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  • provisions of Order 1, Rule 1 and Order 2, Rule 3 of the CPC.18. O. 1, R. 1 of the CPC
  • SECTION 44 EVIDENCE ACT
  • 44, Evidence Act,
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Citation Codes
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  • provisions of Order 1, Rule 1 and Order 2, Rule 3 of the CPC.18. O. 1, R. 1 of the CPC
  • SECTION 44 EVIDENCE ACT
  • 44, Evidence Act,
Smart Summary

Concise Analytical Summary of the Opinion

Factual and Procedural Background

The appeal is by Defendant No. 1 in Title Suit No. 264/14 of 1967/72 against the decision of the court below (Title Appeal No. 36/73) which confirmed the trial court. The plaintiffs' case was that, following a family partition, the lands in schedules A and B fell to the share of Gouranga. Gouranga died on 25-9-66 leaving a widow, Dalimba (defendant No. 2). Gouranga executed registered sale deeds in favour of various plaintiffs and defendants: 29 decimals of schedule A in favour of plaintiffs 1 and 2 by registered sale deeds dated 11-8-62 and 22-7-68; approximately Ac.4.11 decimals by registered sale deed dated 31-7-63 in favour of Latika (defendant No. 3); and defendant No. 3 later sold parts of schedule B (Ac.8.50 decimals 6 Biswas) to plaintiffs 3–10 by separate registered sale deeds. The plaintiffs alleged defendant No. 1 was not adopted by Gouranga and had no right, title or interest in the suit properties.

Defendant No. 1 had earlier instituted T.S. No. 52/64 alleging he was the adopted son of Gouranga and claiming he was not bound by Gouranga's sales; that suit resulted in an ex parte decree in favour of defendant No. 1. The plaintiffs challenged the validity and effect of that decree in the present suit, alleging it was obtained by fraud and collusion and therefore did not operate as res judicata. The courts below decreed the present suit on concurrent findings that (1) the ex parte decree in T.S. No. 52/64 was collusive, (2) it did not operate as res judicata, and (3) defendant No. 1 was not the adopted son of Gouranga. Defendant No. 1 appealed against those findings.

Legal Issues Presented

  1. Whether the ex parte decree in T.S. No. 52/64 was obtained by collusion (fraud) and therefore can be disregarded in the present suit.
  2. If the decree in T.S. No. 52/64 was obtained by collusion, whether that decree nevertheless operates as res judicata in the present suit.
  3. Whether Defendant No. 1 was lawfully adopted by Gouranga (i.e., whether Defendant No. 1 is an adopted son entitled to rights in the suit properties).
  4. Whether the present suit, joined by multiple plaintiffs who purchased different portions of the property, was maintainable as a single suit (i.e., joinder of plaintiffs and causes of action).

Arguments of the Parties

Plaintiffs' Position (as reflected in the opinion)

  • The suit lands fell to Gouranga in a family partition; Gouranga sold portions to various plaintiffs by registered deeds, and those plaintiffs acquired valid title.
  • The ex parte decree obtained by Defendant No. 1 in T.S. No. 52/64 was obtained by fraud and collusion and therefore is not binding on the plaintiffs and does not operate as res judicata.
  • Defendant No. 1 was not the adopted son of Gouranga and thus had no right, title or interest in the suit properties.
  • The plaintiffs who bought different portions nevertheless have a common interest in setting aside the ex parte decree and therefore could join in the same suit under Order 1, Rule 1 and Order 2, Rule 3 CPC.

Appellant (Defendant No. 1) — Mr. Mohanty

  • Asserted that he was adopted by Gouranga on 5-6-60 and therefore was not bound by the sale deeds executed by Gouranga.
  • Maintained that the decree in T.S. No. 52/64 was not obtained by fraud or collusion and is binding (res judicata) on the plaintiffs, including the lis pendens transferees.
  • Challenged the finding that he was not adopted and sought to negate the concurrent findings of the courts below.
  • Contended that the suit was not maintainable because plaintiffs who purchased different portions had separate interests and causes of action, and therefore could not be joined.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Baboo v. Mt. Kirpa Dei, AIR 1950 All 488 Whether a decision in which one defendant colluded with the plaintiff can bind other defendants on the principle of res judicata. The court distinguished this authority: it concerned collusion by one defendant only and held the decision might bind other defendants. The court held it was not applicable because in the present case the ex parte decree was found to be obtained by collusion with all defendants.
Manchharam v. Kalidas ((1895) ILR 19 Bom. 821) Under Section 44 of the Evidence Act, a party can show that a judgment or order was obtained by fraud. Accepted as authority that S.44 permits a party to prove a judgment was obtained by fraud; supports treating a fraudulently obtained decree as non-binding.
Nistarini Dassi v. Nundo Lall Bose ((1899) ILR 26 Cal 891) An innocent party may prove in a court that a decree obtained against him elsewhere was obtained by fraud and the court may treat that decree as a nullity. Relied upon to show that a decree obtained by fraud can be declared nugatory by another court applying Section 44.
Bishunath Tewari v. Mst. Mirchi, AIR 1955 Pat 66 A judgment, decree or order of a court of competent jurisdiction can be treated as a nullity under Section 44 of the Evidence Act if obtained by fraud or collusion. Cited for the proposition that survey of authorities supports treating fraudulently or collusively obtained decrees as nullities; used to reject the res judicata contention.

Court's Reasoning and Analysis

The court proceeded by examining evidence and the inferences to be drawn from it rather than by introducing new legal propositions. The essential strands of reasoning were:

  1. Assessment of evidence regarding collusion in T.S. No. 52/64:
    • Gouranga, who was a defendant in T.S. No. 52/64, in his written statement asserted that Defendant No. 1 was not his adopted son — an admission inconsistent with a valid adoption claim favouring Defendant No. 1.
    • Defendant No. 1 admitted that after institution of T.S. No. 52/64 he lived with Gouranga and provided money to him when needed.
    • P.Ws. 9 and 10 deposed that Defendant No. 1 persuaded Gouranga's nearer relatives (Dalimba, Latika and Jagabandhu) not to contest the suit by promising properties in return; that testimony was corroborated by the admission of payments to Gouranga.
    • The fact that Gouranga and other defendants did not take steps to set aside the ex parte decree, despite Gouranga having contested the claim in his written statement, supported an inference of collusion.
    • On these facts the courts below made concurrent findings that the ex parte decree was obtained by collusion; the appellate court found no satisfactory ground to upset these concurrent findings in the second appeal.
  2. Legal effect of a decree obtained by fraud or collusion:
    • The court relied on Section 44 of the Evidence Act to state that any party may show that a judgment, order or decree (relevant under Sections 40–42) was obtained by fraud or collusion; such a showing affects the judgment's force, effect and executability.
    • The court distinguished Baboo v. Mt. Kirpa Dei as factually different (dealing with a case where only one defendant colluded), and held that where a decree is shown to have been obtained by collusion involving the plaintiff and all defendants before that court, it could not be treated as res judicata in a subsequent suit.
    • Authorities (Manchharam, Nistarini Dassi, Bishunath Tewari) were cited to support the proposition that a decree obtained by fraud or collusion may be treated as a nullity under Section 44 and its effect rendered nugatory.
  3. Assessment of the adoption claim:
    • Documentary evidence (Ext. 15(a), the service book entry) recorded Defendant No. 1 as the son of Bhikari Charan Das (his natural father) and showed appointment on 24-8-60, about 2½ months after the alleged adoption date of 5-6-60. The court treated this entry as a declaration made by Defendant No. 1 at appointment and a strong piece of evidence against the adoption claim.
    • Defendant No. 1 failed to produce the documentary proofs he referred to (voters' list entries, sale deeds, applications before the Sarpanch), and the oral testimony of D.Ws. 1, 2 and 4 regarding adoption was disbelieved (for example, D.W.1 admitted she did not attend the alleged temple adoption ceremony; neighbouring witnesses were not produced).
    • On these grounds the concurrent finding that Defendant No. 1 was not adopted was upheld as a finding of fact based on consideration of the relevant evidence and not amenable to being set aside in the second appeal.
  4. Maintainability and joinder of plaintiffs:
    • The court analysed the plaintiffs' common interest: although plaintiffs 1–2 and plaintiffs 3–10 had purchased different portions by different deeds, they had a common and similar cause of action in seeking a declaration that the ex parte decree was collusive, that Defendant No. 1 was not adopted, and that he had no right, title or interest.
    • Applying Order 1, Rule 1 and Order 2, Rule 3 of the CPC, the court held that the plaintiffs legitimately joined their causes of action in the same suit because common questions of law and fact arose and they were jointly interested in obtaining a single decree.

Holding and Implications

APPEAL DISMISSED WITH COSTS.

Direct legal consequences for the parties (as stated in the opinion):

  • The concurrent findings of the courts below are affirmed: the ex parte decree in T.S. No. 52/64 was obtained by collusion and does not operate as res judicata in the present suit.
  • Defendant No. 1 is held not to be the adopted son of Gouranga and therefore has no right, title or interest in Gouranga's properties (as claimed in this litigation).
  • The sales executed by Gouranga (and subsequent transfers to the plaintiffs) that were not challenged at hearing (notably the registered sale deeds dated 11-8-62 and 22-7-63 in favour of plaintiffs 1 and 2) remain final and unchallenged in this appeal.
  • The suit as instituted by multiple plaintiffs who purchased different portions was held maintainable under Order 1, Rule 1 and Order 2, Rule 3 CPC.

The opinion applies established authorities on Section 44 of the Evidence Act to treat fraudulently or collusively obtained decrees as susceptible to being declared nullities. The decision resolves the dispute between the parties on the facts and law presented; the court did not indicate the creation of any novel legal precedent beyond its application of existing authorities and statutory provision.

    Khirod Chandra Mohanty v. Banshidhar Khatua And Others

    1. Defendant No. 1 in Title Suit No. 264/14 of 1967/72 has preferred this appeal against the decision of the Court below in title Appeal No. 36/73 confirming that of the trial court.

    2. The plaintiffs' case, in short, is that in the family partition between Gouranga and his two brothers, the suit lands described in schedules A and B of the plaint fell to the share of Gouranga. Gouranga died on 25-9-66 leaving behind him his widow Dalimba, who was defendant No. 2 in the suit. Gouranga had alienated 29 decimal of land, described in schedule A of the plaint, in favour of plaintiffs 1 and 2 by two registered sale deeds dated 11-8-62 and 22-7-68. He also had sold the rest Ac. 4.11 decimals of land as per the registered sale deed dated 31-7-63 in favour of Latika, defendant No. 3, the wife of defendant No. 4. Defendant No. 3 thereafter alienated Ac. 8.50 decimals 6 Biswas of land, described in shedule B of the plaint, in favour of plaintiffs 3 to 10 by different registered sale deeds and these plaintiffs accordingly acquired valid title to the said properties. Defendant No. 1 (appellant herein) was not the adopted son of Gouranga and he had absolutely no right, title or interest in the suit properties. Defendant No. 1 instituted Title Suit No. 52-64 on the false averments that he was the adopted son of Gouranga and that he was not bound by the aforesaid sales. In that suit an ex parte decree was obtained by defendant No. 1 by fraud and collusion, and so the same is not binding on the plaintiffs in this suit and the decision in the said suit does not operate as res judicata for the present suit and also does not affect the right, title and interest of the plaintiffs in the suit properties in any manner. Defendant No. 1, the only contesting defendant, asserts that he was adopted as the son of Gouranga on 5-6-60, the sale of 29 decimals of the A schedule land in favour of plaintiffs 1 and 2 was challenged in the written statement, but he expressly relinquished his claim to that effect by his petition dated 7-8-72. The aforesaid sales in favour of defendant No. 3 by Gouranga and by defendant No. 8 in favour of plaintiffs 3 to 10 are challenged as invalid and inoperative. After Gouranga's death this defendant instituted T.S No. 52/64 which was decreed ex parte against the defendants and Gouranga and some others. In that suit it was declared that defendant No. 1 was the adopted son of Gouranga; he ((defendant No. 1) was not bound by the sale deeds executed by Gouranga; and the plaintiffs and defendant No. 3 being lis pendens transferees of the suit property they had not acquired any title over the same. It is stated that the decree in T.S No. 52/64 was not obtained by fraud and collusion between the parties in the said suit and that decree is binding against the plaintiffs, the lis pendens transferees of defendant No. 3 and the same operates as res judicata against this present suit.

    3. The other defendants did not contest the suit.

    4. As stated earlier, the sales effected by Gouranga by registered sale deeds dated 11-8-62 and 22-7-63 in favour of plaintiffs 1 and 2 were not challenged at the hearing of the suit, and accordingly the decision of the courts below on this aspect of the matter has become final and is not challenged in this appeal.

    5. The suit has been decreed by both the courts below on the findings that the decree passed in T.S No. 52/64 is collusive; (2) it does not operate as res judicata for this case; and (3) that defendant No. 1 is not the adopted son of Gouranga. Hence this second appeal by defendant No. 1.

    6. Mr. Mohanty, the learned counsel for the appelllant, made a vain effort to challenge the above-mentioned concurrent findings of fact numbered (1) and (3) in the preceding paragraph.

    7. In T.S No. 52/64 Gouranga was defendant, and in his written statement he had taken the stand that defendant No. 1 was not his adopted son and he was not a member of that family. It has been admitted by defendant No. 1 that after the institution of the said suit defendant No. 1 lived with Gouranga and he was giving money to Gouranga whenever he needed the same. P. Ws. 9 and 10 have deposed that defendant No. 1 persuaded Dalimba, the wife of Gouranga, Latika and Jagabandhu, respectively defendants 2, 3 and 4 in that suit, not to contest the said suit as that would enable him to get back the properties sold by Gouranga and Latika, and thereafter he (D. 1 in the present suit and plaintiff in T.S 52/64) would give some properties to these defendants in T.S No. 52/64. Their statements to the above effect get support from the admission of defendant No. 1 that after the institution of the suit he stayed with Gouranga and paid him money whenever he needed the same. That fact goes to show that the plaintiff in that case made attempts and efforts to win over Gouranga by obliging him by payment of money. It is further seen that though Gouranga contested the claim of the plaintiff in that suit, in his written statement neither he nor any of the other defendants contested the suit nor took any steps for setting aside the ex parte decree passed in that suit. The above facts induce one to accept as true the above-mentioned statements of P. Ws, 9 and 10, and all these facts go to show that the ex parte decree in T.S No. 52/64 was collusive. Both the Courts below on a consideration of several features based on the evidence on record have arrived at the concurrent finding of fact that the ex parte decree in T.S No. 52/64 was obtained by collusion of the parties in that suit, and Mr. Mohanty has not been able to show any satisfactory ground on which the said concurrent finding of fact can be negatived in this second appeal.

    8. It was urged by Mr. Mohanty that even though it was held that the ex parte decree in T.S No. 52/64 was obtained by collusion, that decree would operate as res judicata in this case. In support of his above submission Mr. Mohanty cited the single Judge decision reported in AIR 1950 All 488 (Baboo v. Mt. Kirpa Dei). The decision in that case was rendered entirely on facts different from those in the present case. In that case the question was whether ‘even if one of the defendants to the suit was in collusion with the plaintiff, the decision could be said to be binding on the defendants on the principle of res judicata.'’ That question was decided in the affirmative. In the present case before me, it has been found by both the courts below that the ex parte decree in T.S No. 52/64 was obtained by the plaintiff in collusion with all the defendants in the said suit. That being so, the above decision is not applicable to the present case.

    9. Under Section 44 of the Evidence Act any party to a suit or other proceeding may show that any judgment, order or decree, which is relevant u/Ss. 40, 41 and 42 and which has been proved by the adverse party, was delivered by a court not competent to deliver it or was obtained by fraud or collusion. The provision of S. 44 is not an idle provision. If it is proved that a judgment was obtained by collusion that fact will affect its force, effect, executability and value. So it will be absolutely incorrect to say that even if a judgment is obtained by fraud or collusion that will operate as res judicata in a subsequent suit. That will be giving premium to sham and illegal deals, shutting out persons striving to uphold their rightful cause or claim by exposing illegal or unconscionable bargains.

    10. In Manchharam v. Kalidas ((1895) ILR 19 Bom. 821) it was held that u/S. 44, Evidence Act, a party to a proceeding is never disabled from showing that a judgment or order has been obtained by the adverse party by fraud.

    11. In Nistarini Dassi v. Nundo Lall Bose, ((1899) ILR 26 Cal 891) it was held that an innocent party may be allowed to prove in one court that a decree obtained against him in a different proceeding in another court of concurrent jurisdiction was obtained by fraud, and if the court be of opinion that such decree so obtained in the other court cannot stand it has jurisdiction to treat that decree as a nullity and render its effect nugatory.

    12. In Section 44 of the Evidence Act the word “Collusion” has been placed exactly on the same footing as the word “fraud” in the said section.

    13. In the case reported in AIR 1955 Pat 66 (Bishunath Tewari v. Mst. Mirchi) it has been observed:—

    “Thus, a survey of the authorities of the different High Courts shows that a judgment, decree or order of a court of competent jurisdiction can be treated as a nullity under Section 44 of the Evidence Act and its effect rendered nugatory if it is shown that it was obtained by fraud or collusion of the antagonist”.

    14. On the above discussion I reject the above mentioned contention of Mr. Mohanty.

    15. Mr. Mohanty in vain challenged the finding of the courts below that defendant No. 1 is not the adopted son of Gouranga. In Ext. 15 (a), the relevant entry in respect of defendant No. 1's service book in the Board of Revenue, he is shown as the son of Bhikari Charan Das, his natural father. That entry shows that defendant No. 1 was appointed in service on 24-8-60, i.e only after 2½ months of the alleged adoption. If the fact of adoption was correct, then in that entry defendant No. 1 would not have been shown as the son of Bhikari Charan Das. That entry was certainly made on the declaration made by defendant No. 1 while he was appointed in Government service. That entry is a very strong piece of evidence to discard the case of adoption put forward by defendant No. 1. The defendant has not produced any documentary evidence to nullify the effect of Ext. 15 (a). Though this defendant stated that he has been described as the son of his adoptive father in the voters' list and in certain sale deeds and applications before the Sarpanch, he did not produce any of these documents. The oral evidence of D. Ws. 1, 2 and 4 regarding adoption has been rightly disbelieved by both the courts below. D.W 1 admitted that she did not go to the temple where the alleged adoption ceremony took place. It was stated that quite a number of persons of the neighbouring villages were present at the time of the adoption, but none of those persons was examined in this case. The finding of adoption, which is a finding of fact, is based on proper consideration of the relevant evidence on record, and Mr. Mohanty has not been able to show any convincing reason to unsettle the said finding of fact in this second appeal. Hence the said finding is confirmed.

    16. Mr. Mohanty faintly submitted that this suit is not maintainable as it was instituted by a number of plaintiffs who purchased specific lands under separate sale deeds, and they claim distinct interests in respect of separate portions of the suit property. In this connection Mr. Mohanty states that as all the plaintiffs cannot be said to be jointly interested in the subject matter or the cause of action of the suit, and the right to sue does not accrue out of a single transaction, the suit has to be dismissed as not maintainable. There is absolutely no merit in this submission.

    17. The plaint case of purchase of the A schedule lands by plaintiffs 1 and 2 is not contested. Plaintiffs 3 to 10 purchased different portions of the suit B schedule property by different sale deeds, but all of them in this suit are interested in a declaration that the ex parte decree in T.S No. 52/64 was obtained by collusion, that defendant No. 1 is not the adopted son of Gouranga, and that he has no right, title or interest in Gouranga's property. All these plaintiffs have purchased the property from defendant No. 3 and are jointly interested in setting aside the decree in T.S No. 52/64. Only common questions of law and facts arise for consideration in this suit. These plaintiffs have similar causes of action and they are jointly interested to get one decree against one and the same defendant. They therefore could rightly and legally unite their causes of action in the same suit, and the same is maintainable under the provisions of Order 1, Rule 1 and Order 2, Rule 3 of the CPC.

    18. O. 1, R. 1 of the CPC provides that—

    “All persons may be joined in one suit as plaintiffs where—

    (a) any right to relief in respect of, or arising out of, the same act or transaction or series of acts or transactions is alleged to exist in such persons, whether jointly, severally or in the alternative; and

    (b) if such persons brought separate suits, any common question of law or fact would arise.”

    19. O. 2, R. 3 of the CPC inter alia provides that any of the plaintiffs having causes of action in which they are jointly interested against the same defendant or the same defendants jointly may unite such causes of action in the same suit. The institution of this suit by the plaintiffs clearly comes within the aforesaid provisions, and the above contention raised by Mr. Mohanty is entirely frivolous.

    20. On the above discussions, considerations and conclusions I hold that this appeal is absolutely without any merit and is dismissed with costs.

    21. Appeal dismissed.

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    Khirod Chandra Mohanty v. Banshidhar Khatua And Others
    (Nov 15, 1977)