 8 SCC 12;
Rajinder Singh v. State of J&K, (2008) 9 SCC 368;
Narasamma v. State of Karnataka, (2009) 5 SCC 591
Municipal Corporation, Aurangabad v. State of Maharashtra, (2015) 16 SCC 689;
T. Ravi v. B. Chinna Narasimha, (2017) 7 SCC 342;
Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co., (2019) 3 SCC 191;
Prahlad Pradhan v. Sonu Kumhar, (2019) 10 SCC 259;
Ajit Kaur v. Darshan Singh, (2019) 13 SCC 70.
Bhimabai Mahadeo Kambekar v. Arthur Import and Export Co. (2019) 3 SCC 191
Jitendra Singh v. The State of Madhya Pradesh (2021 SCC OnLine SC 802) [M.R. Shah, Aniruddha Bose, JJ.]
P. Kishore Kumar v. Vittal K. Patkar, 2024-1 CTC 547; 2023-4 CurCC(SC) 278
Laxkshmi B. v. Suku, 2024-1 KerHC 380
The State of Punjab vs Bhagwantpal Singh Alias Bhagwant Singh, 10 July, 2024: 2024 INSC 518
Ram Balak Singh v. State of Bihar, 2024 INSC 360, 01 May 2024 [Pankaj Mithal and Prasanna Bhalachandra Varale, JJ.]
Revenue Records Prove Possession
Gurunath Manohar Pavaskar v. Nagesh Siddappa Navalgund, AIR 2008 SC 901 (Revenue record merely raises a presumption in regard to possession)
State of AP v. Star Bone Mill & Fertiliser Company, (2013) 9 SCC 319 (Revenue records merely show possession of a person)
Zila Panchayat Etah v. Om Prakash Shah, 01 Sep 2017; 2017 0 Supreme(SC) 1418 (There is statutory presumption of correctness of revenue entries which has not been rebutted in the instant case.)
Krishnamurthy S. Setlur v. O.V. Narasimha Setty, 2019-9 SCC 488 (Revenue records prove possession)
Survey Authorities Not to decide Title;Only Conclusive proof – Boundaries recorded correctly (when survey was made)
Kannan v. Kannan, (1964 KLT 228),
The Cheriyanad Grama Panchayath v. The State of Kerala, (2019 (5) KHC 699),
Venugopalan Nair v. Saraswathy Amma, (2013 (4) KLT 717),
Karthyayani v. Balakrishnan, (2014 (2) KLT Suppl. 67 (Ker.),
Ibrahim v. Saythumuhammed, (2013 (4) KLT 435)
Prahlad Pradhan v. Sonu Kumhar, (2019) 10 SCC 259
Achama Alexander v. Asst. Director, Survey and Land Records, 2022 (2) KHC 131: 2022-3 KLT 198.
Thomas v. Philip,2022(4) KerHC 451;
Elambilan Nani Amma v. Mulavana Antony (K. Babu, J,), 2023-7 KHC 418.
Presumption of Correctness on Entries in the Revenue Record
In Vishwa Vijai Bharti vs Fakhrul Hasan, AIR 1976 SC 1485 it is held as to the presumption of correctness on revenue-records as under:
“It is true that the entries in the revenue record ought, generally, to be accepted at their face value and courts should not embark upon an appellate inquiry in to their correctness. But the presumption of correctness can apply only to genuine, not forged or fraudulent, entries. The distinction may be fine but it is real. The distinction is that one cannot challenge the correctness of what the entry is the revenue record states but the entry is open to the attack that it was Made fraudulently or surreptitiously. Fraud and forgery rob a document of all its legal effect and cannot found a claim to possessory title.”
Statutory Presumption of correctness of revenue entries
In Zila Panchayat Etah v. Om Prakash Shah, 01 Sep 2017; 2017 0 Supreme(SC) 1418, it is held as under:
“There was absolutely nothing to rebut the Nazul Khasra or the records maintained by the municipality and Zila Parishad. The appellant had pleaded Survey numbers in its written statement very clearly and had adduced evidence in this regard. There was absolutely nothing to discard the documentary evidence adduced by the appellant and rely upon oral ipse dixit evidence of the plaintiff-respondent. There is statutory presumption of correctness of revenue entries which has not been rebutted in the instant case. The plaintiff-respondent was claiming his ownership on the property in question, but no documentary evidence had been adduced on his behalf indicating that they were the owners of the property in question. Absence of entry in relevant documents of ownership also negates case of plaintiffs. Thus the property in question was clearly under the ownership of the Government.”
Revenue records can support claim of ownership when corroborated
In State of Haryana & Anr. Vs. Amin Lal(Vikram Nath, Prasanna B.VaraleJJ),2024-4 CurCC(SC) 222, it is held as under:
Revenue records are public documents maintained by government officials in the regular course of duties and carry a presumption of correctness under Section 35 of the Indian Evidence Act, 1872. While it is true that revenue entries do not by themselves confer title, they are admissible as evidence of possession and can support a claim of ownership when corroborated by other evidence.
1. a sum named (or fixed or pre-estimated) as damages to be paid in case of breach; and,
2. any other stipulation by way of penalty.
Three restraints are discussed in Section 74.
1. A ‘reasonable compensation’alone will be entitled to by the claimant.
2. The claimant is entitled compensation, ‘whether or not actual damage or loss is proved’.
3. It must be reasonable compensation ‘not exceeding the amount so named’.
The following (apparently antithetical) words in this Section (ex-facie, out of ‘ill-drafting’) Triggered Controversies.
(1) “reasonable compensation”
(2) ‘whether or not actual damage or loss is proved’ and
(3) “not exceeding the amount so named”.
The following are the divergent views –
1. Earnest money (nominal sum , e. g. a shilling) can be forfeited but in dealing with the rest of the amount which was not admittedly earnest money Section 74 shall apply (Maula Bux v. Union of India, AIR 1970 SC 1955; 1969-2 SCC 554).
2. The court has to adjudge in every case reasonable compensation. Because, liability for damages is a matter for the civil court, and a party to an agreement cannot be an arbiter in its own cause (Union of India v. Raman Iron Foundry, AIR 1974 SC 1265: (1974) 2 SCC 231).
3. Earnest sum (i.e. pre-estimated damages) can be forfeited directly, if breach from other side (Satish Batra v. Sudhir Rawal, (2013) 1 SCC 345).
4. If breach alleged by a party is DENIED by the other, adjudication (is) necessary. If breach is admitted, injured party can forfeit, without aid of court (State of Karnataka v. Rameswara Rice Mill, (1987) 2 SCC 160).
5. Onus to prove that the same was ‘penal’ in nature squarely lies on the party seeking refund of the same. Failure to discharge such burden would treat any pre-estimated amount stipulated in the contract as a ‘genuine pre-estimate of loss’ (ONGC Ltd. v. Saw Pipes Ltd., (2003) 5 SCC 705).
Part I
Legal Background of Godrej Projects Development Limited v. Anil Karlekar (2025 INSC 143, Feb. 3, 2025)
What is Earnest-Money?
In law of contracts, earnest-money is the amount paid as advance in sale of a property and forms part of the purchase price when the transaction goes forward; and liable to be forfeited by the seller, in case the sale is failed owing to the fault of the purchaser (Shree Hanuman Cotton Mills v. Tata Aircraft Limited, 1970 (3) SCR 127).
In Maula Bux v. Union of India, AIR 1970 SC 1955; 1969-2 SCC 554, it is shown that the earnest money is a ‘nominal sum’. It is stated as under:
“According to Earl Jowitt in “The Dictionary of English Law” at P 689: “Giving an earnest or earnest-money is a mode of signifying assent to a contract of sale or the like by giving to the vendor a nominal sum (e. g. a shilling) as a token that the parties are in earnest or have made up their minds.”
In Authorised Officer, Central Bank of India v. Shanmugavelu, AIR 2024 SC 962; 2024-6 SCC 641, it is pointed out as under:
“83. The difference between an earnest or deposit and an advance part payment of price is now well established in law. Earnest is something given by the Promisee to the Promisor to mark the conclusiveness of the contract. This is quite apart from the price. It may also avail as a part payment if the contract goes through. …. Earnest need not be money but may be some gift or token given. It denotes a thing of value usually a coin of the realm given by the Promisor to indicate that the bargain is concluded between them and as tangible proof that he means business. Vide Howe vs. Smith, (1884) 27 Ch.D. 89.”
Section 74 of the Indian Contract Act holds the field.
Sec. 74 Says as to ‘Reasonable Compensation’
A genuine ‘pre-estimated damages’ (on breach) had been accepted in law of contracts, under the English Common Law. But, a penalty had not been enforced by common law courts, as it was a stipulation in terrorem.
Sec. 74 mandates that the contractual terms as to damages, should subserve the edicts under this Section.
Section 74 of the Indian Contract Act reads as under:
S. 74: “Compensation for breach of contract where penalty stipulated for: When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensationnot exceeding the amount so namedor, as the case may be, the penalty stipulated for.”
Section 74 lays down two (enforceable) classes –
1. a sum named (or fixed or pre-estimated) as damages to be paid in case of breach; and,
2. any other stipulation by way of penalty.
Three restraints are discussed in Section 74.
1. A ‘reasonable compensation’alone will be entitled to by the claimant.
2. The claimant is entitled compensation, ‘whether or not actual damage or loss is proved’.
3. It must be reasonable compensation ‘not exceeding the amount so named’.
The following (apparently antithetical) words in this Section Triggered Controversies..
(1) “reasonable compensation”
(2) ‘whether or not actual damage or loss is proved’ and
(3) “not exceeding the amount so named”.
Two points of Disputes on Application of Sec. 74
They are:
1. Whether Adjudication of court necessary for fixing damages (even if ‘breach’ admitted)?
2. Whether the pre-estimated damages can be forfeited (by the party concerned) in case ‘breach’ is ‘admitted’ by the other party?
First View – Earnest (Nominal) can be Forfeited; Rest Not
Maula Bux (1987) and Fateh Chand (1970) – Two Earlier Decisions on Earnest Money
In Fateh Chand v. Balkishan Das AIR 1963 SC 1405, the Constitution Bench of out Apex Court observed as under:
“11. …. In all cases, therefore, where there is a stipulation in the nature of penalty for forfeiture of an amount deposited pursuant to the terms of contract which expressly provides for forfeiture, the court has jurisdiction to award such sum only as it considers reasonable, but not exceeding the amount specified in the contract as liable to forfeiture….
15. …. The section does not confer a special benefit upon any party; it merely declares the law that notwithstanding any term in the contract predetermining damages or providing for forfeiture of any property by way of penalty, the court will award to the party aggrieved only reasonable compensation not exceeding the amount named or penalty stipulated. ….. The court has to adjudge in every case reasonable compensation to which the plaintiff is entitled from the defendant on breach of the contract. …..”
Gujrat High Court (MB Shah, J.) in State of Gujarat v. Mohanlal Motilal and Company, 1987-1 GLH 447, analysed Maula Bux v. Union of India, AIR 1970 SC 1955, and Fateh Chand v. Balkishan Das AIR 1963 SC 1405, and said as under:
“The Supreme Court (Maula Bux v. Union of India, AIR 1970 SC 1955) also considered the decision in Fateh Chand v. Balkishan Das AIR 1963 SC 1405 and held that the said decision recognised a principle that earnest money can be forfeited but in dealing with the rest of the amount which was not admittedly earnest money Section 74 shall apply.”
(But, note: Sec. 74 covers – “if a sum is named in the contract as the amount to be paid in case of such breach” (whereby, earnest is also covered by Sec. 74). It is the reason that these rulings are not consistentlyfollowed.)
Second View Damages, Only After Adjudication
Liability for damages is a matter for the civil court, and a party to an agreement cannot be an arbiter in its own cause. This proposition is followed in the following cases:
Bharat Sanchar Nigam Ltd. v. Motorola India Pvt. Ltd., AIR 2009 SC 357: 2009 2 SCC 337;
Rambal Co. v. Kerala State Science & Technology Museum, 2000 (3) Arb. LR 212;
Union of India v. Raman Iron Foundry, AIR 1974 SC 1265: (1974) 2 SCC 231.
Mohammed Kunhi v. Executive Engineer, 2001(3) KLT 733;
Union of India v. Tejinder Kumar Dua, 2013-200 DLT 60;
Tulsi Narayan Garg v. Madhya Pradesh Road Development Authority, Bhopal, 2019 SCC OnLine SC 1158.
Latheef v. Superintending Engineer, ILR 1993(2) Ker 426;
Abdul Rahiman v. Divisional Forest Officer, AIR 1989 Ker 1;
SThird View – Earnest Sum Can be Forfeited Directly, if Breach From Other Side
It is the view in Satish Batra v. Sudhir Rawal, (2013) 1 SCC 345.
Fourth View – If Breach Admitted (otherwise, not), Injured Party can Forfeit, Without aid of Court
Where a sum is named in the contract as the amount to be paid in case of breach, and the breach is admitted (or not disputed) the injured party can forfeit (by himself); and need not seek the aid of court.
State of Karnataka v. Rameswara Rice Mill, (1987) 2 SCC 160
Kaikkara Construction Company v. State Of Kerala, (2022) 1 Ker HC 541
Abdul Rahiman v. Divisional Forest Officer, 1988 (2) Ker LT 290
In other words,if breach alleged by a party is DENIED by the other, adjudication (is) necessary.
State of Kerala v M.K. Jose, (2015) 9 SCC 433,
JG Engineers Private Limited v. Union of India, AIR 2011 SC 2477: (2011) 5 SCC 758,
State of Karnataka v. Rameshwara Rice Mills, Thirthahalli, AIR 1987 SC 1359,
Build Tech India Ltd. v. State of Kerala, 2000 (2) Ker LJ 142 (breach – not admitted).
Fifth View – Onus to Prove ‘Penal’ lies on the Party Seeking Refund
Referring ONGC Ltd. v. Saw Pipes Ltd., (2003) 5 SCC 705, it is held in Desh Raj v. Rohtash Singh, 2023 AIR SC 163; 2023-3 SCC 714, as under:
“35. …. Hence, in a scenario where the contractual terms clearly provide the factum of the pre estimate amount being in the nature of ‘earnest money’, the onus to prove that the same was ‘penal’ in nature squarely lies on the party seeking refund of the same. Failure to discharge such burden would treat any pre-estimated amount stipulated in the contract as a ‘genuine pre-estimate of loss’.”
Two Divergent Decisions Holds the Field- Satish Batra (2013) and Kailash Nath (2015)
The divergent views are the following –
1. The words ‘whether or not actual damage or loss is proved’ are to be given effect. Thereby, the entire “earnest” money could be forfeited by seller, of his own, in case the buyer breaches the contract.
2. The implication of the word ‘reasonable’ is that the compensation is a matter always left to be determined by the appropriate court of law or other legal forum. Even if the parties to the contract have pre-estimated the damages, the injured party cannot appropriate the pre-estimated damages, of his own and the reasonable compensation or damages was always subject to,or depended upon, the judicial determination.
Injured party can appropriate the pre-estimated damages, of his own
It is held in Satish Batra v. Sudhir Rawal (2013 (1) SCC 345) as under:
“15. The law is, therefore, clear that to justify the forfeiture of advance money being part of “earnest money” the terms of the contract should be clear and explicit. Earnest money is paid or given at the time when the contract is entered into and, as a pledge for its due performance by the depositor to be forfeited in case of non- performance by the depositor. There can be converse situation also that if the seller fails to perform the contract the purchaser can also get double the amount, if it is so stipulated. It is also the law that part-payment of purchase price cannot be forfeited unless it is a guarantee for the due performance of the contract. In other words, if the payment is made only towards part- payment of consideration and not intended as earnest money then the forfeiture clause will not apply.
16. When we examine the clauses in the instant case, it is amply clear that the clause extracted hereinabove was included in the contract at the moment at which the contract was entered into.
It represents the guarantee that the contract would be fulfilled. In other words, “earnest” is given to bind the contract, which is a part of the purchase price when the transaction is carried out and it will be forfeited when the transaction falls through by reason of the default or failure of the purchaser. There is no other clause that militates against the clauses extracted in the agreement dated 29-11-2011.
17. We are, therefore, of the view that the seller was justified in forfeiting the amount of Rs 7,00,000 as per the relevant clause, since the earnest money was primarily a security for the due performance of the agreement and, consequently, the seller is entitled to forfeit the entire deposit. The High Court has, therefore, committed an error in reversing the judgment of the trial court.”
Kailash Nath v. DD Authority, (2015) 4 SCC 136) took an Opposite View
In Kailash Nath (2015), the Supreme Court categorically held in para 43 as under:
“43. On a conspectus of the above authorities, the law on compensation for breach of contract under Section 74 can be stated to be as follows:-
Where a sum is named in a contract as a liquidated amount payable by way of damages, the party complaining of a breach can receive as reasonable compensation such liquidated amount only if it is a genuine pre-estimate of damages fixed by both parties and found to be such by the Court. In other cases, where a sum is named in a contract as a liquidated amount payable by way of damages, only reasonable compensation can be awarded not exceeding the amount so stated. Similarly, in cases where the amount fixed is in the nature of penalty, only reasonable compensation can be awarded not exceeding the penalty so stated. In both cases, the liquidated amount or penalty is the upper limit beyond which the Court cannot grant reasonable compensation.
Reasonable compensation will be fixed on well known principles that are applicable to the law of contract, which are to be found inter alia in Section 73 of the Contract Act.
Since Section 74 awards reasonable compensation for damage or loss caused by a breach of contract, damage or loss caused is a sine qua non for the applicability of the Section.
The Section applies whether a person is a plaintiff or a defendant in a suit.
The sum spoken of may already be paid or be payable in future.
The expression “whether or not actual damage or loss is proved to have been caused thereby” means that where it is possible to prove actual damage or loss, such proof is not dispensed with. It is only in cases where damage or loss is difficult or impossible to prove that the liquidated amount named in the contract, if a genuine pre-estimate of damage or loss, can be awarded.
Section 74 will apply to cases of forfeiture of earnest money under a contract. Where, however, forfeiture takes place under the terms and conditions of a public auction before agreement is reached, Section 74 would have no application.”
In Satish Batra v. Sudhir Rawal (2013 (1) SCC 345) our Apex Court had (first) taken an extreme-view that the claimant can enforce the compensation clause ‘of his own’ and it could be forfeited. In Kailash Nath v. Delhi Development Authority, (2015) 4 SCC 136, the Supreme Court took the (second) extreme-view that no amount, even a nominal sum, could be forfeited as earnest money by the seller ‘of his own’ ; he has to approach the civil court.
(Note: It had already been pointed out that that the acceptable legal position lies midway between the two differing views.)
Part II
Godrej Projects Development Limited v. Anil Karlekar
At the outset it may be pointed out – the aforestated controversy remains unanswered by this decision also. And it may be added – without addressing the controversy the Apex Court applied both principles (laid down in both the cases Satish Batra v. Sudhir Rawal and Kailash Nath v. Delhi Development Authority) without analysing and deciphering the principles thereto.
Facts in Brief
It is a case from National Consumer Disputes Redressal Commission.
The Complainant before the Consumer Commission had booked an apartment in the opposite-party, (Godrej) Projects.
He paid Rs. 51,12,310/-. An Agreement was entered into between the parties.
It was stipulated that 20% of the Basic Sale Price (BSP) would be ‘earnest money’.
It could be forfeited in case of fault by the buyer.
Godrej thereafter gave/offered possession to the Complainant.
The Complainant refused to take possession.
The Supreme Court stated as regards the conduct of the Opposite Party as under:
“It is thus clear that the Respondents had cancelled the deal since there was recession in the market. Not only that, but the NCDRC has specifically observed as under:
“Hence, the action of the OPs in cancelling the apartment and forfeiting the amount as per terms and conditions of the application form and/or the BBA cannot be faulted with. However, the condition of forfeiture of 20% of BSP, being the earnest money liable for forfeiture in case of cancellation appears unreasonable. It will be in the interest of justice and fair play to both sides, if OPs are allowed to deduct only 10% of the BSP as earnest money i.e. Rs.17,08,140/- and refund the balance amount to the complainants.”
Courts Can Strike Down Unfair And Unreasonable Contracts
The Supreme Court referred to Central Inland Water Transport Corporation Limited and Another vs Brojo Nath Ganguly (AIR 1986 SC 1571, 1986 (3) SCC 156). It held that courts can strike down unfair and unreasonable contracts, especially when parties have unequal bargaining power.
The Court also referred to Pioneer Urban Land and Infrastructure Limited v. Govindan Raghavan, where similar one-sided clauses in an agreement were considered as an “unfair trade practice”.
The Court emphasized that forfeiture of earnest money should not be a penalty, and if it is disproportionate, then Section 74 of the Indian Contract Act, 1872 would be applicable.
The Apex Court distinguished Satish Batra v. Sudhir Rawal
The Apex Court distinguished Satish Batra v. Sudhir Rawal and Desh Raj v. Rohtash Singh. In these cases, forfeiture of earnest money was upheld on the finding that the contracts were not ‘one-sided’ (and here, it is otherwise).
The Apex Court (in Godrej Projects Development Limited) extracted Paras 15, 16 and 17 (quoted above) of Satish Batra and said as under:
“19. This Court has held that to justify the forfeiture of advance money being part of “earnest money” the terms of the contract should be clear and explicit. It has been observed that the earnest money is paid or given at the time when the contract is entered into and, as a pledge for its due performance by the depositor to be forfeited in case of non- performance by the depositor. However, this Court clarified that if the payment is made only towards part-payment of consideration and not intended as earnest money then the forfeiture clause will not apply.”
Apex Court Did Not Discern the “Extreme-Views”
From the above, it is clear that the Apex Court rushed without discerning the aforementioned “extreme-views“ as regards forfeiture by “ones own”.
The Opposite Party Godrej approached the Supreme Court claiming that the NCDRC had no reason to interfere with the terms of the contract which provided for forfeiture of 20% as earnest money. NCDRC Ordered to deduct 10% cancellation charges of the BSP (not 20% – obviously applying “reasonable” compensation), and to return the balance with 6% interest. It is definite – application of the doctrine of “reasonable” compensation (in this juncture) is the application of the principles inKailash Nath.
The Apex Court observed as under:
“38. It can be seen that this Court has held that if the forfeiture of earnest money under a contract is reasonable, then it does not fall within Section 74 of the Indian Contract Act, 1872, inasmuch as, such a forfeiture does not amount to imposing a penalty. It has further been held that, however, if the forfeiture is of the nature of penalty, then Section 74 would be applicable. This Court has further held that under the terms of the contract, if the party in breach undertook to pay a sum of money or to forfeit a sum of money which he had already paid to the party complaining of a breach of contract, the undertaking is of the nature of a penalty.”
The Supreme Court pointed out that under the Agreement, Godrej was entitled to forfeit the entire earnest money upon termination of the agreement for non-payment by the buyer. And that the NCDRC hadrightly held that the Appellant was entitled to cancel the apartment and “forfeit” the amount. It appears that the NCDRC and the Apex Court proceeded (in this juncture) on the ‘principles’ in Satish Batra.
The Apex Court also looked into the “reasonableness” of the provision for compensation/ forfeiture on another independent aspect (actually it related to Sec. 23 Contract Act – says as to void nature of the contract. See: Central Inland Water Transport Corporation Limited v. Brojo Nath Ganguly, (1986) 3 SCC 156). Looking into the corresponding obligation of the developer the Court found – under the agreement, the compensation payable to the buyer in case of delay in giving possession by the developer was only meagre. Thus the agreement was one-sided. And it was found that of forfeiture of 20% of the BSP was not ‘reasonable’ and requires reduction to 10% of the BSP. The NCDRC and the Apex Court proceeded (in this juncture) on the principles in Kailash Nath.
The Court said it as under:
“39. Relying on the aforesaid observations of this Court, the NCDRC, in a series of cases right from the year 2015, has held that 10% of the BSP is a reasonable amountwhich is liable to be forfeited as earnest money. The NCDRC has initially taken this view in the case of DLF Ltd. v. Bhagwanti Narula (supra). The said view has been followed subsequently in various judgments of the NCDRC. We see no reason to upset the view consistently taken by the NCDRC based on the judgment of this Court in the case of Maula Bux (supra).”
The Apex Court further found that the NCDRC was not justified in awarding interest on the amount to be refunded.
Conclusion
It is a simple thing – the entire difficulties have arisen out of the ‘ill-drafting’ (of Sec. 74).
As stated above, in Satish Batra v. Sudhir Rawal (2013) our Apex Court had taken an extreme-view that the claimant could enforce the compensation clause ‘of his own’ and it could be forfeited. In Kailash Nath v. Delhi Development Authority (2015), the Supreme Court took the (opposite) extreme-view that no amount – even a nominal sum – could be forfeited as earnest money by the seller ‘of his own’ ; he has to approach the civil court. When one considers these matters, it stands as an “elementary” and fundamental thing that requires resolution.
The Apex Court has to consider, in a proper case, the various aspects of this matter and lay down a settled principle. Or, the Parliament has to do the needful.
Tail Piece: Who will bell the cat? How much longer must we endure this ‘volatile’ situation – leaving it to the sweet will of the courts (on this “elementary” matter)?
Calvin Principle, and the Doctrine “to do a great right” court can do “a little wrong”, not applied.
Saji Koduvath, Kottayam.
Introduction
In Krishnadatt Awasthy v. State of M.P., 29 January, 2025 (Sudhanshu Dhulia, Hrishikesh Roy, S.V.N. Bhatti), the Supreme Court of India rendered the final verdict in a referred matter from a two-judge (split) verdict (Krishnadatt Awasthy v. State of Madhya Pradesh, 2024-4 SCR 151). Doctrines of rule against bias(nemo judex in causa sua)and the right to a fair hearing (audi alteram partem) were considered in detail in this case. In the final pivotal words the Apex Court said as under:
“Therefore, for an allegation of bias to be proved, it is imperative that the procedural safeguards of a fair hearing are observed allowing for establishment of the relevant facts.”
A Paradox
(When looked on ‘non-impleadment’ of necessary parties – and not ‘hearing’ them – as a ground as to violation of Natural Justice.)
Justice K.V. Vishwanathan found – the legal process was faulty for “gross violation” of the principles of natural justice(for non-impleadment) : : but, heupheld the selectionandallowed the appeal.
Justice J.K. Maheshwari found – no violation of natural justice (for “non-impleadment is a useless formality“) ::but, held the selection illegal and dismissed the appeal. (Of course, no doubt, the Appeal is allowed on the specific finding – on violation of natural justice on ‘bias‘.)
(The Three Judge Bench, in reference, upheld the view of Justice K.V. Vishwanathan)
Facts in Brief
Some Teachers (Shiksha Karmis) were appointed in 1998.
An unsuccessful candidate challenged the selection and appointment of the Appellants.
Nepotism, corruption and bias, in the selection process, were the allegations.
Ten appointees were alleged to be the relatives of the members of the selection committee.
The Collector accepted the challenge and set aside the appointments.
The Appellants filed a Revision Petition. It was dismissed.
They filed a Writ Petition but it was also dismissed. Hence before the SC.
Contentions of the Appellants (Selected Teachers)
They highlighted the distinction between cases of “no opportunity at all” and “adequate opportunity”. They were not heard at all by the Collector.
Merely being relatives, undue favour cannot be presumed. Marks allocation was objective.
Collector’s decision was violation of natural justice. They were not made parties in the appeal.
There was No clear evidence of prejudice or unfair advantage.
The appellants were finally heard in revision proceedings. It cured the procedural defects.
Ultimately, it is pleaded that the appellants have been working for the last 25 years and that one of the appellants has, in fact, retired while others are on the verge of retirement.
Respondent’s Arguments
They contend there was no “prejudice” due to the non-compliance of the principles of natural justice by the non hearing of the Collector.
Even though the appellants received less marks in the basic qualifying examination, they have obtained higher marks in the interview.
The relatives have come to be appointed.
There was reasonable likelihood of bias and that the relatives of committee members have obtained higher marks during the interview.
The Supreme Court: Split Verdict by Two-Judge-Bench.
Justice K.V. Vishwanathan, concluded that the selection of appellants was erroneously set aside, in breach of the principle of audi alteram partem. The principle must be adhered to at the original stage. Furthermore, Rule 9 of the Appeal and Revision Rules, 1995 was not complied with. It was also observed that the orders of the Collector made no reference either to definition of ‘relative’ in explanation to Section 40(c) of Adhiniyam nor to the resolution providing for recusal. Non-impleadment of parties amounted to ‘no opportunity at all’ for hearing. Though found that the selection process was faulty for Collector’s decision was violation of natural justice (for they were not made parties in the appeal) upheld the selection and allowed the appeal holding as under:
“Approaching the home stretch, one question still remains:- Whether at this distance of time should the matter be remitted back to the Collector for a fresh enquiry? The selection is of the year 1998. By virtue of interim orders through out, the appellants have functioned in office and are discharging their duties for the past more than twenty five years. One of them has even superannuated. At this distance of time, it will not be in the interest of justice to remand the matter for a fresh enquiry.”
Justice J.K. Maheshwari upheld the decision to cancel the appointment of the appellants and opined that the first limb of natural justice i.e. ‘rule against bias’ was irrefutably proved, as reasonable likelihood of bias was established. The plea of non-impleadment was considered to be a useless formality. Unless prejudice is demonstrated, mere non-joinder at the initial stage does not violate the principles of natural justice.
Hence, the case was before the three-Judge Bench.
Supreme Court Final Verdict by Three-Judge-Bench
The Apex Court (three-judge-bench) considered three issues.They were the following:
A. Whether the selection is vitiated for violation of the first limb of natural justice i.e. rule against bias? B. Where it is a case of violation of the principle of audi alteram partem? Is demonstration of prejudice necessary to succeed with a claim of violation of the principle of audi alteram partem? C. Whether the breach of the principle of audi alteram partem at the original stage can be cured, at the Revisional stage?
The first issue (related to nepotism, corruption and bias, in the selection process) is answered in favour of the selected persons (Appellants) as under –
“The selection is not vitiated on account of violation of the nemo judex rule”.
The second issue (related to Collector’s decision – whether violation of natural justice, for the selected persons were not heard by him, before taking a decision against them) is also answered in favour of the (Appellants) as under –
“In the absence of notice, the breach strikes at the fundamental core of procedural fairness, rendering the decision invalid unless exceptional circumstances justify such deviation. The vitiation of selection was not only a breach of the principles of natural justice but also contrary to the express statutory provision that required for an opportunity to show cause and an opportunity to provide self-defence. The prejudice theory must be understood as an exception to the general rule and cannot therefore be the norm. In view of the foregoing, a gross violation of the principle of audi alteram partem is noticed in the present case.”
The third issue related to Collector’s decision – the selected persons (Appellants) were not heard by him. This allegation of the selected persons was resisted by the Respondents/petitioners saying that the defect had been cured by the proceedings before the revisional/appellate body. It is also answered in favour of the selected persons (Appellants) as under –
” … it must be concluded that a defect at the initial stage cannot generally be cured at the appellate stage. Even in cases where a ‘full jurisdiction’ may be available at the appellate stage, the Courts must have the discretion to relegate it to the original stage for an opportunity of hearing. Therefore, the ex-parte decision to set aside the appellants selection stands vitiated.”
The Court, in Conclusion, upheld the opinion of Justice KV Vishwanathan, observing as under:
“68. The principle of audi alteram partem is the cornerstone of justice, ensuring that no person is condemned unheard. This principle transforms justice from a mere technical formality into a humane pursuit. It safeguards against arbitrary decision-making, and is needed more so in cases of unequal power dynamics [Upendra Baxi, ‘Preface: The Myth and Reality of the Indian Administrative Law’, in IP Massey(ed) ‘Administrative Law’ (8th edn, EBC 2012)].
69. An allegation of bias, can only be proved if facts are established after giving an opportunity of hearing. This process requires a fair and transparent procedure in which the concerned parties are given an adequate opportunity to present their case. Such an opportunity allows the accused party or the affected individuals to respond to the allegations, provide evidence, and clarify any misgivings regarding the decision-making process. Therefore, for an allegation of bias to be proved, it is imperative that the procedural safeguards of a fair hearing are observed allowing for establishment of the relevant facts.”
ISSUE A : Authorities Referred to.
This issue related to nepotism, corruption and bias, in the selection process.
AK Kraipak v Union of India, (1969) 2 SCC 262
When a statute specifies the procedure for administrative decision making, the principles of natural justice supplement do not substitute the statutory procedure. However, even if the statute does not provide for the administrative procedure, the authorities are bound to make decisions in adherence to the principles of natural justice.
Dimes v. Proprietors of the Grand Junction Canal(1852) 3 HLC 759
The principle of nemo judex causa sua found its origin in English law. In this decision the House of Lords in a case concerning pecuniary interest observed that the rule against bias extends not only to actual bias but also to the appearance of bias. This principle was later extended to other forms of interest in R v. Sussex Justices ex parte McCarthy [1924] 1 KB 256 where it was held that ‘even a suspicion that there has been improper interference with the course of justice’, would lead to the vitiation of proceedings. Lord Hewart noted that it is of fundamental importance that justice should not only be done, but should manifestly and undoubtedly be seen to be done. Lord Denning in Metropolitan Properties Co. (FGC) v Lannon(1969) 1 QB 577 noted that, ‘if right minded persons would think that, in the circumstances, there was a ‘real likelihood of bias’ on his part, he should not sit. And if he does sit, his decision does not stand’. It was further held that ‘there must be circumstances from which a reasonable man would think it likely or probable that the justice, or chairman as the case may be, would, or did, favour one side at the expense of the other.’
R v Gough 1993 AC 646
The emphasis on ‘likely or probable’ as noted by Lord Denning, was considered in R v Gough 1993 AC 646 where the Court shifted the focus to the possibility of bias rather than its probability. The test articulated in Gough(supra), was whether there was a ‘real danger of bias’ rather than a ‘real likelihood’ of bias. It prioritised the court’s assessment of bias over the perception of a fair-minded and informed observer emphasising that the court ‘personifies the reasonable man’. This test was criticised in other common law jurisdictions for veering away from the public perception of bias.
Porter v Magill(2002) 1 All ER 465
The House of Lords modified the said test in Porter v Magill (2002) 1 All ER 465 and pronounced as under:
“The Court must first ascertain all the circumstances which have a bearing on the suggestion that the judge was biased, it must then ask whether those circumstances would lead to a fair minded and informed observer to conclude that there was a real possibility that the Tribunal was biased.”
Manak Lal v Dr. Prem Chand Singhvi 1957 SCC OnLine SC 10;
Also:
Ranjit Thakur v. Union of India (1987) 4 SCC 611;
Rattan Lal Sharma v. Managing Committee, Dr. Hari Ram (Co-Education) Higher Secondary School, (1993) 4 SCC 10;
S Parthasarathi v. State of AP (1974) 3 SCC 459;
SK Golap and others v Bhuban Chandra Panda 1990 SCC OnLine Cal 264;
GN Nayak v Goa University (2002) 2 SCC 712.
Indian Courts have consistently adopted the ‘real likelihood’ test to determine bias
CORE (Central Organisation for Railway Electrification v. M/s ECI SPIC SMO MCML 2024 SCC OnLine SC 3219) –
A Constitution bench speaking through DY Chandrachud CJ summarised the Indian position thus:
“Although there have been vacillations about the test in England, the Indian courts have been largely consistent in their approach by applying the test of real likelihood of bias or reasonable apprehension of bias. Recently, the court has used the real danger of bias test. However, the above discussion shows that there is no significant difference between the real danger of bias test and the real possibility of bias test if the question of bias is inferred from the perspective of a reasonable or fair-minded person.”
Union of India v Tulsiram Patel, (1985) 3 SCC 398; Swadesh Cotton Mills v Union of India, (1981) 1 SCC 664 .
The nemo judex rule is subject to the rule of necessity and yields to it.
J Mohapatra v State of Orissa, (1984) 4 SCC 103
The doctrine of necessity serves as an exception to the rule against bias.
Charanjit Singh v Harinder Sharma(2002) 9 SCC 732
In a small town like Mansa, it would be difficult to constitute a Selection Committee of total strangers. The relative of some candidate or the other is bound to find a place on the Committee. Therefore, the Court is required to see whether the prescribed balancing mechanism was followed when a relative of the member of the Selection Committee was being considered.
A.K. Kraipak & Ors. V. Union of India , (1969) 2 SCC 262
Significantly expanded the scope of judicial review of administrative decisions. It is Cited in Javid Rasool Bhat v. State of Jammu & Kashmir(1984) 2 SCC 682 where distinguished Kraipak(supra) as under:
“Great reliance was placed by the learned counsel on A.K. Kraipak & Ors. V. Union of India on the question of natural justice. We do not think that the case is of any assistance to the petitioners. It was a case where one of the persons, who sat as member of the Selection Board, was himself one of the persons to be considered for selection. He participated in the deliberations of the Selection Board when the clams of his rivals were considered. He participated in the decisions relating to the orders of preference and seniority. He participated at every stage in the deliberations of the Selection Board and at every stage there was a conflict between his interest and duty. The court had no hesitation coming to the conclusion that there was a reasonable likelihood of ibis and therefore, there was a violation of the principles of natural justice. In the case before us, the Principal of the Medical College, Srinagar, dissociated himself from the written test and did not participate in the proceedings when his daughter was interviewed. When the other candidates were interviewed, he did not know the marks obtained either by his daughter or by any of the candidates. There was no occasion to suspect his bona fides even remotely. There was not even a suspicion of bias, leave alone a reasonable likelihood of bias. There was no violation of the principals of natural justice.”
Ashok Kumar Yadav v State of Haryana (1985) 4 SCC 417
A five-judge constitution bench of this Court endorsed the decision in Javed Rasool(supra) and held that when a near relative of a member of the Public Service Commission is a member of the Selection Committee, it will be enough if the concerned member desists from interviewing his relation. He should withdraw from the committee when his relative appears for the interview and he should not participate in discussion in regards to the merit of the candidate and even the marks should not be disclosed to the concerned member.
Jaswant Singh Nerwal v State of Punjab 1991 Supp (1) SCC 313,
The father of one of the selected candidates was in the selection committee conducting the interview. However, he did not participate in the deliberation when his son appeared for viva voce. It was held therein that selection was thus not vitiate
ISSUE B : Authorities Referred to.
This issue related to Collector’s decision – whether violation of natural justice, for the selected persons were not heard by him, before taking a decision against them.
Ridge v Baldwin[1964] AC 40
It is a significant landmark decision in British administrative law and is often referred to as a magna carta of natural justice.
Mohinder Singh Gill v. Chief Election Commr (1978) 1 SCC 405. It is held as under:
“Today in our jurisprudence, the advances made by natural justice far exceed old frontiers and if judicial creativity belights penumbral areas, it is only improving the quality of government by injecting fair play into its wheels.. law lives not in a world of abstractions but in a cosmos of concreteness and to give up something good must be limited to extreme cases. If to condemn unheard is wrong, it is wrong except where it is overborne by social necessity.”
Swadeshi Cotton Mills v. Union of India(1981) 1 SCC 664. It is held as under:
“This rule of fair play must not be jettisoned save in very exceptional circumstances where compulsive necessity so demands. The Court must make every effort to salvage this cardinal rule to the maximum extent possible, with situational modifications.”
Maneka Gandhi v Union of India(1978) 1 SCC 248
Justice Bhagwati, described natural justice as a profound ‘humanising principle’ designed to imbue the law with fairness and ensure justice.
Wade and Forsyth H W R Wade and C F Forsyth, Administrative Law (Oxford University Press, 11th ed, 2014). It is held as under:
“Judges are naturally inclined to use their discretion when a plea of natural justice is used as the last refuge of a claimant with a bad case. But that should not be allowed to weaken the the basic principle that fair procedure comes first, and that it is only after hearing both sides that merits can be properly considered. In the case of a tribunal which must decide according to, it may be justifiable to disregard a breach of natural justice where the demerits of the claim are such that it would in any case be hopeless. But in the case of a discretionary administrative decision, such as dismissal of a teacher or expulsion of a student, hearing their case will often soften the heart of the authority and alter their decision, even though it is clear from the outset that punitive action would be justified. This is the essence of a good and considerate administration, and the law should take care to preserve it.”
Olga Tellis v. Bombay Municipal Corporation (1985) 3 SCC 545)
The opportunity of hearing is considered so fundamental to any civilised legal system that the courts have read the principles of natural justice into an enactment to save it from being declared unconstitutional on procedural grounds
SL Kapoor v Jagmohan(1980) 4 SCC 379
Justice Chinappa Reddy, considered such arguments to be ‘pernicious’ and held that ‘the non-observance of natural justice is itself prejudice to any man and proof of prejudice independently of proof of denial of natural justice is unnecessary’. The Court, however, has drawn out an exception where ‘on admitted or indisputable facts only one conclusion is possible, and under the law, only one penalty is permissible, then the Court may not compel the observance of natural justice’ (Also Referred: Swadeshi Cotton Mills v Union of India (1981) 1 SCC 664; Aligarh Muslim University v Mansoor Ali Khan (200) 7 SCC 529).
Professor I.P. Massey, Administrative Law (8th Edition,2012). It is held as under:
“Before the decision of the Highest Court in SL Kapoor v Jagmohan, the rule was that the principles of natural justice shall apply only when the an administrative action has caused some prejudice to the person, meaning thereby that he must have suffered some ‘civil consequences’.
Therefore, the person had to show something extra in order to prove ‘prejudice’ or civil consequences. This approach had stultified the growth of administrative law within an area of highly practical significance. It is gratifying that in Jagmohan, the Court took a bold step in holding that a separate showing of prejudice is not necessary. The non-observance of natural justice is in itself prejudice caused. However, merely because facts are admitted or are undisputable it does not follow that the principles of natural justice need not be observed.”
Bank of Patiala v SK Sharma, (1996) 3 SCC 364
Where an enquiry is not convened by any statutory provision and the only obligation of the administrative authority is to observe the principles of natural justice, the Court/tribunal should make a distinction between a total violation of the rule of fair hearing and violation of the facet of that rule. In other words, a distinction must be made between ‘no opportunity’ or ‘no adequate opportunity’. In the case of the former, the order passed would undoubtedly be invalid and the authority may be asked to conduct proceedings afresh according to the rule of fair hearing. But in the latter case, the effect of violation of a facet of the rule of fair hearing has to be examined from the standpoint of prejudice.
Dharampal Satyapal Ltd. v. Dy. Comm. Of Central Excise, Gauhati and Ors. (2015) 8 SCC 519. It is held as under:
“42. So far so good. However, an important question posed by Mr Sorabjee is as to whether it is open to the authority, which has to take a decision, to dispense with the requirement of the principles of natural justice on the ground that affording such an opportunity will not make any difference? To put it otherwise, can the administrative authority dispense with the requirement of issuing notice by itself deciding that no prejudice will be caused to the person against whom the action is contemplated? Answer has to be in the negative. It is not permissible for the authority to jump over the compliance of the principles of natural justice on the ground that even if hearing had been provided it would have served no useful purpose. The opportunity of hearing will serve the purpose or not has to be considered at a later stage and such things cannot be presumed by the authority. This was so held by the English Court way back in the year 1943 in General Medical Council v. Spackman [1943 AC 627].
This Court also spoke in the same language in Board of High School and Intermediate Education v. Chitra Srivastava [(1970) 1 SCC 121]……”
State of UP v Sudhir Kumar Singh(2021) 19 SCC 706
The position of law was summarised as under:
“(1) Natural justice is a flexible tool in the hands of the judiciary to reach out in fit cases to remedy injustice. The breach of the audi alteram partem rule cannot by itself, without more, lead to the conclusion that prejudice is thereby caused.
(2) Where procedural and/or substantive provisions of law embody the principles of natural justice, their infraction per se does not lead to invalidity of the orders passed. Here again, prejudice must be caused to the litigant, except in the case of a mandatory provision of law which is conceived not only in individual interest, but also in public interest.
(3) No prejudice is caused to the person complaining of the breach of natural justice where such person does not dispute the case against him or it. This can happen by reason of estoppel, acquiescence, waiver and by way of non-challenge or non-denial or admission of facts, in cases in which the Court finds on facts that no real prejudice can therefore be said to have been caused to the person complaining of the breach of natural justice.
(4) In cases where facts can be stated to be admitted or indisputable, and only one conclusion is possible, the Court does not pass futile orders of setting aside or remand when there is, in fact, no prejudice caused. This conclusion must be drawn by the Court on an appraisal of the facts of a case, and not by the authority who denies natural justice to a person.
(5) The “prejudice” exception must be more than a mere apprehension or even a reasonable suspicion of a litigant. It should exist as a matter of fact, or be based upon a definite inference of likelihood of prejudice flowing from the non-observance of natural justice.”
Madhyamam Broadcasting Ltd. v. Union of India(2023) 13 SCC 401. It is held as under:
“55.1.Firstly, procedural fairness was no longer viewed merely as a means to secure a just outcome but a requirement that holds an inherent value in itself. In view of this shift, the courts are now precluded from solely assessing procedural infringements based on whether the procedure would have prejudiced the outcome of the case. [S.L. Kapoor v. Jagmohan, (1980) 4 SCC 379; “The non-observance of natural justice is itself prejudice to any man and proof of prejudice independently of proof of denial of natural justice is unnecessary; also see Swadeshi Cotton Mills v. Union of India, (1981) 1 SCC 664 : AIR 1981 SC 818] Instead, the courts would have to decide if the procedure that was followed infringed upon the right to a fair and reasonable procedure, independent of the outcome. In compliance with this line of thought, the courts have read the principles of natural justice into an enactment to save it from being declared unconstitutional on procedural grounds. [Olga Tellis v. Bombay Municipal Corpn., (1985) 3 SCC 545; C.B. Gautam v. Union of India, (1993) 1 SCC 78; Sahara India (Firm) (1) v. CIT, (2008) 14 SCC 151; Kesar Enterprises Ltd. v. State of U.P., (2011) 13 SCC 733]
55.2. Secondly, natural justice principles breathe reasonableness into the procedure. Responding to the argument that the principles of natural justice are not static but are capable of being moulded to the circumstances, it was held that the core of natural justice guarantees a reasonable procedure which is a constitutional requirement entrenched in Articles 14, 19 and 21. The facet of audi alteram partem encompasses the components of notice, contents of the notice, reports of inquiry, and materials that are available for perusal.
While situational modifications are permissible, the rules of natural justice cannot be modified to suit the needs of the situation to such an extent that the core of the principle is abrogated because it is the core that infuses procedural reasonableness. The burden is on the applicant to prove that the procedure that was followed (or not followed) by the adjudicating authority, in effect, infringes upon the core of the right to a fair and reasonable hearing. [See para 12 of Bhagwati, J.’s judgment in Maneka Gandhi v. Union of India, (1978) 1 SCC 248]”
CORE (Central Organisation for Railway Electrification v. M/s ECI SPIC SMO MCML 2024 SCC OnLine SC 3219. It is held as under:
The five judge bench described the object of observing the principles of natural justice as under:
“80. …The object of observing the principles of natural justice is to ensure that “every person whose rights are going to be affected by the proposed action gets a fair hearing.” The non-observance of natural justice is itself a prejudice to any person who has been denied justice depending upon the facts and circumstances of each case. The principle of procedural fairness is rooted in the principles of the rule of law and good governance. In Madhyamam Broadcasting Limited v. Union of India(2023) 13 SCC 401 , this Court held that the requirement of procedural fairness “holds an inherent value in itself.”
State Govt. Houseless Harijan Employees Association v State of Karnataka (2001) 1 SCC 610
The question about whether prejudice was caused due to non-observance of the principles of natural justice could not be raised where such principles are incorporated into statutory procedure.
Considering the above, Justice Vishwanathan noted as under:
“At least at the stage when the Collector identified all the 14 names, Rule 9 of the A&R Rules, ought to have been complied with and notices ought to have been issued giving an opportunity to the selected candidates to set out their version and thereafter hold such enquiry as the Collector may deem necessary. This was also not done. This is all the more when only the appointment of the 14 candidates of the 249 appointees/candidates were set aside on the ground that 33 they were relatives and it was not a case of setting aside of the entire selection.
It is well settled that in service matters when an unsuccessful candidate challenges the selection process, in a case like the present where the specific grievance was against 14 candidates under the category of relatives and when the overall figure was only 249, at least the candidates against whom specific allegations were made and who were identified ought to have been given notices and made a party. This Court has, even in cases where the selected candidates were too large, unlike in the present case, held that even while adjudicating the writ petitions at least some of the selected candidates ought to be impleaded even it is in a representative capacity. It has also been held that in service jurisprudence, if an unsuccessful candidate challenges the selection process the selected candidates ought to be impleaded. [See J.S. Yadav vs. State of Uttar Pradesh and Another, (2011) 6 SCC 570 (para 31) and Prabodh Verma and Others vs. State of Uttar Pradesh and Others, (1984) 4 SCC 251 (para 28) and Ranjan Kumar and Others vs. State of Bihar and Others, 2014:INSC:276 = (2014) 16 SCC 187 (paras 4,5,8,9 & 13)] This is not a case where the allegation was that the mischief was so widespread and all pervasive affecting the result of the selection in a manner as to make it difficult to sift the grain from the chaff. It could not be said and it is not even the case of the State that it was not possible to segregate the allegedly tainted candidates from the untainted candidates. [See Union of India and Others vs. G. Chakradhar, (2002) 5 SCC 146 (paras 7 & 8), Abhishek Kumar Singh vs. G. Pattanaik and Others, 2021:INSC:305 = (2021) 7 SCC 613 (para 72).”
East India Commercial Co. Ltd. v. Collector of Customs AIR 1962 SC 1893; Uma Nath Pandey and Ors. v state of UP (2009) 12 SCC 40
Clear distinction has been crafted between the service of notice and the requirement of fair hearing.
Ridge vs. Baldwin1964 AC 40
Referring this classic case it was recorded that where there is a total violation of principles of natural justice, the violation would be of a fundamental nature. It did not deal with the violation of the first limb of audi alteram partem principles, a situation of non-service of notice. The judgment in fact explicitly records that “a distinction ought to be made between violation of the principle of natural justice, audi alteram partem, as such, and violation of a facet of the said principle. In other words, distinction between “no notice” “no hearing” and “no adequate hearing” or to put it in different words, “no opportunity” and “no adequate opportunity”, was highlighted. The judgement in SK Sharma (supra) is therefore inapplicable to the present matter which is a case of no notice whatsoever.
ISSUE C : Authorities Referred to.
This issue related to Collector’s decision – the selected persons (Appellants) were not heard by him. Therefore, whether the defect had been cured (Calvin principle) by the proceedings before the revisional body.
High Court of Australia in Australian Workers’ Union v Bowen (No. 2) (1948) 77 C.L.R. 601.
Bowen contested his dismissal by the General Council of the Union, claiming bias because the Union Secretary acted as both prosecutor and judge. While the Commonwealth Court of Conciliation and Arbitration ruled in his favour, the decision was overturned on appeal. The appellate court held that the Secretary’s role did not violate the rule against bias and, even if it had, any flaw in the original proceedings was remedied by a fair appeal to the Annual Conference, which Bowen did not dispute.
Lord Denning in Annamunthodo v Oilfield Workers’ Trade Union [1961] AC 945 (PC)
It was ruled that a flaw in natural justice during the initial hearing could not be remedied by an appeal.
Leary v. National Union of Vehicle Builders(1970) 2 All ER 713
It is a leading authority on the point that a failure of natural justice at the initial stage cannot be cured at the appellate stage. The case involved the plaintiff’s expulsion by a Branch Committee of his trade union, at a meeting about which he was unaware. He approached the Appeals Council for relief against the order of the branch Committee, which conducted a full rehearing but upheld the Branch Committee’s decision. The plaintiff then filed a writ, seeking declarations that his expulsion from union membership as well as his position as area organizer was unlawful, invalid, and void. Megarry J framed the question thus:
“if a man has never had a fair trial by the appropriate trial body, is it open to an appellate body to discard its appellate function and itself give the man the fair trial that he has never had?. If the rules and the law combine to give the member the right to a fair trial and the right of appeal, why should he be told that he ought to be satisfied with an unjust trial and a fair appeal?… Even if the appeal is treated as a hearing de novo, the member is being stripped of his right to appeal to another body from the effective decision to expel him’
It was held that the proper course in such a situation would be to hear the matter afresh:
“If one accepts the contention that a defect of natural justice in the trial body can be cured by the presence of natural justice in the appellate body, this has the result of depriving the member of his right of appeal from the expelling body. If the rules and the law combine to give the member the right to a fair trial and the right of appeal, why should he be told that he ought to be satisfied with an unjust trial and a fair appeal? Even if the appeal is treated as a hearing de novo, the member is being stripped of his right to appeal to another body from the effective decision to expel him. I cannot think that natural justice is satisfied by a process whereby an unfair trial, though not resulting in a valid expulsion, will nevertheless have the effect of depriving the member of a right of appeal when a valid decision to expel him is subsequently made. Such a deprivation is a powerful result to be achieved by what in law is a mere nullity; and it is no mere triviality that might be justified on the ground that natural justice does not mean perfect justice. As a general rule, at all events, I hold that a failure of natural justice in the trial body cannot be cured by a sufficiency of natural justice in an appellate body.”
Calvin v Carr (1979) 2 WLR 755
The Judicial Committee of the Privy Council only gave a qualified endorsement to the Leary principle. In Lloyd v McMahon(1987) 1 AC 625, Lord Templeman considered the Calvin principle but commented that instead of laying down general principles, the question arising in that case must be answered by considering the particular statutory provisions applicable therein. In that case, a distinction was drawn between full appeals where all the evidence may be examined and limited appeals on questions of law only or where the appellate body does not investigate findings of fact.
Indian courts have applied the Leary principle as a rule. See:
Institute of Chartered Accountants v. L. K. Ratna (1986) 4 SCC 537;
Fareed Ahmed v Ahmedabad Municipality AIR 1976 SC 2095;
Shri Mandir Sita Ramji v Government of Delhi (1975) 4 SCC 298;
Mysore SRT Corp v Mirza Khasim AIR 1977 SC 747;
Laxmidhar v State of Orissa AIR 1974 Ori 127;
Kashiram Dalmia v State AIR 1978 Pat 265;
G Rajalakshmi v Appellate Authority AIR 1980 AP 100;
Serajuddin Co. v State of Orissa AIR 1974 Cal 296 .
And the Calvin principle as an exception. See:
Charan Lal Sahu v Union of India, (1990) 1 SCC 613;
Jayantilal Ratanchand Shah v Reserve Bank of India, (1996) 9 SCC 650;
United Planters’ Association of Southern India v KG Sangameswaran, (1997) 4 SCC 741
This is more so due to the institutional structure as the writ court does not usually go into facts and judicial review of administrative action is limited to the decision-making process and not the decision itself. In our view, the provision for an appeal should not rest on the assumption that the appellate body is infallible. When one party is denied the opportunity to present their case, the initial decision fails to provide meaningful guidance to the appellate authority, in achieving a fair and just resolution.
Professor Wade H. W. R. Wade, Administrative Law ((Oxford: Clarendon Press 1982)
It is observed as under:
“In principle, there ought to be an observance of natural justice at both stages… If natural justice is violated at the first stage, the right to appeal is not so much a true right to appeal as a corrected initial hearing: instead of fair trial followed by appeal., the procedure is reduced to an unfair trial followed by fair trial.”
Professor Laurence Tribe Lawrence H. Tribe, ‘American Constitutional Law’ ((The Foundation Press 1978)
It is pertinently observed that whatever the outcome, a valued human interaction in which the affected person experiences atleast the satisfaction of participating in the decision that vitally concerns her is of utmost importance:
“Both from the right to be heard and the right to be told why, are analytically distinct from the right to secre a different outcome; these rights to interchange express the elementary idea that to be a person, rather than a thing, is at atleast to be consulted about what is done with one.”
Institute of Chartered Accountants v. L. K. Ratna, 1986-4 SCC 537
The Supreme Court endorsed the position adopted by Megarry J. Rejecting the argument that an appeal to the High Court under Section 22A of the Chartered Accountants Act, 1949, could rectify the initial defect, Pathak J. declared the order null, void, and of no effect. This ruling was consistent with two earlier Supreme Court decisions in State of U.P. v. Mohammed Nooh1958 SCR 595 and Mysore State Road Transport Corporation v. Mirja Khasim (1977) 2 SCC 457, both of which established that an appeal cannot validate what is clearly a nullity.
Charan Lal Sahu v Union of India(1990) 1 SCC 613
The Supreme Court has invoked the Calvin principle only in exceptional circumstances. It is a case concerning a challenge to the validity of the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985, the Court applied the Calvin principle, given the fact that the settlement fund was held to be sufficient to meet the needs of just compensation to the victims of the Bhopal gas leak tragedy, it was held that the grievance on the score of not hearing the victims first would not really survive. It recorded that “to do a great right” after all it is permissible sometimes “to do a little wrong”.
Conclusion
In this case, the Apex Court did not apply the Calvin principle, and the doctrine “to do a great right” it is permissible sometimes “to do a little wrong”. The Court was of the opinion that it is not a fit case to apply these principles as they are applied “only in exceptional circumstances“. The Court definitely found that violation of Natural Justice is ‘serious’. It is expressed in the following words –
“67. Following the above discussion, it must be concluded that a defect at the initial stage cannot generally be cured at the appellate stage. Even in cases where a ‘full jurisdiction’ may be available at the appellate stage, the Courts must have the discretion to relegate it to the original stage for an opportunity of hearing. Therefore, the ex-parte decision to set aside the appellants selection stands vitiated.”
Finally, the Court (though did not apply the Calvin Principle) allowed the appeal in favour of the appointees (not ‘paradoxically’; but, on sound judicial principles) observing as under:
“71. Since the selection pertains to the year 1998, and the appellants have continuously held office and performed their duties for over twenty-five years under interim orders, remanding the matter for a fresh inquiry would hardly be a practical exercise and will be an injustice to the appointees. The time lag can be better appreciated by bearing in mind that one of the appellants has already superannuated.”
Supreme Court of India on January 29, 2025, in H. Anjanappa v. A. Prabhakar (J.B. Pardiwala, R. Mahadevan, JJ.) held –
“Where a judgment and decree prejudicially affects a person who is not a party to the proceedings, he can prefer an appeal with the leave of the court”.
It is also pointed out that the injury complained of must not be “remote or indirect”.
The Apex Court pointed out two interesting propositions in this regard:
1. The Applicant must be “bound by the decree or judgment in that proceeding and who would be precluded from attacking its correctness in other proceedings”.
2. The applicant must be “a person who might properly have been a party”.
Part I
Facts in a Nutshell
The Plaintiffs had entered into an agreement for sale of the suit property owned by the defendants.
The Plaintiffs filed the suit for specific performance.
One of the Defendants sold a portion of property to Respondents 1 & 2.
The sale was in contravention of the injunction order, in that case.
IA filed by Respondents 1 & 2 to implead themselves as Defendants was rejected.
(No appeal therefrom; and “thereby, the said issue has attained finality”.)
The suit was decreed allowing Specific Performance.
The High Court dismissed the appeal (filed by the defendants).
After about 2 years of the Judgment and 11 years from filing the Impleadment Application, the subsequent purchasers, Respondents 1 & 2, filed Applications before the High Court, challenging the Decree and praying to condone the delay of 586 days, seeking leave of the Court to file the appeal .
This prayer was allowed.
Hence the Plaintiffs filed SLP before the Apex Court.
The Apex Court allowed the appeal.
Law Governing The Grant Of Leave To Appeal
Sections 96 and 100 respectively of the Code of Civil Procedure, 1908 provide for preferring an appeal from any original decree or from decree in appeal respectively.
The Apex Court pointed out that the aforesaid provisions do not enumerate the categories of persons who can file an appeal. The Court proceeded into the issue analysing the following two well-founded legal propositions –
A stranger cannot be permitted to file an appeal in any proceedings unless he satisfies the court that he falls within the category of aggrieved persons.
It is only where a judgment and decree prejudicially affects a person who is not a party to the proceedings, he can prefer an appeal with the leave of the appellate court.
Part II
Earlier decisions and authorities referred to:
Sri V.N. Krishna Murthy v. Sri Ravikumar (Civil Appeal Nos.2701-2704 of 2020, decided on 21st August 2020)].
Nagendra Nath Dey v. Suresh Chandra Dey, AIR 1932 PC 165.
Adi Pherozshah Gandhi v. H.M.Seervai, AIR 1971 SC 385
Shanti Kumar R. Canji v. Home Insurance Co. of New York, (1974) 2 SCC 387
State of Rajasthan v. Union of India, (1977) 3 SCC 592
In re Markham Markham vs. Markham, (1881) 16 Ch D 1;
In re Padstow Total Loss and Collision Assurance Association, (1882) 20 Ch. D 137
Attorney General vs. Marquis of Ailesbury, (1885) 16 QBD 408
In re Ex Tsar of Bulgaria, (1921) 1 Ch D 107
Annual Practice for 1951 at page 1244
Halsbury’s Laws of England, Vol. 26, page 115.
Seton on Judgments and Orders, 7th Edn., Vol. 1, at p. 824.
No Definition Of ‘Appeal‘
The five-Judge Bench of the Privy Council in Nagendra Nath Dey v. Suresh Chandra Dey, AIR 1932 PC 165, speaking through Sir Dinshaw Mulla observed that there is no definition of appeal in the CPC, but there is no doubt that any application by a party to an appellate Court, asking it to set aside or revise a decision of a subordinate Court, is an appeal within the ordinary acceptation of the term, and that it is no less an appeal because it is irregular or incompetent.
Applicant must have been aggrieved by an order or causes him some prejudice
A person who is not a party to a litigation has no right to appeal merely because the judgment or order contains some adverse remarks against him
In Adi Pherozshah Gandhi v. H.M. Seervai, AIR 1971 SC 385, the Constitution Bench of the Apex Court held as under:
“46. Generally speaking, a person can be said to be aggrieved by an order which is to his detriment, pecuniary or otherwise or causes him some prejudice in some form or other. A person who is not a party to a litigation has no right to appeal merely because the judgment or order contains some adverse remarks against him. But it has been held in a number of cases that a person who is not a party to suit may prefer an appeal with the leave of the appellate court and such leave would not be refused where the judgment would be binding on him under Explanation 6 to section 11 of the Code of Civil Procedure.”
A Higher Court is Not Precluded from Considering Order in IA again at a Later Stage
In Smt. Sukhrani v. Hari Shanker, AIR 1979 SC 1436, an interlocutory order was not challenged. The same was challenged after the final order was passed by the court. It was held as under:
“5. It is true that at an earlier stage of the suit, in the proceeding to set aside the award, the High Court recorded a finding that the plaintiff was not entitled to seek reopening of the partition on the ground of unfairness when there was neither fraud nor misrepresentation. It is true that the plaintiff did not further pursue the matter at that stage by taking it in appeal to the Supreme Court but preferred to proceed to the trial of his suit. It is also true that a decision given at an earlier stage of a suit will bind the parties at later stages of the same suit. But it is equally well settled that because a matter has been decided at an earlier stage by an interlocutory order and no appeal has been taken therefrom or no appeal did lie, a higher Court is not precluded from considering the matter again at a later stage of the same litigation.”
Leave Should Be Granted If Applicant Would Be Prejudicially Affected
In Smt. Jatan Kumar Golcha vs. Golcha Properties Private Limited, (1970) 3 SCC 573 it was held as under:
“It is well settled that a person who is not a party to the suit may prefer an appeal with the leave of the Appellate Court and such leave should be granted if he would be prejudicially affected by the Judgment.”
Applicant must Be bound by the order or is aggrieved or is prejudicially affected
In State of Punjab v. Amar Singh, (1974) 2 SCC 70, while dealing with the maintainability of appeal by a person who is not party to a suit, has observed thus:
“Firstly, there is a catena of authorities which, following the dictum of Lindley, L.J., in re Securities Insurance Co., [(1894) 2 Ch 410] have laid down the rule that a person who is not a party to a decree or order may with the leave of the Court, prefer an appeal from such decree or order if he is either bound by the order or is aggrieved by it or is prejudicially affected by it.”
Person Aggrieved Must Be One Whose Right Is Affected By The Judgment
In Baldev Singh v. Surinder Mohan Sharma, (2003) 1 SCC 34, it is held that an appeal under Section 96 of the CPC would be maintainable only at the instance of a person aggrieved by and dissatisfied with the judgment and decree. While dealing with the concept of person aggrieved, it was observed in paragraph 15 as under:
“A person aggrieved to file an appeal must be one whose right is affected by reason of the judgment and decree sought to be impugned.”
Consider Nature And Extent Of Injuries Suffered
In A. Subash Babu v. State of A.P., (2011) 7 SCC 616, it is held as under:
“The expression ‘aggrieved person’ denotes an elastic and an elusive concept. It cannot be confined that the bounds of a rigid, exact and comprehensive definition. Its scope and meaning depends on diverse, variable factors such as the content and intent of the statute of which contravention is alleged, the specific circumstances of the case, the nature and extent of the complainant’s interest and the nature and extent of the prejudice or injuries suffered by him.”
Person aggrieved must have jeopardized; Not an imaginary injury
Referring Shanti Kumar R. Canji v. Home Insurance Co. of New York, (1974) 2 SCC 387 and State of Rajasthan v. Union of India, (1977) 3 SCC 592, it is observed that the expression ‘person aggrieved’ does not include a person who suffers from a psychological or an imaginary injury; but, it must, therefore, necessarily be one, whose right or interest has been adversely affected or jeopardized.
Test Whether Precluded From Attacking in Other Proceedings
Division Bench of the Madras High Court, in Srimathi K. Ponnalagu Ammani v. The State of Madras, AIR 1953 Mad 485, laid down the test to find out whether it would be proper to grant leave to appeal as under:
“Now, what is the test to find out when it would be proper to grant leave to appeal to a person not a party to a proceeding against the decree or judgment in such proceedings? We think it would be improper to grant leave to appeal to every person who may in some remote or indirect way be prejudicially affected by a decree or judgment. We think that ordinarily leave to appeal should be granted to persons who, though not parties to the proceedings, would be bound by the decree or judgment in that proceeding and who would be precluded from attacking its correctness in other proceedings.”
Court Of Appeal In Its Discretion Allows Third Party Appeal
In Province of Bombay v. W.I. Automobile Association, AIR 1949 Bom 141 (Chagla C.J. and Bhagwati J.), held as under:
“The Civil Procedure Code does not in terms lay down as to who can be a party to an appeal. But it is clear and this fact arises from the very basis of appeals, that only a party against whom a decision is given has a right to prefer an appeal. Even in England the position is the same. But it is recognised that a person who is not a party to the suit may prefer an appeal if he is affected by the order of the trial Court, provided he obtains leave from the Court of appeal; therefore whereas in the case of a party to a suit he has a right of appeal, in the case of a person not a party to the suit who is affected by the order he has no right but the court of appeal may in its discretion allow him to prefer an appeal.” (referred to: Indian Bank Limited, Madras v. Seth Bansiram Jashamal Firm through its Managing Partner, AIR 1934 Mad 360, In re Securities Insurance Company, (1894) 2 Ch D 410.)
The position is thus stated in the Annual Practice for 1951, at page 1244, as under:
“Persons not parties on the record may, by leave obtained on an ‘ex parte’ application to the Court of appeal, appeal from a judgment or order affecting their interests, as under the old practice.”
“A personwho might properly have been a party”
Halsbury’s Laws of England, Vol. 26, page 115, says as under:
“A person who is not a party and who has not been served with such notice (notice of the judgment or order) cannot appeal without leave, but a person who might properly have been a party may obtain leave to appeal.”
In ‘more or less similar terms, the rule and its limits are stated’ in Seton on Judgments and Orders, 7th Edn., Vol. 1, at p. 824:
“Where the appellant is not a party to the record he can only appeal by leave to be obtained on motion ‘ex parte’ from the Court of Appeal….. Leave to appeal will not be given to a person not a party unless his interest is such that he might have been made a party.” (Emphasis supplied)
The Apex Court Concluded this part of the decision in para 43 as under:
“43. The principles governing the grant of leave to appeal may be summarised as under:
i. Sections 96 and 100 of the CPC respectively provide for preferring an appeal from an original decree or decree in appeal respectively;
ii. The said provisions do not enumerate the categories of persons who can file an appeal;
iii. However, it a settled legal proposition that a stranger cannot be permitted to file an appeal in any proceedings unless he satisfies the court that he falls within the category of an aggrieved person;
iv. It is only where a judgment and decree prejudicially affects a person who is not a party to the proceedings, he can prefer an appeal with the leave of the court;
v. A person aggrieved, to file an appeal, must be one whose right is affected by reason of the judgment and decree sought to be impugned;
vi. The expression “person aggrieved” does not include a person who suffers from a psychological or an imaginary injury;
vii. It would be improper to grant leave to appeal to every person who may in some remote or indirect way be prejudicially affected by a decree or judgment; and viii. Ordinarily leave to appeal should be granted to persons who, though not parties to the proceedings, would be bound by the decree or judgment in that proceeding and who would be precluded from attacking its correctness in other proceedings.
Part III
Lis Pendens’ and Order I rule 10 CPC.
The Apex Court analysed the matter “from a different angle” – on ‘lis pendens’ (Section 52 of the Transfer of Property Act) and Order I rule 10 CPC, also.
Decisions Referred in this regard
Nagubai Ammal & Ors. vs. B. Shama Rao & Ors., AIR 1956 SC 593
Vinod Seth v. Devinder Bajaj, (2010) 8 SCC 1
Thomson Press (India) Ltd. v. Nanak Builders & Investors P. Ltd., [2013] 2 SCR 74
Smt. Saila Bala Dassi vs. Sm. Nirmala Sundari Dassi and Anr., [1958] SCR 1287
Dhurandhar Prasad Singh vs. Jai Prakash University, (2001) 6 SCC 534
Amit Kumar Shaw v. Farida Khatoon, AIR 2005 SC 2209.
The Apex Court Concluded this part of its decision in para 58 as under:
“58. From a conspectus of all the aforesaid judgments, touching upon the present aspect, broadly, the following would emerge:
.i. First, for the purpose of impleading a transferee pendente lite, the facts and circumstances should be gone into and basing on the necessary facts, the Court can permit such a party to come on record, either under Order I Rule 10 CPC or under Order XXII Rule 10 CPC, as a general principle;
ii. Secondly, a transferee pendente lite is not entitled to come on record as a matter of right;
iii. Thirdly, there is no absolute rule that such a transferee pendente lite, with the leave of the Court should, in all cases, be allowed to come on record as a party;
iv. Fourthly, the impleadment of a transferee pendente lite would depend upon the nature of the suit and appreciation of the material available on record;
v. Fifthly, where a transferee pendente lite does not ask for leave to come on record, that would obviously be at his peril, and the suit may be improperly conducted by the plaintiff on record;
vi. Sixthly, merely because such transferee pendente lite does not come on record, the concept of him (transferee pendente lite) not being bound by the judgment does not arise and consequently he would be bound by the result of the litigation, though he remains unrepresented;
vii. Seventhly, the sale transaction pendente lite is hit by the provisions of Section 52 of the Transfer of Property Act; and, viii. Eighthly, a transferee pendente lite, being an assignee of interest in the property, as envisaged under Order XXII Rule 10 CPC, can seek leave of the Court to come record on his own or at the instance of either party to the suit.”
In the process to take a fact ‘proved’, ‘disproved’, or ‘not proved’ the courts have to weigh probabilities. In Bater v Bater, (1950) 2 All ER 458, Lord Denning pointed out – ‘there is no absolute standard’, and higher degree of proof is required for more serious matters like criminal cases. Therefore, the courts apply different ‘STANDADARDS of Proof’ in different cases and the courts use distinctive scales in the judicial process of pondering on probabilities.
From the above, it can be concluded –
‘Proof of Documents’ envisaged in the Evidence Act is proof of ‘facts’ as to the ‘existence’ or ‘contents’ of a document.
TRUTH of contents of documents being remain in the judicial discretion, it could not have been expressly or directly dealt with in Evidence Act with precision.
According to Sec. 3 of the Evidence Act ‘a fact is said to be proved when, after consideringthe matters before it, the Court either BELIEVES it to exist, or CONSIDERS its existence so PROBABLE that a prudent man ought under the circumstances of the particular case to act upon the supposition that it exists …’.
According to Sec. 114 of the Evidence Act ‘the Court may presume the existence of any fact which it THINKS likely to have happened,regard being had to the common course of natural events, human conduct, and public and private business …’
That is, TRUTH (or otherwise) of a disputed point is left to the SUBJECTIVE SATISFATION of the court inasmuch as the question whether a fact is proved (or not) is left to the evaluation of the court. Further, the court is specifically required to appraise – how a prudent man in the given circumstances “acts upon“. The court is also authorised to presume the existence of any fact which it thinks likely to have happened “regard being had to thecommon course of natural events, human conduct” etc.
It is equally important – TRUTH of a disputed item is to be appreciated on the legal (subjective) reasoning after OBJECTIVE“considerationof the matters before it” (Sec. 3 Evid. Act).
Our Apex Court in Mahasay Ganesh Prasad Ray v. Narendra Nath Sen, AIR 1953 SC 431, while dealing with 30-year-old Book of Accounts, though it came from the possession of its keeper, held as under:
“3. … … … Exhibit 32 series as noticed by the High Court, consists of loose sheets of papers. They have not the probative force of a book of account regularly kept. Being old documents, naturally, the writer is not called and barring the fact that they were produced from the Receiver’s possession there is nothing to show their genuineness. Section 90, Evidence Act, does not help the appellants because this is not a case where the signature of a Particular person is in question or sought to be established. … …”.
In Harihar Prasad Singh v. Deonarain Prasad, AIR 1956 SC 305, the Apex Court observed as under:
“8. Strong reliance was placed by the respondents on Exhibits F-1 and F-1(1), which are khatians relating to the suit lands published on 7-12-1909, recording them as in the possession of the defendants of the second party as ‘kaimi’ and on the presumption under S. 103-B that entry is correct.
Court to invoke Presumptions Judiciously
In Rathish Babu Unnikrishnan v. State (Govt. of NCT of Delhi), 2023 CrLJ 311; 2022-4 JT 477; 2022-6 Scale 794; 2022-4 SCR 989, it is held as under:
“In any case, when there is legal presumption, it would not be judicious for the quashing Court to carry out a detailed enquiry on the facts alleged, without first permitting the trial Court to evaluate the evidence of the parties. The quashing Court should not take upon itself, the burden of separating the wheat from the chaff where facts are contested. To say it differently, the quashing proceedings must not become an expedition into the merits of factual dispute, so as to conclusively vindicate either the complainant or the defence.”
In Nepurjan Bibi Choudhury v. Musabbir Ali Choudhury, AIR 2018 Gau 151, it is emphasised as under:
“Court needs to exercise the discretion judiciouslywhile taking presumptionunder Section 90 of the Evidence Act, keeping in mind the underlying objectof the provision, being the necessity and convenience and also the precondition required for taking a presumption. Section 90 of the Evidence Act provides that before taking a presumption, two basic ingredients should be there, namely the document sought to be proved must be of 30 years old and it must be produced from proper custody.”
‘Loose and Unfettered Discretion is a Dangerous Weapon‘
In Naresh Chandra Mital v. Bishamber Nath Chopra, 1966-2 DLT 352, it is observed as under:
“The Court has in exercising its discretion to keep in view the desirability of facilitating speedy decisions of suits upon bills of exchange, promissory notes and hundis and also to keep in view the drastic nature of the provisions contained in Rules 2 and 3 of Order 37. The presumption of consideration in the case of negotiable instruments on the one hand and the plea of the defendant and the attending circumstances tending to discount such presumption have to be considered and weighed judiciously by the Court. In otherwords, the Court has to exercise judicial discretion, keeping in view the basic dictates of justice when determining the question whether or not to permit the defendant to contest the suit and if so, whether unconditionally or on terms and what terms. The idea of discretion, which is always to be exercised in a disciplined and responsible manner, really represents a compromise between the idea that those who possess power should be trusted with free hand and not tied down to narrow and rigid groves and the competing notion that loose and unfettered discretion is a dangerous weapon to entrust to any one including Courts.”
OldDocument: Recent Challenge – Vigor of Direct Evidence Need Not Be as Strong as might be Naturally Expected in a Recent Transaction.
In Jagna Sanyasiah v. Mycherla Peda Atchanna Naidu, AIR 1921 Mad 624, it is held as under:
“5. The respondents’ contention in their memorandum of objections would, in my opinion, have to be allowed as the passing of consideration for a document which is more than 30 years old and which was ever questioned till this suits was brought should be taken as proved even if the direct evidence is not as strong as might be naturally expected in respect of recent transactions.”
In Muthialpet Benefit Fund Ltd. v. V. Devarajulu Chetty, AIR 1955 Mad 455, it is held as under:
“7. To my mind, neither of the first two points is convincing because the first is based on the rather over-optimistic and facile profession of faith made in every minors suit that he the minor is going to win and to which the statistics of our Courts do not unfortunately lend any support and especially so in this case and in the circumstances set out above, which make out prima facie that the mortgagee public institution made proper and bona fide enquiry as to the existence of necessity and did all that was reasonable to satisfy itself as to the existence of such necessity. In such a case even if there was no necessity in fact or even if the money borrowed was not applied to meet the necessity, the alienation will be upheld. The recitals of necessity in the deed are admissible in evidence as admissions of the Manager or father and also amount to representation ofnecessity though in the case of RECENT TRANSACTIONS evidence aliunde** would be NORMALLY EXPECTED. These elementary propositions require no buttressing by citations (See Mulla, Hindu Law, Edn.10, p.285; Raghavachari: Hindu Law, Edn.3, p.335 and following; Mayne: Hindu Law, Edn.11, Re-print pp.474-475). Secondly, it is in the best interest of the mortgagors themselves to prevent the deterioration of the value of the corpus and market it into cash and keep the sale proceeds in Court pending and abiding the result of the suit.”
(**from other sources)
Proof is given to find truth of the evidence, for adjudicate the issues
Evidence is given to to establish the truth of the questions in controversy. It is necessary for the adjudication of the issues.
Following general propositions will show the nexus between Proof and Truth.
Evidence Act does notexpresslysay as to “TRUTH“: Indian Evidence Act and other procedural laws do not expressly say anything as to “TRUTH of contents” of documents.
Truth is left to the discretion of the court. In proper cases court can presume truth.
Presumption as to truth: Presumption as to truth of the contents of a (proved) document can be invoked in proper cases. Official record is taken as correct on the presumption that the entries thereof are made only after satisfying its truth.
Courts tosave the TRUTH: Function of the Court is to save the TRUTHfrom falsehood, and the Courts are created for the very object of finding the TRUTH.
Formal proof& Truth: Proof of documents includes –
formal proof, and
truth of its contents.
Proof by one who can vouchsafe: Generally, proof must be given through persons who can vouchsafe for the truth.
Subjective Satisfaction and Objective Consideration by the Court
It is evident from Sec. 3 of the Indian Evidence Act that TRUTH (or otherwise) of a disputed matter is left to the Subjective Satisfaction of the court. The definition of ‘proved’ in Sec. 3 of the Evidence Act says that ‘a fact is said to be proved when (after considering the matter before it) the court either believes it to exist, or considers its existence so probable that a prudent man ought, under the circumstances of the particular case, to act upon the supposition that it exists’. Further, S.114 of the Evidence Act allows the court to presume the existence of any fact which it thinks likely to have happened regard being had to the common course of natural events, human conduct, etc.
The Evidence Act itself lays down the objective methods, including adequate restrictions, to arrive at the subjective satisfaction to determine the truth. The definition of ‘proved’ itself provides for ‘consideration of the matters before it’. The provision in Sec. 27 which bars the use of statement, given to police while an accused is in custody, is an important restriction in that line.
In Karunakaran v. State, (1960) 2 Ker LR 247, it is observed as under:
“The practice of attestation of confessional statement by witnesses is an objectionable one. It prejudices the accused to safeguard whose interest the Legislature has enacted Ss. 24 fo 26 of the Evidence Act. It has no legal sanction behind it. There is no harm in recording the accused’s statement in the first person at any great length in the case diary when the accused is arrested and questioned and in the preamble to the recovery mahazar reference to the reasons leading to the recovery may be made.
The whole thing appears to be an “intentional whittling down” of the wholesome provisions of Ss. 25 and 26 of the Evidence Act. It is very easily said that the incriminating portion of a lengthy confessional “statement should be excluded. But it is a very difficult mental process to close your eyes to the details in the confessional statement and see only the bracketed portion and remain uninfluenced by the confession of the accused. This feat is possible of performance only by a few specially trained experts. There is no reason why the overburdened judicial officers should be saddled with an additional burden which has not the support of law or procedure.” (Quoted in: Mohammed v. State of Kerala, 1963 Cri LJ 175; Thadiyanevida Nazeer @ Ummer Haji v. State of Kerala (2022) and K Babu v. State of Kerala, 2023(6) KLT 96)
Courts are Created for the Very Object of Finding TRUTH
Following decisions of our Apex Court bespeak, as to the significance of TRUTH in judicial determinations, as under:
It is the function of the Court to save the truth from falsehood–
Bhagwan Tana Patil v. State of Maharashtra, AIR 1974 SC 1974
There is a legal duty for the courts to find the truth and administer justice–
Mohanlal Shamji Soni v. Union of India, 1991 Supp (1) SCC 271.
The Courts are created for the very object of finding the truth–
Mohan Singh v. State of MP, (1999) 2 SCC 428.
Right from the inception of the judicial system establishment of truth is the main purposes underlying existence of Courts of justice–
Zahira Habibullah Sheikh v. State of Gujarat, (2006) 3 SCC 374.
The trial should bea search for the truth–
Himanshu Singh Sabharwal v. State of Madhya Pradesh, (2008) 3 SCC 602,
The people would have faith in Courts when they would find that truthalone triumphs in Courts–
Chandra Shashi v. Anil Kumar Verma, (1995) 1 SCC 421.
The truth should be the guiding starin the entire legal process and it is the duty of the Judge to discover truth to do complete justice–
Maria Margarida Sequeria Fernandes v. Erasmo Jack de Sequeria, (2012) 5 SCC 370,.
It is the bounden duty of the Court to uphold the truth and do justice–
Shanmugam v. Ariya Kshatriya, (2012) 6 SCC 430.
Now a question comes – Which provision of the Indian Evidence Act deals with ‘deducing or deriving’ TRUTH ?
In such an inquisition, we legitimately arrive at in-
(i) the definition of “Proved” in Sec. 3, and
(ii) “Presumption” in Sec. 114, Evidence Act.
The definition of “Proved” in Sec. 3 gives vast discretion to the court. It reads as under:
” ‘Proved‘ — A fact is said to be proved when, after considering the matters before it, the Court; either BELIEVES it to exist, or CONSIDERS its existence so PROBABLE that a prudent man ought, under the circumstances of the particular case, to act upon the supposition that it exists.”
To fulfill the prime and onerous duty on the court, that is deducing or deriving TRUTH from the disputed matters, the Evidence Act further enables and authorises the court to invoke PRESUMPTION under Sec. 114 Evidence Act, wherever it is required.
Sec. 114 reads as under:
“114. Court may presume existence of certain facts —The Court may PRESUME the existence of any fact which it thinks likely to have happened, regard being had to the common course of natural events, human conduct and public and private business, in their relation to the facts of the particular case.”
Presumption of Truth is taken ‘on something Proved‘, or taken for granted
In Izhar Ahmad Khan v. Union of India, AIR 1962 SC 1052, the Supreme Court definitely observed that presumption of truth is taken ‘on something proved or taken for granted ‘. It reads as under:
“The term ‘presumption’ in its largest and most comprehensive signification, may be defined to mean inference, affirmative or dis-affirmative of the truth or falsehood of a doubtful fact or proposition drawn by a process of probable reasoning from something proved or taken for granted.”
The Apex Court further quoted James Bradley Tayer (American jurist and author of Treatise on Evidence) which reads as under:
“Presumptions are aids to reasoning argumentation, which assume the truth of certain matters for the purpose of some given inquiry. …”.
In State of West Bengal v. Mir Mohammad Omar, 2000-8 SCC 382, it is observed as under:
“33. Presumption of fact is an inference as to the existence of one fact from the existence of some other facts, unless the truth of such inference is disproved. Presumption of fact is a rule in law of evidence that a fact otherwise doubtful may be inferred from certain other proved facts. When inferring the existence of a fact from other set of proved facts, the court exercises a process of reasoning and reach a logical conclusion as the most probable position. The above principle has gained legislative recognition in India when Sec. 114 is incorporated in the Evidence Act. It empowers the court to presume the existence of any fact which it thinks likely to have happened. In that process court shall have regard to the common course of natural events, human conduct etc. in relation to the facts of the case.”
TRUTH is left to Discretion or Presumption of Court
Sec. 67, Evidence Act lays down the fundamental principles as to the proof of documents. Sec. 67 reads as under:
“67. Proof of signature and handwriting of person alleged to have signed or written document produced—If a document is alleged to be signed or to have been written wholly or in part by any person, the signature or the handwriting of so much of the document as is alleged to be in that person’s handwriting must be proved to be in his handwriting.”
Sec. 67 says as to ‘proof of signature and handwriting’ alone. Neither Sec. 67 nor any other section of the Ev
In this premise, it is legitimate to deduce the following inferences –
Evidence Act does not expressly proffer anything as to “TRUTH of contents” of documents.
It is left to the discretion (Sec. 3) of the court. In proper cases court can presume (Sec. 114) truth.
In most cases, ‘proof of execution’ may lead the court to presume ‘proof of truth’.
It is more so, when a document is admitted (by the other side) without objection.
But, when proof as to ‘truth’ is in issue, or in dispute, the party in whom the burden thereof rests has to discharge it.
Adjudication to Find Out Truth & Doctrines of Substantive Rights, Prejudice to Other Side, Procedure – a Handmaid Matter
In Jai Jai Ram Manohar Lal, (1969) 1 SCC 869 our Apex Court held, while dealing with amendment of pleadings, as under:
“5. …. Rules of procedure are intended to be a handmaid to the administration of justice. A party cannot be refused just relief merely because of some mistake, negligence, inadvertence or even infraction of the Rules of procedure. (Quoted in Varun Pahwa v. Renu Chaudhary, AIR 2019 SC 1186)
In Uday Shankar Triyar v. Ram Kalewar Prasad Singh, (2006) 1 SCC 75, our Apex Court held that procedural defects and irregularities which are curable should not be allowed to defeat substantive rights or to cause injustice. Procedure should never be made a tool to deny justice or perpetuate injustice by any oppressive or punitive use. The Court held as under:-
“17. Non-compliance with any procedural requirement relating to a pleading, memorandum of appeal or application or petition for relief should not entail automatic dismissal or rejection, unless the relevant statute or rule so mandates. Procedural defects and irregularities which are curable should not be allowed to defeat substantive rightsor to cause injustice.
Procedure, a handmaiden to justice, should never be made a tool to deny justice or perpetuate injustice, by any oppressive or punitive use. The well-recognised exceptions to this principle are:
.(i) where the statute prescribing the procedure, also prescribes specifically the consequence of non- compliance;
(ii) where the procedural defect is not rectified, even after it is pointed out and due opportunity is given for rectifying it;
(iii) where the non-compliance or violation is proved to be deliberate or mischievous;
(iv) where the rectification of defect would affect the case on merits or will affect the jurisdiction of the court;
(v) in case of memorandum of appeal, there is complete absence of authority and the appeal is presented without the knowledge, consent and authority of the appellant.” (Quoted in Varun Pahwa v. Renu Chaudhary, AIR 2019 SC 1186.)
Adjudication is to Render Justice; it is Unmindful of Consequences
It was held by the Kerala High Court in Gopalakrishnan v. Joint Registrar of Co operative Societies (General), 08 Dec 2015, (Dama Seshadri Naidu, J) as under:
“23. I am very conscious that this Court, as a constitutional adjudicatory machinery, is called upon to interpret the statute straight and simple and render justice. Justice is not an inventive judicial instrument; it is rather a necessary corollary to the judicious application of the law to the facts following certain accepted cannons of construction of the statutes and the Constitution, too. The whole process is compendiously called judicial adjudication. Trite is the truth that adjudication is unmindful of consequences; it is, on the other hand, in the legislative wisdom to consider all the eventualities and bring about legislation or legislative changes to see that the varied needs of the organisations and institutions, including the administrative agencies, are best served—adverse fallout on the application of law is avoided.
30 Years Old Documents- No ‘Absolute’ Presumption of Truth of Contents, under Sec. 90 Evidence Act
90. Presumption as to documents thirty years old –– Where any document, purporting or proved to be thirty years old, is produced from any custody which the Court in the particular case considers proper, the Court may presume that the signature and every other part of such document, which purports to be in the handwriting of any particular person, is in that person’s handwriting, and, in the case of a document executed or attested, that it was duly executed and attested by the persons by whom it purports to be executed and attested. Explanation.–– Documents are said to be in proper custody if they are in the place in which, and under the care of the person with whom, they would naturally be; but no custody is improper if it is proved to have had a legitimate origin, or if the circumstances of the particular case are such as to render such an origin probable. This explanation applies also to section 81.
Under Sec. 90, Not Truth of Contents, but, only presumption of Genuineness of a document (i.e., existence or handwriting), is drawn. Therefore, besides TRUTH, the contents of the documents also have to be proved by cogent evidence.
Indian Evidence Act and other procedural laws do not expressly say anything as to “TRUTH of contents” of documents. In proper cases court can presume truth.
No doubt, under Sec. 114, TRUTH can be presumed, directly, in proper cases, in their peculiar ensuring facts (regard being had to the common course of natural events, human conduct and public and private business, in their relation to the facts of the particular case).
That is, if the document is a public document an “added presumption” (as to correctness) under Section 114(e) is available -Iqbal Basith and others v. N Subbalakshmi, (2021) 2 SCC 718.
Sec. 90 CPC, basically, speaks about two things – as regards 30-year-documents:
1. A document purports to be in the handwriting of any particular person is presumed to be in his handwriting.
2. A document purports to be executed or attested is presumed to be duly executed and attested.
The presumption, under Section 90, Evidence Act, as to regularity for documents having more than 30 years of age does not apply to Wills (Unless Sec. 71 Evid. Act can be Invoked).
Sec. 90, Evid. Aact – Not Truth of Contents; But, Genuineness Drawn
Under Sec. 90, Not Truth of Contents, but, only presumption of Genuineness of a document (i.e., existence or handwriting), is drawn (Union of India v. Ibrahim Uddin: (2012) 8 SCC 148). Therefore, besides TRUTH, the contents of the documents also have to be proved by cogent evidence.
No doubt, under Sec. 114, TRUTH can be presumed, directly, in proper cases, in their peculiar ensuring facts (regard being had to the common course of natural events, human conduct and public and private business, in their relation to the facts of the particular case).
That is, if the document is a public document an “added presumption” (as to correctness) under Section 114(e) is available -KalitaIqbal Basith and others v. N Subbalakshmi, (2021) 2 SCC 718.
Our Courts Act Upon ‘LEGAL TRUTH’; and not ‘ULTIMATE TRUTH’
As shown above, the very duty of a court is to find TRUTH. Our courts are said to be functioning in ‘adversarial system’ where advocates present the case of their parties before an impartial judge for determining the truth and for getting a judgment accordingly. In such a system, the courts are concerned with ‘PROCEDURAL TRUTH’ or ‘LEGAL TRUTH’ as emerged from the pleadings and evidence; and not ULTIMATE TRUTH.
In State of Rajasthan v. Asharam @ Ashumal, AIR 2023 SC 2228, it is observed as under:
“In a well-designed system, judicial findings of formal legal truth should coincide with substantive truth.” (Also see: Kailash Vijayvargiya v. Rajlakshmi Chaudhuri, 2023-6 JT 138.)
Viscount Simon LC, explained it in Hickman v. Peacey, [1945] AC 304, as under:
“A court of law … is not engaged in ascertaining ultimate verities: it is engaged in determining what is the proper result to be arrived at, having regard to the evidence before it.”
Conjectures and Suspicion Should Not take the place ofLegal Truth.
In Ritesh Chakarvarti v. State of Madhya Pradesh, 2007-1 SCC(Cr) 744, our Apex Court warned as under:
“There is another aspect of the matter, which cannot be lost sight of. While dealing with a case of grave nature like the present one, there is always a danger that conjectures and suspicion may take the place oflegal truth.” (See also: Aloke Nath Dutta v. State of West Bengal, 2007-12 SCC 230.)
“Preponderance of Probabilities”
Difference in appreciation of evidence in Criminal and Civil matters.
Civil courts proceeds on the principle – “preponderance of probability”. Criminal courts proceeds on the principle – guilt of the accused must be ‘proved beyond all reasonable doubts’.
Preponderance of Probabilities
‘Preponderance’ is used for it carries or conveys the idea that the conscience of the judge is important in appreciation of evidence and law in civil matters. It is also used in contrast to ‘certainty beyond doubt’ (pertains to criminal law). In the process of appreciation of evidence, the ‘slight’ evidence may ‘tilt the balance’ in Civil cases on applying the principle of ‘preponderance’. Therefore, it is said that the evidence is to be weighed. That is, ‘count’ is not the material thing, for a ‘genuine’ judge. It is laid down in Section 134 of the Evidence Act which reads as under:
“No particular number of witnesses shall in any case be required for the proof of any fact.”
In Narayan Ganesh Dastane v. Sucheta Narayan Dastane, AIR 1975 SC 1534, our Apex Court observed as under:
“The normal rule which governs civil proceedings is that a fact can be said to be estabilshed if it is proved by a preponderance of probabilities. This is for the reason that under the Evidence Act, Sec. 3, a fact is said to be proved when the court either believes it to exist or considers its existence so probable that a prudent man ought, under the circumstances of the particular case, to act upon the supposition that it exists. The belief regarding the existence of a fact may thus be founded on a balance of probabilities. A prudent man faced with conflicting probabilities concerning a fact-situation will act on the supposition that the fact exists, if on weighing the various probabilities he finds that the preponderance is in favour of the existence of the particular fact. As a prudent man, so the court applies this test for finding whether a fact in issue can be said to be proved. The first step in this process is to fix the probabilities, the second to weigh them, though the two may often intermingle. The impossible is weeded out at the first stage, the improbable at the second. Within the wide range of probabilities the court has often a difficult choice to make but it is this choice which ultimately determines where the preponderance of probabilities lies.”
Our Apex Court referred the following two English decisions-
(1) Per Dixon,J.in Wright v.Wright (1948)77 C.L.R.191. It observed as under:
“The nature and gravity of an issue necessarily determines the manner of attaining reasonable satisfaction of the truth of the issue”;
(2) Blyth v. Blyth, [1966] 1 A.E.R. 524 (Lord Denning). It is observed as under:
“The degree of probability depends on the subject-matter. In proportion as the offence is grave, so ought the proof to be clear”
Standard of proof required under Sect. 139 NI Act is ‘preponderance of probabilities’
In Rangappa v. Sri Mohan, (2010) 11 SCC 441, our Apex Court held that Sec. 139, Negotiable Instruments Act, 1881 (“It shall be presumed, unless the contrary is proved”) contains ‘reverse onus clause‘; and that under Sect. 139, the standard of proof required for rebutting that presumption is ‘preponderance of probabilities’. (Followed in Anss Rajashekar v. Augustus Jeba Ananth, AIR 2019 SC 942).
In Basalingappa v. Mudibasappa, 2019-5 SCC 418, while considering the presumption in 138 NI Act, it is held that when financial capacity is questioned, it was incumbent on the complainant to have explained his financial capacity and that the Court cannot insist on a person to lead negative evidence.
In Basalingappa v. Mudibasappa, 2019-5 SCC 418, while considering the presumption in 138 NI Act, it is held that when financial capacity is questioned, it was incumbent on the complainant to have explained his financial capacity and that the Court cannot insist on a person to lead negative evidence.
In Oriental Bank of Commerce v. Prabodh Kumar Tewari (AS Bopanna, Dhananjaya Y Chandrachud), 2022-7 SCR 72, it is held as under:
“12. Section 139 of the Act mandates that it shall be presumed, unless the contrary is proved, that the holder of a cheque received it, in discharge, in whole or in part, of a debt, or liability.
The expression “unless the contrary is proved” indicates that the presumption under Section 139 of the Act is rebuttable. Terming this as an example of a “reverse onus clause” the three-Judge Bench of this Court in Rangappa held that in determining whether the presumption has been rebutted, the test of proportionality must guide the determination. The standard of proof for rebuttal of the presumption under Section 139 of the Act is guided by a preponderance of probabilities.”
Reasonable Possibility alone is needed to Rebut Presumption
In Kali Ram Vs. State of Himachal Pradesh, (1973) 2 SCC 808, it was laid down by our Apex Court as under:
“23. ……One of the cardinal principles which has always to be kept in view in our system of administration of justice for criminal cases is that a person arraigned as an accused is presumed to be innocent unless that presumption is rebutted by the prosecution by production of evidence as may show him to be guilty of the offence with which he is charged. The burden of proving the guilt of the accused is upon the prosecution and unless it relieves itself of that burden, the courts cannot record a finding of the guilt of the accused. There are certain cases in which statutory presumptions arise regarding the guilt of the accused, but the burden even in those cases is upon the prosecution to prove the existence of facts which have to be present before the presumption can be drawn. Once those facts are shown by the prosecution to exist, the Court can raise the statutory presumption and it would, in such an event, be for the accused to rebut the presumption. The onus even in such cases upon the accused is not as heavy as is normally upon the prosecution to prove the guilt of the accused. If some material is brought on the record consistent with the innocence of the accused which may reasonably be true, even though it is not positively proved to be true, the accused would be entitled to acquittal.” (Quoted in: Basalingappa v. Mudibasappa: 2019-5 SCC 418.)
In M.S. Narayana Menon v. State of Kerala, (2006) 6 SCC 39 (SB Sinha), it was held that a probable defence or reasonable possibility alone is needed to rebut the presumption, which must meet the standard of “preponderance of probability”. In M.S. Narayana Menon v. State of Kerala, (2006) 6 SCC 39 (SB Sinha) observed as under:
“In Hiten P. Dalal v. Bratindranath Banerjee [(2001) 6 SCC 16], a 3- Judge Bench of this Court held that although by reason of Sections 138 and 139 of the Act (NI Act), the presumption of law as distinguished from presumption of fact is drawn, the court has no other option but to draw the same in every case where the factual basis of raising the presumption is established. Pal, J. speaking for a 3-Judge Bench, however, opined:
“Presumptions are rules of evidence and do not conflict with the presumption of innocence, because by the latter, all that is meant is that the prosecution is obliged to prove the case against the accused beyond reasonable doubt. The obligation on the prosecution may be discharged with the help of presumptions of law or fact unless the accused adduces evidence showing the reasonable possibility of the non-existence of the presumed fact.
In other words, provided the facts required to form the basis of a presumption of law exist, no discretion is left with the court but to draw the statutory conclusion, but this does not preclude the person against whom the presumption is drawn from rebutting it and proving the contrary. A fact is said to be proved when, ‘after considering the matters before it, the court either believes it to exist, or considers its existence so probable that a prudent man ought, under the circumstances of the particular case, to act upon the supposition that it exists’. Therefore, the rebuttal does not have to be conclusively established but such evidence must be adduced before the court in support of the defence that the court must either believe the defence to exist or consider its existence to be reasonably probable, the standard of reasonability being that of the ‘prudent man’.”
Standard of Proof in Civil and Criminal Cases
Our Apex Court continued in Narayan Ganesh Dastane v. Sucheta Narayan Dastane, AIR 1975 SC 1534, as under:
“In civil cases this, normally, is the standard of proof to apply for finding whether the burden of proof is discharged. Proof beyond reasonable doubt is proof by a higher standard which generally governs criminal trials or trials involving inquiry into issues of a quasi-criminal nature. A criminal trial involves the liberty of the subject which may not be taken away on a mere preponderance of probabilities. If the probabilities are so’ nicely balanced that a reasonable, not a vascillating, mind cannot find where the preponderance lies, a doubt arises regarding the existence of the fact to be proved and the benefit of such reasonable doubt goes to the accused. It is wrong to import such considerations in trials of a purely civil nature.”
In State of Haryana v. Amin Lal(Vikram Nath, Prasanna B. VaraleJJ),November 19, 2024, it is held by the Supreme Court of India as under:
“By asserting adverse possession, the appellants have impliedly admitted the plaintiffs’ title.”
Facts & Findings – in a Nutshell
In the suit for recovery of possession, plaintiffs relied on jamabandi (revenue) entries, and sale deeds – a chain of title, to establish their ownership.
Revenue records are maintained by officials in regular course of duties. It carries a presumption of correctness under Sec. 35, Evid. Act.
While it is true that revenue entries do not by themselves confer title, they are admissible as evidence of possession.
And can support a claim of ownership when corroborated by other evidence.
HC decreed the suit holding –
By taking the plea of adverse possession, the defendants impliedly admitted the title of the plaintiffs.
Dismissing the appeal filed by the defendant, SC held:
In a suit for possession plaintiffs must establish their ownership.
Here, defendants did not specifically deny plaintiffs’ ownership.
Instead, they primarily relied on plea of adverse possession.
Under O. VIII r. 5 CPC, facts not denied are deemed to be admitted.
By asserting Adv. Possn., the appellants impliedly admitted the plaintiffs’ title.
Defendants claim – long possessionperfected title – Notsustainable. Instead, claim of hostile title in denial of the title of true owner needed for supporting plea of adverse possession.
Key Takeaways
(i) “By asserting adverse possession, the appellants have impliedly admitted the plaintiffs’ title.”
(ii) “The appellants claim that due to their long and continuous possession of the suit property since 1879-80, they have perfected their title, is also not sustainable in law.”
(iii) “However, it is a fundamental principle that the State cannot claim adverse possession over the property of its own citizens.”
Important Findings
“8. The appellants (defendants) contention that plaintiff failed to prove their title and ownership is completely misplaced for the reasons and analysis made hereunder:
8.1 We find this argument unconvincing for several reasons: In their written statement before the Trial Court, the appellants did not specifically deny the plaintiffs’ ownership of the suit property. Instead, they primarily relied on the plea of adverse possession. Under Order VIII Rule 5 of the Code of Civil Procedure, 1908, allegations of fact not denied specifically are deemed to be admitted. By asserting adverse possession, the appellants have impliedly admitted the plaintiffs’ title.
8.2 The plaintiffs relied on jamabandi entries to establish their ownership. The jamabandi for the year 1969-70 (Exhibit P1) records the name of Shri Amin Lal as owner to the extent of half share. Revenue records are public documents maintained by government officials in the regular course of duties and carry a presumption of correctness under Section 35 of the Indian Evidence Act, 1872. While it is true that revenue entries do not by themselves confer title, they are admissible as evidence of possession and can support a claim of ownership when corroborated by other evidence.
8.3 The respondents(plaintiffs) have produced copies of registered sale deeds and mutation records before this Court, which were part of the additional documents filed with the counteraffidavit. Plaintiff No. 1, Shri Amin Lal, derived title through a registered sale deed dated 5th July 1960, and mutation No. 8329 was sanctioned on 20th April 1982. Plaintiff No. 2, Shri Ashok Kumar, derived his title through a registered sale deed dated 12th March 1973, and mutation No. 8330 was sanctioned on 20th April 1982. These documents establish a chain of title and cannot be ignored.
8.4 The appellants(defendants) did not dispute the plaintiffs’ title in their pleadings or during the trial. The First Appellate Court’s finding that the plaintiffs are not the true owners is based on conjecture and lacks evidentiary support. The appellants(defendants) cannot now, at this appellate stage, challenge the plaintiffs’ ownership without having raised a specific denial earlier.
9. The appellants’(defendants) next submission that the burden of proof lay on the plaintiffs to establish their title is equally not borne out from the records. It is a well-settled principle that in a suit for possession based on title, the plaintiffs must establish their ownership. In the present case, the plaintiffs have done so by producing revenue records and, subsequently, the registered sale deeds and mutation entries. Furthermore, as the appellants(defendants) failed to deny the plaintiffs’ title specifically and instead relied on adverse possession, the burden has shifted to the appellants to prove their adverse possession. In the present case, the plaintiffs have sought possession based on their title, which they have established through documentary evidence.
10. The appellants(defendants) claim that due to their long and continuous possession of the suit property since 1879-80, they have perfected their title, is also not sustainable in law. However, it is a fundamental principle that the State cannot claim adverse possession over the property of its own citizens.”
Claimant must have accepted title of the true owner
It is a basic factor in adverse possession- the claimant thereof must have accepted the title of the true owner.
In In Kurella Naga Druva Vudaya Bhaskara Rao v. Galla Jani Kamma Alias Nacharamma, (2008) 15 SCC 150, it was pointed out – if according to the defendant, theplaintiff was not the true owner, his possession would not have been sufficient to term it ‘hostile’ to the plaintiff’s title; and that the defendant had to show, to attract adverse possession, that his possession was also hostile to the title and possession of the true owner.
In Nand Ram v. Jagdish Prasad, (2020) 9 SCC 393, it was pointed out by the Apex Court :
The question of adverse possession without admitting the title of the real owner is not tenable.
In Uttam Chand v. Nathu Ram, 2020-11 SCC 263, AIR 2020 SC 461, our Apex Court allowed the appeal, negating the claim of adverse possession raised by the defendant, inter alia, for not accepting the title of the plaintiff (true owner), by the defendant. It was observed as under:
“16. In the present case, the defendants have not admittedthe vestingof the suit property with the Managing Officer and the factum of its transfer in favour of the plaintiff. The defendants have denied the title not only of the Managing Officer but also of the plaintiff.”
KNOWLEDGE of True Owner sine qua non of ADVERSE POSSESSION
1. For a possession to be “ADVERSE”, it must be one obviously arose byDispossessingtrue owner,admitting his Title (Knowing him).
It is trite law – after 1963 Limitation Act, under Article 65 – the defendants should have founded its case on “adverse” possession with the pleading –
Started withwrongful dispossession,
– obviously – knowing True Owner.
hostile or notoriousenough
with a view to make True Owner aware
specifying date of starting
– obviously – knowing True Owner
admitting ‘real/true’ owner as ‘rightful’ owner,
– obviously – knowing True Owner
with some overt act (Gaya Prasad Dikshit v. Dr. Nirmal Chandar, 1984(2) SCC 286; Government of Kerala v. Joseph –AIR 2023 SC 3988).
– obviously – knowing True Owner”
See:
RadhesiamLal v. Sandhya – AIR 2024 SC 1595
Government of Kerala v. Joseph – AIR 2023 SC 3988
Ram NaginaRai v. DeoKumarRai – 2019-13 SCC 324.
Karnataka Board of Wakaf v. Govt of India – AIR 2004 SC 2096;
T. Anjanappa v. Somalingappa – [(2006) 7 SCC 570]; and
PT Munichikkanna Reddy v. Revamma – AIR 2007 SC 1753;
Nand Ram v. Jagdish Prasad, (2020) 9 SCC 393
Gaya Prasad Dikshit v. Dr. NirmalChandar 1984(2) SCC 286, P.N. Bhagwati, D.P. Madon
T. Lakshmi Reddi v. L. Lakshmi Reddi 1957 SCR 195).
2. If permissive holder, no adverse possession. See:
State of Haryana v. AminLal – 19 Nov. 2024 SC
NeelamGupta v. Rajendrakumar – 2024 INSC 769
Ram Nagina Rai v. Deo Kumar Rai – 2019-13 SCC 324
Thakur Kishan Singh v. Arvind Kumar, 1994-6 SCC 591
L.N. Aswathama v. P. Prakash (2009) 13 SCC 229
R. Hanumaiah v. Secretary to Government of Karnataka, (2010) 5 SCC 203.
3. Permissive holder is Estoppedfrom raising claim of Adverse Possession
Nand Ram v.Jagdish Prasad, (2020) 9 SCC 393.
4. Mere possession, however long, insufficient. It must be adverse. There is drastic change after 1963 Limitation Act.
Govt. of Kerala v. Joseph – AIR 2023 SC 3988
T. Anjanappa v. Somalingappa – 2006(7) SCC 570.
Gaya Prasad Dikshit v. Dr. Nirmal Chandar 1984(2) SCC 286.
Karnataka Board of Wakf v. Govt. of India – (2004) 10 SCC 779.
It not sure who the true owner is, there will be no Adverse Possession
Adverse possession is hostile possession which is expressly or impliedly in denial of title of the true owner. To attract adverse possession there must be animus possidendi to hold the land adverse to the title of the true owner (Chatti Konati Rao v. Palle Venkata Subba Rao, 2010-14 SCC 316; M. Venkatesh v. BDA, 2015-17 SCC 1; Brijesh Kumar v. Shardabai, 2019-9 SCC 369) with the knowledge of the true owner. If the defendants are not sure who the true owner is, there will be no question of possessing the property hostile to the true owner.
In T. Anjanappa v. Somalingappa, 2006-7 SCC 570, it is held as under:.
…The High Court has erred in holding that even if the defendants claim adverse possession, they do not have to prove who is the true owner and even if they had believed that the Government was the true owner and not the plaintiffs, the same was inconsequential. Obviously, the requirements of proving adverse possession have not been established. If the defendants are not sure who is the true owner the question of their being in hostile possession and the question of denying title of the true owner do not raise…… Therefore, the defendants are in possession and enjoyment of the property knowing fully well that the property belonged to the plaintiff’s father and the plaintiff’s vendor also did not take any action to evict them and the plaintiff and his vendor were aware that the properties belonged to them and despite the same, the plaintiff’s vendor did not take any action to evict them. Hence, the appellants/defendants have also perfected title by adverse possession. Therefore, the 2nd substantial question of law of is answered in favour of the appellants/defendants.” (Followed in: Uttam Chand v. Nathu Ram, 2020-11 SCC 263, AIR 2020 SC 46.)
No Adverse Possession Without Admitting Title of Real Owner
In Nand Ram v. Jagdish Prasad, AIR 2020 SC 1884; (2020) 9 SCC 393, it was pointed out by the Apex Court :
“The question of adverse possession without admitting the title of the real owner is not tenable.”
Our Apex Court, in Ayodhya case Judgment, M Siddiq v. Mahant Suresh Das, 2020-1 SCC 1, it is held as under:
“747. A plea of adverse possession is founded on the acceptance that ownership of the property vests in another against whom the claimant asserts a possession adverse to the title of the other.”
This principle is laid down in the following decisions also:
The State of Haryana v. Amin Lal, 2024-4 CurCC(SC) 222,
Kurella Naga Druva Vudaya Bhaskara Rao v. Galla Jani Kamma, (2008) 15 SCC 150,
Uttam Chand v. Nathu Ram, 2020-11 SCC 263, AIR 2020 SC 461.
Claim of Adverse Possession by Tenant
In Nand Ram v. Jagdish Prasad, (2020) 9 SCC 393, the claim of adverse possession by the tenant was negatived by the Apex Court on the following grounds:
The respondent-tenant had admitted the ownership of the landlord in earlier proceedings.
Such plea operates as estoppel. The subsequent claim of adverse possession of the tenant as owner is not sustainable.
The respondent was to prove his continuous, open and hostile possession to the knowledge of true owner for a continuous period of 12 years. The respondent has not led any evidence of hostile possession to the knowledge of true owner.
He has also not surrendered possession before asserting hostile, continuous and open title to the knowledge of the true owner. (In terms of Sec. 108(q) of the TP Act possession of tenant remains permissive till it has been actually restored to the landlord.)
In Bishwanath Agarwala v. Sabitri Bera -2009(15) SCC 693 (Deepak Varma & SB Sinha, JJ) it is held as under:
“The landlord in a given case though may not be able to prove the relationship of landlord and tenant, but in the event, he proves his general title, may obtain a decree on the basis thereof.”
The Apex Court referred to Champalal Sharma v. Smt. Sunita Maitra, 1990 (1) DJLR 298, where SB Sihna, J. himself held:
“It is also well settled that one such relationship is admitted or established tenant would be estopped and precluded from challenging the title of the landlord; and if he does so, under the general rule, make himself liable for eviction on that ground”.
Plea of Title or permissive Possession And Adverse Possession Are Mutually Contradictory.
Adverse possession can be raised only against the property owned by another person. In Abdul Hameed Rawther v. Basheer, ILR 2024-2 Ker 527; 2024-3 KLT 812, it is held as under:
“25. The law is well settled that the plea of adverse possession can be raised only against the property owned by another person against whom he asserts possession adverse to the title of the other (Raghavan v. Devayani [2024 (2) KHC 417] and Shri Uttam Chand (D) through LRs. v. Nathu Ram (D) through LRs. and Others [2020 KHC 6034]).”
In Government of Kerala v. Joseph, AIR 2023 SC 3988, it is held as under:
“21.9 Claim of independent title and adverse possession at the same time amount to contradictory pleas. The case of Annasaheb Bapusaheb Patil v. Balwant, (1995) 2 SCC 543 elaborated this principle as:
“15. Where possession can be referred to a lawful title, it will not be considered to be adverse. The reason being that a person whose possession can be referred to a lawful title will not be permitted to show that his possession was hostile to another’s title. One who holds possession on behalf of another, does not by mere denial of that other’s title make his possession adverse so as to give himself the benefit of the statute of limitation. Therefore, a person who enters into possession having a lawful title, cannot divest another of that title by pretending that he had no title at all.”
This principle was upheld in the case of Mohan Lal v. Mirza Abdul Gaffar (AIR 1996 SC 910, 1996 1 SCC 639 –two Judge Bench) –
“4. As regards the first plea, it is inconsistent with the second plea. Having come into possession under the agreement, he must disclaim his right thereunder and plead and prove assertion of his independent hostile adverse possession to the knowledge of the transferor or his successor in title or interest and that the latter had acquiesced to his illegal possession during the entire period of 12 years, i.e., up to completing the period of his title by prescription nec vi, nec clam, necprecario. Since the appellant’s claim is founded on Section 53-A, it goes without saying that he admits by implication that he came into possession of the land lawfully under the agreement and continued to remain in possession till date of the suit. Thereby the plea of adverse possession is not available to the appellant.”
The Court in Uttam Chand (Sri Uttam Chand v. Nathu Ram AIR 2020 SC 461) has reiterated this principle of adverse possession.”
(Note: Mutually destructive plea is impermissible: (2006) 12 SCC 233, AIR 2009 SC 2355).
End Notes – 1
The same matter (adv. possn. is founded on acceptance of ownership of opposite side) has been examined in M Siddiq (D) through LRs v. Mahant Suresh Das (2020) 1 SCC 1 (Constitution Bench – Ayodhya Case).
It has been held – a plea of adverse possession is founded on the acceptance of ownership of the property with the other side.
The Court held as under:
“747. A plea of adverse possession is founded on the acceptance that ownership of the property vests in anotheragainst whom the claimant asserts a possession adverse to the title of the other. Possession is adverse in the sense that it is contrary to the acknowledged title in the other person against whom it is claimed.
Evidently, therefore, the plaintiffs in Suit 4 ought to be cognisant of the fact that any claim of adverse possession against the Hindus or the temple would amount to an acceptance of a title in the latter.
Dr Dhavan has submitted that this plea is a subsidiary or alternate plea upon which it is not necessary for the plaintiffs to stand in the event that theirmain plea on title is held to be established on evidence. It becomes then necessary to assess as to whether the claim of adverse possession has been established.
748. A person who sets up a plea of adverse possession must establish both possession which is peaceful, open and continuous – possession which meets the requirement of being ‘nec vi nec claim and nec precario’. To substantiate a plea of adverse possession, the character of the possession must be adequate in continuity and in the public because the possession has to be to the knowledge of the true owner in order for it to be adverse. These requirements have to be duly established first by adequate pleadings and second by leading sufficient evidence. Evidence, it is well settled, can only be adduced with reference to matters which are pleaded in a civil suit and in the absence of an adequate pleading, evidence by itself cannot supply the deficiency of a pleaded case. Reading paragraph 11(a), it becomes evident that beyond stating that the Muslims have been in long exclusive and continuous possession beginning from the time when the Mosque was built and until it was desecrated, no factual basis has been furnished. This is not merely a matter of details or evidence. A plea of adverse possession seeks to defeat the rights of the true owner and the law is not readily accepting of such a case unless a clear and cogent basis has been made out in the pleadings and established in the evidence.”
It is Quoted in:
Neelam Gupta v Rajendra Kumar Gupta, AIR 2024 SC 5374
M. Radheshyamlal v. V Sandhya, 2024 AIR SC 1595
Sri Uttam Chand v. Nathu Ram, 2020-11 SCC 263, AIR 2020 SC 461.
End Notes – 2
Easement: Dominant Owner Cannot Dispute The Title Of The Servient Owner
Note: Prescriptive easement is also created by adverse user, by the hostile use (Kantaben Parsottamdas v. Ganshyambhai Ramkrishan Purohit, AIR 2022 Guj 146).
It is trite law that the dominant owner cannot dispute the title of the servient owner (Reghuprasad v. M. Raghunathan, AIR 2020 Ker 16).
In Omana v. Reji Kurian, AIR 2022 Ker 91, it is held (K. Babu, J.) as under:
“19. Yet another aspect that requires consideration is that the pleadings of the defendants in the written statement go in the line, denying the title of the plaintiff over the ‘B’ schedule way. One of the fundamental ingredients in a claim of easement is the admission of the title of the servient owner by the dominant owner. On this ground alone, the claim of the defendants over plaint ‘B’ schedule property by way of easement by prescription must fail.”