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AMICUS AI
Citation Codes
Neutral Citations
2007 INSC 764
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Sub-section (5) of Section 72-F of the Kerala Land Reforms Act, 1963
  • Section 72 of the Kerala Land Reforms Act, 1963
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Cites
Cited by
Citation Codes
Neutral Citations
2007 INSC 764
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Sub-section (5) of Section 72-F of the Kerala Land Reforms Act, 1963
  • Section 72 of the Kerala Land Reforms Act, 1963
Smart Summary

Factual and Procedural Background

An extent of 21 cents in Survey No. 1042/2, belonging to Karikkode Sastha and Mahavishnu Temple managed by the Cochin Devaswom Board, was alleged to have been encroached upon by Respondents 3 and 4. A devotee, T. K. Asokan, lodged CDB No. 3 of 1996 before the Kerala High Court, resulting in a 12-6-1997 order directing the Board to take possession.

Respondents 3 and 4 challenged that order in SLP (C) No. 12985 of 1997. On 30-3-1998, the Supreme Court refused to interfere, but allowed them to file a civil suit to establish title. Consequently, the High Court on 9-9-1998 again ordered the Board to secure possession.

Respondents then instituted OS No. 399 of 1998 in the Sub-Court, Ernakulam, seeking a declaration of title and injunction. While it was pending they proposed (6-7-2000) an exchange: the disputed 21-cent plot (Sy. 1042/2) for 30 cents in Sy. 1043 that already lay in front of, and in the possession of, the temple.

After obtaining an ex-parte direction in OP No. 20251 of 2000, the Board passed a resolution (29-8-2000) and executed a compromise (30-8-2000). The Sub-Court decreed OS 399/1998 on 18-9-2000 in terms of that compromise.

The present appellant, another devotee, filed OP No. 19728 of 2001 contending that the settlement was collusive and detrimental to temple interests. The High Court dismissed the writ, prompting this appeal to the Supreme Court.

Legal Issues Presented

  1. Whether the compromise dated 30-8-2000 and the consequent decree dated 18-9-2000 were vitiated by fraud or collusion and therefore liable to be set aside.
  2. Whether the bar under Order 23 Rule 3-A of the Code of Civil Procedure prevents a devotee, who was not a party to the suit, from challenging such a compromise decree in writ proceedings.
  3. Whether the Cochin Devaswom Board acted contrary to earlier judicial directions by relinquishing Sy. 1042/2 in favour of private respondents.

Arguments of the Parties

Appellant's Arguments

  • The Board “got nothing” in the exchange because Sy. 1043 was already temple property and in its possession; giving away Sy. 1042/2 violated earlier Supreme Court and High Court orders.
  • The compromise was the result of fraud and collusion between Board officials and Respondents 3-5; the 1976 Land Reform order relied on by Respondents did not even mention Sy. 1043.
  • Order 23 Rule 3-A CPC does not bar the High Court from examining a compromise decree tainted by fraud involving a statutory body.

Respondents 3-5's Arguments

  • The settlement was validly entered after legal advice and a formal Board resolution; the decree has attained finality and cannot be disturbed by a third party.
  • Order 23 Rule 3-A CPC bars any suit to set aside a compromise decree, and by extension, writ intervention.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court found “considerable force” in the appellant’s contention that the Board surrendered valuable temple property (Sy. 1042/2) while receiving nothing new, because Sy. 1043 was already in the temple’s possession and housed three shrines. The chronology suggested collusion: Respondents claimed to be “cultivating tenants” of land that was patently part of the temple forecourt, and Board officials accepted that claim without inquiry.

The Court emphasised the duty of trustees and courts to protect religious property from usurpation, noting that fraudulent transfers often occur through passive or active collusion by insiders.

On the procedural objection, the Court held that Order 23 Rule 3-A CPC does not preclude the High Court from scrutinising a compromise decree where fraud or collusion by a statutory authority is alleged. Earlier High Court and Supreme Court orders had mandated immediate recovery of Sy. 1042/2; the Board’s unilateral compromise, without seeking leave of the court, was therefore improper.

Consequently, the compromise decree was unsustainable and liable to be set aside.

Holding and Implications

APPEAL ALLOWED.

Key directions:

  • The compromise dated 30-8-2000 and decree dated 18-9-2000 in OS No. 399/1998 are set aside.
  • The Devaswom Board must immediately take possession of Sy. 1042/2, as earlier directed.
  • Respondents 3-5 may pursue OS 399/1998 afresh; the Sub-Court shall decide it according to law.
  • The Collector, Ernakulam shall investigate the 21-2-1976 Land Reform order and take remedial action.
  • The Board may proceed against any encroachment in Sy. 1043.
  • No order as to costs.

Implications: The decision reinforces judicial vigilance over temple and Devaswom properties, clarifies that fraud-tainted compromise decrees involving statutory bodies can be challenged in writ jurisdiction despite Order 23 Rule 3-A CPC, and deters collusive settlements that undermine prior court orders.

To access the original judgment, please Sign In or Subscribe.

    A.A Gopalakrishnan v. Cochin Devaswom Board And Others

    K.G Balakrishnan, C.J— Leave granted. Application for exemption from filing OT is granted.

    2. An extent of 21 cents of land in Survey No. 1042/2 of Mulanthuruthy Village, Kanayannur Taluk, Ernakulam District, belonged to Karikkode Sastha and Maha Vishnu Temple under the management of Cochin Devaswom Board (“the Board”, for short).

    3. One T.K Asokan filed a complaint before the High Court of Kerala alleging that Respondents 3 and 4 had encroached upon the said land, and were in illegal possession. The complaint was registered as CDB No. 3 of 1996. The High Court by order dated 12-6-1997 held that the said Sy. No. 1042/2 (21 cents) was part of the property of Karikkode Sastha and Vishnu temple and gave a direction to the Board to take possession of the said land without delay. Respondents 3 and 4 challenged the said order before this Court in SLP (C) No. 12985 of 1997 contending that they had acquired title over the said land by their long possession. This Court disposed of the said petition by the following order dated 30-3-1998:

    “In the facts and circumstances of this case, having heard learned counsel for the parties, we do not think it a fit case for our interference against the impugned direction of the High Court. The property in question should be delivered to the Devasthanam, if it has not been delivered in the meantime. But since the High Court has given a declaration in respect of the property in a summary proceedings, it would be open for the petitioners to establish its title in a regularly instituted civil suit, if so advised and in the event such a suit is filed, the finding of the High Court will not be a bar for the civil court.”

    In view of the said order of this Court, the High Court closed the complaint (CDB No. 3 of 1996) by order dated 9-9-1998, with a direction to the Devaswom Board to take possession of the said land, by taking police help, if necessary.

    4. Respondents 3 to 5 thereafter filed OS No. 399 of 1998 on the file of the Sub-Court, Ernakulam, against the Devaswom Board seeking declaration of title in respect of Sy. No. 1042/2 and consequential injunction. During the pendency of the suit, they submitted a representation dated 6-7-2000 to the Board requesting for a settlement. They proposed an exchange of Sy. No. 1042/2 (21 cents of land which belonged to Karikkode Devaswom) with Sy. No. 1043 (30 cents of land which was in the possession of Karikkode Devaswom, but title to which was claimed by Respondent 3).

    5. Without even waiting for a reply for the letter proposing settlement, Respondents 3 to 5 filed a writ petition (OP No. 20251 of 2000) before the High Court and secured an ex parte order dated 27-7-2000 directing the Board to consider their representation and pass an order thereon. In view of the said direction, the Board considered the representation and passed a Resolution dated 29-8-2000 agreeing to the proposal and entered into a compromise with Respondents 3 to 5 on 30-8-2000. The said compromise petition recorded a settlement that the parties will enter into a deed of exchange, by which the plaintiffs (Respondents 3 to 5 herein) would surrender their title and interest in respect of 30 cents in Survey No. 1043 (Resurvey No. 175/5) of Mulanthuruthy Village, Kanayannur Taluk, Ernakulam District [which was the subject-matter of Purchase Certificates Nos. 581/76 and 586/76 dated 21-2-1976 issued by the Deputy Collector (LT) No. IV, Ernakulam] where the three idols/vigrahas of Upadevanmar (Sri Malikappuram, Sri Malanada and another) were situated in favour of the defendant (Board) and in exchange the defendant (Board) would surrender the right, title and interest in respect of Sy. No. 1042/2 (measuring 21 cents) in favour of the plaintiffs. The Sub-Court, Ernakulam decreed OS No. 399 of 1998 on 18-9-2000 in terms of the said compromise.

    6. The appellant herein challenged the said compromise in writ petition (OP No. 19728 of 2001) before the High Court alleging that the settlement of the suit was collusive and the land which was agreed to be transferred by Respondents 3 to 5 by way of exchange in favour of the Devaswom Board was the property of the Karikkode Temple itself; and that to defeat the directions by this Court and the High Court, requiring surrender of possession of Sy. No. 1042/2, the officers of Devaswom Board had colluded with Respondents 3 to 5 and permitted them to retain Sy. No. 1042/2 illegally. The writ petition was dismissed by holding that the Devaswom Board got possession of 30 cents of land in exchange for 21 cents in pursuance of a settlement between the parties, and therefore there was no case for interference. The said judgment of the High Court is under challenge in this appeal.

    7. We have heard learned counsel for the appellant and learned counsel for the respondents. We find considerable force in the contention of the appellant that the Devaswom Board really got nothing out of the settlement and it gave to Respondents 3 to 5 a property (Sy. No. 1042/2) which belonged to the Karikkode Temple in regard to which this Court and the High Court had specifically directed the Board to take immediate possession. Survey No. 1042/2 adjoins the temple. Survey No. 1043, it is seen, is the land in front of the temple and is a part of the temple where there are three structures housing idols/vigrahas of Upadevadas. The fact that the said Sy. No. 1043 had always been in the possession and enjoyment of the temple, is not in dispute. The fact that Sy. No. 1043 was never under cultivation of Respondents 3 to 5 at any time, is also not seriously contested.

    8. During the hearing the learned counsel for Respondents 3 to 5 made available a copy of an order dated 21-2-1976 passed by the Special Tahsildar, LR No. II, Ernakulam in SMP No. 3458 of 1975 to establish the alleged title to Sy. No. 1043. After perusing the said order, learned counsel for the appellant pointed out that the said order did not refer to Sy. No. 1043. He submitted that even if it related to Sy. No. 1043, it was evident that the third respondent, an employee of the Board had apparently in collusion with some Revenue officials, got a suo motu proceedings initiated under Section 72 of the Kerala Land Reforms Act, 1963 showing third respondent as a “cultivating tenant” under Karikkode Devaswom, and secured an ex parte order dated 21-2-1976, sanctioning the assignment of the land under sub-section (5) of Section 72-F of the said Act. The learned counsel for the appellant further submitted that the very fact that the third respondent, an employee of the temple, has been shown to be the “cultivating tenant” of the land in front of the temple, containing the structures where Upadevadas are installed, in a suo motu proceedings, clearly demonstrated collusion/fraud in securing the order dated 21-2-1976. Be that as it may.

    9. What is surprising is that when Respondents 3 to 5 claimed ownership of Survey No. 1043, which was the front portion of the temple premises in the possession of the temple (in the proposal for settlement dated 6-7-2000), the Devaswom Board, instead of investigating and verifying as to how they could claim ownership over temple property, strangely agreed for a settlement under which the temple was to get Sy. No. 1043 (which was a temple land already in its possession), in exchange for giving away another temple land (Sy. No. 1042/2) to Respondents 3 to 5. It is significant that the Board Resolution dated 29-8-2000 agreeing for the settlement proposal clearly records that Sy. No. 1043 is already in the possession of the temple.

    10. The properties of deities, temples and Devaswom Boards, require to be protected and safeguarded by their trustees/archakas/shebaits/employees. Instances are many where persons entrusted with the duty of managing and safeguarding the properties of temples, deities and Devaswom Boards have usurped and misappropriated such properties by setting up false claims of ownership or tenancy, or adverse possession. This is possible only with the passive or active collusion of the authorities concerned. Such acts of “fences eating the crops” should be dealt with sternly. The Government, members or trustees of boards/trusts, and devotees should be vigilant to prevent any such usurpation or encroachment. It is also the duty of courts to protect and safeguard the properties of religious and charitable institutions from wrongful claims or misappropriation.

    11. Learned counsel for Respondents 3 and 4 submitted that the settlement in the suit (OS No. 399 of 1998) was validly arrived at between them (the plaintiffs) and the Devaswom Board (the defendant), that the Devaswom Board had considered the proposal after taking legal advice and had duly passed a resolution to settle the suit. It is further submitted that a decree having been made in terms of the compromise and such decree having attained finality, it cannot be questioned, interfered or set aside at the instance of a third party in a writ proceeding. Order 23 Rule 3 CPC deals with compromise of suits. Rule 3-A provides that no suit shall lie to set aside a decree on the ground that the compromise on which the decree is based was not lawful. We are of the considered view that the bar contained in Rule 3-A will not come in the way of the High Court examining the validity of a compromise decree, when allegations of fraud/collusion are made against a statutory authority which entered into such compromise. While it is true that decrees of civil courts which have attained finality should not be interfered with lightly, challenge to such compromise decrees by an aggrieved devotee, who was not a party to the suit, cannot be rejected, where fraud/collusion on the part of officers of a statutory board is made out. Further, when the High Court by order dated 9-9-1998 had directed the Board to take possession of Sy. No. 1042/2 immediately from Respondents 3 and 4 in CDB No. 3 of 1996, in a complaint by another devotee, it was improper for the Board to enter into a settlement with Respondents 2 and 3, giving up the right, title and interest in Sy. No. 1042/2, without the permission of the court which passed such order. Viewed from any angle, the compromise decree cannot be sustained and is liable to be set aside.

    12. In view of the above, we allow this appeal as follows:

    (i) The compromise dated 30-8-2000 and compromise decree dated 18-9-2000 in OS No. 399 of 1998 on the file of the Sub-Court, Ernakulam, are set aside.
    (ii) The first respondent Board is directed to take possession of Sy. No. 1042/2 as already directed by this Court and the High Court.
    (iii) It is open to Respondents 3 to 5 to pursue OS No. 399 of 1998, if they so desire, in which event, the Sub-Court, Ernakulam, shall dispose it in accordance with law.
    (iv) The Collector, Ernakulam is directed to hold an enquiry as to the circumstances in which the order dated 21-2-1976 in SMP No. 3458 of 1975 was passed on the file of the Special Tahsildar, LR No. II, Ernakulam, and take consequential remedial action.
    (v) The first respondent Board is at liberty to take action in accordance with law in regard to Survey No. 1043.
    (vi) Parties to bear their respective costs.

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    A.A Gopalakrishnan v. Cochin Devaswom Board And Others
    (Jul 19, 2007)