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  • Rule 5 of Order XXXIII of the Code.4.
  • Rule 2 of Order XXXIII of the Code
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Citation Codes
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citation codes
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  • Rule 5 of Order XXXIII of the Code.4.
  • Rule 2 of Order XXXIII of the Code
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

This is an application in revision by the plaintiffs challenging an order of the court below that refused their prayer to sue in forma pauperis. The court below refused because it found the petitioners guilty of deliberate suppression of material facts intended to perpetrate a fraud on the court.

The petitioners had applied under Order XXXIII Rule 1 of the Code of Civil Procedure to sue the opposite party for recovery of more than Rs. 8,00,000/-. In the property schedule appended to their application they listed only two items of negligible value (old wearing apparel valued at Rs. 200/- and old cooking vessels valued at Rs. 300/-). The opposite party, in a rejoinder, disclosed that the petitioners had received substantial compensation (more than Rs. 64,000/-) in land acquisition proceedings in 1969–1970 and that they had purchased extensive first-class paddy lands; it was also disclosed that they had significant ancestral lands.

During evidence the opposite party produced documents showing multiple land purchases and acquisitions (including purchases during 1968–1971 and acquisitions in 1965), and the subordinate court found that the petitioners had material assets and had more than Rs. 60,000/- by way of compensation during 1970–1972. The subordinate court concluded that the petitioners were bound to disclose these properties in the schedule and that omission amounted to deliberate suppression.

Legal Issues Presented

  1. Whether the petitioners were guilty of deliberate suppression of material facts (landed properties and assets) required to be disclosed when seeking leave to sue in forma pauperis under Order XXXIII of the Code of Civil Procedure.
  2. Whether the court below was obliged to record a clear finding as to the nature and extent of the petitioners' interest in the properties (i.e., whether their interest was sufficient to raise the required court-fee) before rejecting the application under Order XXXIII.
  3. Whether, upon discovery of omitted property, the petitioners should have been allowed an opportunity to amend their application (relying on Ramdas Sahu v. Ram Chandra Sahu) or whether deliberate concealment requires outright rejection.
  4. Whether the petitioners' contention regarding cash funds (that cash could have been spent shortly before filing and hence might not be available) prevents drawing an inference under Rule 5 of Order XXXIII.

Arguments of the Parties

Petitioners' Arguments

  • The subordinate court should have recorded a clear finding as to the nature and extent of the petitioners' interest in the properties and whether that interest sufficed to raise the necessary amount for payment of the court-fee.
  • With respect to the cash amount, it was argued that the petitioners could lawfully have spent every paisa within two months before presenting the application; in absence of a specific finding that they still possessed cash, no adverse inference under Rule 5 of Order XXXIII could be drawn.
  • Reliance was placed on Ramdas Sahu v. Ram Chandra Sahu (AIR 1957 Pat 562) to argue that the petitioners should be allowed an opportunity to amend their application to set forth all properties.
  • After judgment was dictated, counsel (Mr. Sinha) argued that the trial court erred in paragraph 9 of its order by not appreciating documents claiming that properties had been sold; counsel contended that remaining properties were insufficient to raise the court-fee and the matter should be remanded for a clear finding on that specific point.

Opposite Party's Contentions / Evidence Presented

  • In the rejoinder petition, the opposite party disclosed that petitioners received compensation exceeding Rs. 64,000/- in land acquisition cases in 1969–1970 and that out of this money they had purchased extensive first-class paddy lands. It was also disclosed that they had substantial ancestral lands.
  • During evidence the opposite party produced documents showing that various land purchases and acquisitions had been made in the relevant period (including purchases jointly by petitioner No. 1 and his father, and purchases by petitioner No. 5), and that the petitioners had been dealing with and possessed lands of significant value.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Durga Prasad v. Srinivasa Sureka, AIR 1930 Pat 368 Omission to set out whole assets with utmost good faith makes an application to sue in forma pauperis liable to rejection at the earliest stage; if the applicant does not set forth all assets with utmost good faith, the application is to be rejected ab initio. The court relied on this authority to support the proposition that deliberate non-disclosure of material properties warrants rejection of the application for leave to sue in forma pauperis. It applied the principle to affirm the view that omission of the properties justified dismissal of the application.
Ramdas Sahu v. Ram Chandra Sahu, AIR 1957 Pat 562 Sets out that applications for leave to sue in forma pauperis should state the whole of the assets with utmost good faith; in that case the Court allowed amendment because the petitioner (though of majority) had no control or possession of family properties and was not fully aware of them. The court distinguished this authority: it rejected the submission that Ramdas Sahu permits amendment where there has been deliberate concealment. The court held that Ramdas Sahu is not an authority for permitting amendment when an applicant deliberately conceals material particulars which he is bound to disclose.

Court's Reasoning and Analysis

The court proceeded step-by-step on the record before it:

  1. The court first noted that Rule 2 of Order XXXIII of the Code imposes a duty on an applicant who seeks to sue in forma pauperis to disclose in the schedule all movable and immovable property belonging to him with estimated values so the court can examine the correctness of the claim.
  2. The subordinate court's factual findings — supported by documents produced by the opposite party — established that between 1965 and 1972 the petitioners (and their father) had purchased or acquired substantial lands and had received compensation in excess of Rs. 60,000/-. Despite these materials, the petitioners' schedule mentioned only negligible movable items.
  3. The court accepted that there might be theoretical force in the petitioners' argument about cash (that cash could have been spent), but explicitly declined to make a concluded decision on that point because the application could be disposed of on the separate ground of concealment of landed properties alone.
  4. Applying the principle in Durga Prasad, the court held that omission to disclose material assets with utmost good faith warrants rejection of the application ab initio. The court therefore treated the non-disclosure as a decisive defect.
  5. The court considered the petitioners' reliance on Ramdas Sahu but distinguished that case: in Ramdas Sahu amendment was allowed because the petitioner lacked control or knowledge of family properties; here the petitioners had an apparent interest in jointly held properties and were obliged to disclose them. The court concluded that Ramdas Sahu does not support allowing amendment where there was deliberate concealment.
  6. The court addressed the contention that some properties had been sold and that only limited lands remained. After examining sale deeds and related materials, the court identified specific parcels (including 3.20 acres purchased 4-8-1972 in which petitioner No.1 had half share, and 2.20 acres purchased 20-4-1965 in which petitioner No.1 had a share) which were still available to petitioner No.1. The court found that petitioners had an apparent interest in landed properties which they were bound to disclose.
  7. Given the petitioners' categorical stance that they possessed no other properties, the court inferred that the omission was intentional. Even if petitioners believed properties were insufficient to raise the court-fee, the court held that petitioners could not unilaterally decide this and thus had a duty to disclose and let the court determine sufficiency.
  8. For these reasons — concealment of landed properties and failure to come to court with "clean hands" as required by Order XXXIII — the court concluded that the application must fail.

Holding and Implications

Holding: The revision application is dismissed. The court affirmed the subordinate court's decision to refuse leave to sue in forma pauperis on the ground of deliberate suppression of material facts and properties. The petitioner was ordered to pay costs (hearing fee Rs. 64/-).

Implications:

  • Direct effect on the parties: The petitioners' application for leave to sue in forma pauperis was rejected and their revision dismissed with costs (hearing fee Rs. 64/-), leaving the court below's order intact.
  • The court applied established authority (Durga Prasad) to confirm that deliberate non-disclosure of assets when seeking leave to sue as a pauper justifies rejection of the application; it distinguished Ramdas Sahu where amendment was allowed due to the petitioner's lack of knowledge/control over family properties.
  • This opinion does not purport to set out any novel legal principle beyond applying the cited precedents to the facts; it enforces the existing rule that applicants must disclose all assets with utmost good faith, and that deliberate concealment is a ground for rejection.

Disposition as stated in the opinion: "Application dismissed." Hearing fee Rs. 64/- only.

    Rajib Lochan Mahton And Others v. Prafulla Kumar Ojha Opposite Party.

    1. This application in revision by the plaintiffs arises out of an order of the court below, refusing their prayer to sue in forma pauperis on the ground that they were guilty of deliberate suppression of material facts intended to perpetrate fraud upon the court.

    2. The relevant facts are these: The petitioners filed an application under order XXXIII Rule 1 of the CPC, to sue the opposite pasty for recovery of a sum above Rs. 8,00,000/-, an amount which must be said to be quite substantial. In the schedule of the properties belonging to them only two items were mentioned, namely, (1) Wearing apparels (old) valued at Rs. 200/- and (2) old cooking vessels etc., valued at Rupees 300/-. In the rejoinder petition filed by the opposite party, it was disclosed that the petitioners had received compensation in different land acquisition cases in the years 1969 and 1970, more than Rupees 64,000/- and that out of the said money received by them, they have purchased extensive first class paddy growing lands. It was further disclosed that apart from the acquisitions, they have sufficient ancestral lands of high value. Petitioner No. 3 who examined himself in support of the petitioners' case, however, stated that none of the petitioners had acquired any land, and that lands that they had were already acquired and the money which the petitioners got as compensation under the various land acquisition proceedings was spent otherwise and not for purchasing lands as alleged by the opposite party. In course of the evidence, however, the opposite party produced various documents from that, which have been discussed in sufficient detail by the court below, it is apparent that during the period 1968 to 1971, petitioner No. 1 along with his father purchased extensive lands under 5 registered documents jointly, for a value of rupees about 11,000/-. Similarly, petitioner No. 5, Khetu Mehton purchased lands worth Rs. 2,700/-. Lands worth about Rs. 34,000/- were further acquired during the year 1965 in the name of the father of petitioner No. 1. The court below has further discussed the evidence to show that father of the petitioner No. 1 had acquired lands worth about Rupees 50,000/-. The learned Subordinate Judge also recorded a finding that during the years 1970 to 1972, the petitioners had more than Rs. 60,000/- by way of compensation. On all these materials, the learned Subordinate Judge took a view that the petitioners were bound to disclose all these properties in the schedule of the plaint and by omitting to do so were guilty of deliberate suppression of material facts.

    3. In this Court learned Counsel for the petitioners however, contended that the court below was bound to record a clear finding as to the nature and extent of the petitioners' interest in the properties and as to whether that was sufficient to enable them to raise the necessary amount for payment of the Court-fee. With respect to the cash amount said to have been possessed by the petitioners, learned Counsel contended that it was open to the petitioners to spend every paisa of the same within a period of two months, next before the presentation of the application and, therefore, in absence of a further finding that the petitioners still possessed the amount no inference could be drawn against them under Rule 5 of Order XXXIII of the Code.

    4. So far the cash money is concerned, there may be some force in the contention, nevertheless, I do not propose to give any concluded decision on this question, as in my opinion, this application must fail on the ground of concealment of the landed properties referred to above itself. Rule 2 of Order XXXIII of the Code impresses a duty upon an applicant when he sues in forma pauperis, to disclose in the schedule of the moveable or immovable property belonging to him with the estimated value thereof to enable the Court to examine the correctness of the applicant's claims. A bench decision of this Court in the case of Durga Prasad v. Srinivasa Sureka, (AIR 1930 Pat 368) has held that omission to set out whole assets with utmost good faith will make the application liable to rejection at the earliest stage if it reveals in course of hearing that the applicant has not stated with the utmost good faith the whole of his assets and does not set forth the assets with the utmost good faith, the application is to be rejected ab initio.

    5. Learned Counsel, however, placed reliance upon another Bench decision of this Court in the case of Ramdas Sahu v. Ram Chandra Sahu, (AIR 1957 Pat 562) and contended that in any event the petitioners should be allowed an opportunity to amend the application by setting forth all the properties. It is difficult to accept this contention as the prayer, if granted, would impair the course of justice and amount to a gross abuse of the processes of the Court. The contention does not find support in the least either on the basis of the authority cited by the learned Counsel. In this case rather as a proposition it has been clearly laid down that all applications for leave to sue in forma pauperis should set forth with the utmost good faith the whole of the assets of the applicant. The learned Judges, however, allowed an opportunity to the applicant of that case to amend the application on the ground that because the petitioner who had attained the majority was found to have no control or possession on any of the family properties. He was not even fully aware of all the family properties. I do not think, therefore, that this decision can be cited as an authority for the proposition that if and applicant deliberately conceals from the court any material particulars of his properties which he is bound to do under the scheme of Order XXXIII of the Code, he should be granted an opportunity when his concealment is detected to disclose these properties and then to lead evidence that it was not sufficient to raise the required amount of Court-fee. Reading the scheme of Order XXXIII it does not appear to be the intention. The rule of judicial amity appearing from various decisions seems to be that such a person must suffer and his application for leave to sue in forma pauperis, rejected.

    6. There is equally no merit in this contention of the learned Counsel of the petitioners that the Court should have recorded a clear finding as to the nature and extent of the interest of the petitioners in the properties in question, for the simple reason that the properties stand in the joint names of petitioner No. 1 and his father, as well as in the name of the 5th petitioner. The petitioners, therefore, have an apparent interest in the properties. In the circumstances, it was necessary for them to disclose all those properties and indicate the extent of their interest of share in the same and that their corresponding values prima facie show that they were sufficient for raising the amount of Court-fee in question. The courts below, therefore, has taken a very correct view in this case.

    7. Last leg of the argument of Mr. Sinha, which was advanced after the judgment was dictated in court was that the trial Court had committed an error of record in paragraph 9 of the order where, while considering the various documents, which were filed on behalf of the petitioners to show that all the properties acquired by them had already been sold, the Court instead of appreciating those documents and recording a finding in that aspect of the matter has rather made an observation against them that those documents show that the petitioners had been dealing with the properties and that they were persons of affluent circumstances. I permitted learned Counsel for the parties to work out the position of the lands, which might still be left with the petitioners, after the disposals under the eleven sale deeds mentioned above. The position that obtains after that verification is that 3.20 Acres of land purchased on 4-8-1972 (Ext. 1) for Rupees 20,000/- in which the petitioner No. 1 has half share and 2.20 Acres of lands, purchased on 20-4-1965 for Rs. 7,500/- (Ext. C), in which also the petitioner No. 1 has shares as this property was purchased along with four other persons. These lands were still left with and available to petitioner No. 1 over which he had title. Learned Counsel, however, contended that these properties need not have been mentioned in the schedule at all as they were not sufficient to raise the requisite amount of Court-fee to be paid on the plaint. He accordingly contended that the matter should be remanded to the court below for recording a clear finding on this aspect of the matter.

    8. In order to resolve the controversial questions and shorten the matter as already said above. I permitted the learned Counsel to argue the matter to satisfy this Court in view of the so-called error of record committed by the court below and on examining the material facts and the circumstances of this case; and in view of the proposition indicated in various authorities, some of which have been cited earlier, in my view, the petitioners have been guilty of concealing or suppressing these properties from the knowledge of the Court. In view of the categorical attitude and stand taken by the petitioners, that they possessed no other properties, except the two items mentioned in the schedule, they cannot be heard to be contended in this court that the court below has failed in its duty after dismissing their application on the ground of concealment of the properties and to record a further finding as to whether those properties are sufficient or not for the purpose of paying the Court-fee in question. As discussed above, it is manifest that the intention of the parties was to suppress the properties and not to omit them for the reasons given by the learned Counsel in course of his ingenious argument in this Court. That apart, even if the petitioners might have thought in their wisdom that the properties were insufficient for raising the requisite amount of Court fee I do not think that they could have decided themselves the correctness of their stand.

    9. In this view also, it was their bounden duty to inform the Court by a proper disclosure of the existence of these properties and then to prove by proper materials that in spite of these properties available to them, could be declared as pauperis. As already indicated above the scheme of Order XXXIII enjoins upon an applicant to come to the Court with clean hands and honestly disclosing his all assets on which consideration the Court may grant him leave to sue in forma pauperis.

    10. I do not find any merit in this application and, accordingly, dismiss the same with cost. Hearing fee Rs. 64/- only.

    11. Application dismissed.

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    Rajib Lochan Mahton And Others v. Prafulla Kumar Ojha Opposite Party.
    (Jul 24, 1975)