Judgment Or Decree Obtained By Fraud Is To Be Treated As A Nullity : Supreme Court

The Supreme Court observed that a judgment or decree obtained by fraud is to be treated as a nullity.

Non-disclosure of the relevant and material documents with a view to obtain an undue advantage would amount to fraud, the bench of Justices BR Gavai and CT Ravikumar observed.

In this case, the Allahabad High Court had set aside the order passed by the Deputy Collector, Rasoolabad cancelling the fair price shop licence of the writ petitioner. It was found that the cancellation was done without following the full-fledged inquiry process.

Advocate Udayaditya Banerjee, who appeared for the appellant, contended before the Apex Court bench that, the writ petitioner was very well aware that during the pendency of the appeal before the Appellate Authority, the licence to run the fair price shop was allotted to the appellant. She has not only suppressed the said fact in the writ petition but has also made a statement which is totally false to her knowledge, it was contended. Advocate Irshad Ahmad, who appeared for the respondent, contended that an allottee during the pendency of the legal proceedings at the instance of the earlier allottee is not a necessary party and as such, the impugned judgment and order, which is passed without impleading the appellant cannot be assailed on that ground.

Referring to earlier judgments, the court observed that even if a subsequent allottee does not have an independent right, he/she still has a right to be heard and to make submissions defending the order of cancellation. The court further noted that the writ petitioner had suppressed the fact about the subsequent allotment of the fair price shop to the appellant herein but has also tried to mislead the High Court. While allowing the appeal, the court said:

"This Court, in the case of S.P. Chengalvaraya Naidu (Dead) By LRs. Vs. Jagannath (Dead) by LRs and others has held that non-disclosure of the relevant and material documents with a view to obtain an undue advantage would amount to fraud. It has been held that the judgment or decree btained by fraud is to be treated as a nullity. We find that respondent No.9 has not only suppressed a material fact but has also tried to mislead the High Court. On this ground also, the present appeal deserves to be allowed."

Case details

Ram Kumar vs State of Uttar Pradesh | 2022 LiveLaw (SC) 806 | CA 4258 OF 2022 | 28 September 2022 | Justices BR Gavai and CT Ravikumar

Headnotes

Judgment and Order - Judgment or decree btained by fraud is to be treated as a nullity - Non-disclosure of the relevant and material documents with a view to obtain an undue advantage would amount to fraud.  (Para 21)

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