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  • Illustration to Section 207 of the Indian Contract Act
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  • Illustration to Section 207 of the Indian Contract Act
Smart Summary

Factual and Procedural Background

Title Suit No. 186 of 1984 was instituted before the Subordinate Judge-V, Bhagalpur by Nrisingha Prasad Biswas and his four sons (appellants) seeking partition of family property against, inter alia, Smt. Pushpa Biswas and Apurva Kumar Biswas (respondents).

During the pendency of the suit, on 31 July 1992 the two respondents executed a registered General Power of Attorney (GPA) in favour of Umesh Chandra and Dr. Sanjeev Kumar Mishra, expressly requiring both attorneys to act jointly.

On 30 July 1996 all parties, including the respondents, filed a compromise petition. After scrutiny, the Subordinate Judge approved it on 31 July 1996 and directed that a decree be drawn accordingly.

Subsequently, on 29 August 1996 Dr. Sanjeev Kumar Mishra alone filed Misc. Case No. 13/16 of 1996 under Section 151 CPC alleging that the respondents’ signatures on the compromise were forged and seeking recall of the decree.

By order dated 7 June 2002, the Subordinate Judge dismissed the Miscellaneous Case, holding it non-maintainable because only one of the two joint attorneys had moved it and, on facts, finding no forgery.

The respondents challenged that order through Civil Revision No. 945 of 2002. A learned Single Judge of the Patna High Court allowed the revision on 21 May 2004. The present appeal is directed against that High Court judgment.

Legal Issues Presented

  1. Whether a Miscellaneous Petition filed by only one of two joint attorneys is maintainable when the GPA mandates joint action.
  2. Whether the High Court, exercising revisional jurisdiction under Section 115 CPC, could interfere with the Subordinate Judge’s concurrent findings of fact—particularly the finding that the compromise signatures were genuine.
  3. Whether execution of the compromise by the principals impliedly revoked the power of attorney, thereby disabling the attorney from challenging the compromise.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court reviewed the Subordinate Judge’s order of 7 June 2002 and the High Court’s revisional judgment, adopting the following line of reasoning:

  • Finding of Fact on Forgery: The trial court had conducted a detailed evidentiary evaluation and concluded that no forgery occurred. This was a pure finding of fact entitled to deference.
  • Limited Scope of Revisional Jurisdiction: In civil revision the High Court may correct jurisdictional errors but cannot re-appreciate evidence or disturb findings of fact where no jurisdictional error exists. The High Court exceeded these limits by reassessing the forgery claim.
  • Status and Authority of the Attorney: Dr. Sanjeev Kumar Mishra acted solely in a representative capacity. The GPA required joint action by both attorneys; therefore, a petition filed by one attorney alone was incompetent.
  • Implied Revocation of GPA: By personally signing the compromise, the principals (Pushpa and Apurva Biswas) impliedly revoked the attorney’s authority under Illustration to Section 207 of the Indian Contract Act. Consequently, the attorney’s challenge to the compromise lacked locus standi.
  • Critique of High Court Reasoning: The Supreme Court rejected the High Court’s view that the principals were obliged to consult their attorney or record his dissent before signing the compromise, emphasizing that a principal can always act independently of an agent.

Holding and Implications

APPEAL ALLOWED. The judgment of the Patna High Court dated 21 May 2004 in Civil Revision No. 945 of 2002 is set aside; the order of the Subordinate Judge-V, Bhagalpur dated 7 June 2002 dismissing Misc. Case No. 13/1996 is restored. No costs were awarded.

Implications are confined to the parties: the compromise decree stands undisturbed, and the attorney’s challenge is finally rejected. The decision reiterates well-established principles limiting revisional interference and clarifies that execution of a compromise by a principal can impliedly revoke a power of attorney. No new substantive precedent was created.

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    Deb Ratan Biswas And Others v. Most. Anand Moyi Devi & Others S

    Markandey Katju, J.:—This appeal has been filed against the impugned judgment and order dated 21.5.2004 passed by learned Single Judge of the Patna High Court in Civil revision No. 945 of 2002.

    2. The facts have been stated in the impugned judgment and we are not repeating the same except where necessary.

    3. It appears that a Title Suit No. 186 of 1984 by one Nrisingha Prasad Biswas and his four sons (who are the appellants herein) was filed against the respondents herein before the Subordinate Judge-V, Bhagalpur for partition of certain properties. While the aforesaid partition suit was pending, the defendants Smt. Pushpa Biswas and Apurva Kumar Biswas executed a General Power of Attorney on 31.7.1992 in favour of Umesh Chandra and Dr. Sanjeev Kumar Mishra and the same was registered. The terms and conditions giving the powers to the attorneys were specifically set out in the Power of Attorney itself.

    4. On 30.7.1996, the parties to the suit including Pushpa Biswas and Apurva Kumar Biswas filed a compromise petition which was forwarded to the Sheristedar for scrutiny and report. On 31.7.1996, on receiving the report of the Sheristedar dated 30.7.1996, the Subordinate Judge-V, Bhagalpur approved the terms of the compromise and directed that a decree be passed in terms of the compromise.

    5. Subsequently, on 29.8.1996, a petition purporting to be on behalf of Pushpa Biswas and Apurva Kumar Biswas was filed through the attorney Dr. Sanjeev Kumar Mishra under Section 151 CPC being Miscellaneous Case No. 13/16 of 1996 praying for recalling the order dated 31.7.1996 passed in terms of the compromise on the allegation that the signatures on the compromise were forged.

    6. On 7.6.2002, the learned Subordinate Judge-V, Bhagalpur held that Miscellaneous Petition filed at the instance of only one of the attorneys was not maintainable, as according to the terms of the power of attorney both the constituted attorneys were entrusted to act jointly. Hence, he dismissed the Miscellaneous Case filed by Dr. Sanjeev Kumar Mishra.

    7. Against that order dated 7.6.2002, the respondents herein filed a Civil Revision being Civil Revision No. 945 of 2002 which was allowed by the impugned judgment, and hence this appeal.

    8. In the order dated 7.6.2002 in Misc. Case No. 13/96, the learned Subordinate Judge-V, Bhagalpur considered the prayer of the applicant in that Miscellaneous Case that the the compromise petition had not been signed by the petitioners and their signatures were forged. The finding of fact recorded by the learned Subordinate Judge-V, Bhagalpur after detailed discussion of the evidence was that there was no forgery. This finding is based on material on record and it is a finding of fact. Hence it could not have been validly interfered with in Civil Revision by the High Court.

    9. In his order dated 7.6.2002, the learned Subordinate Judge-V Bhagalpur has held that Dr. Sanjeev Kumar Mishra was only an attorney and he cannot claim any independent capacity in the proceedings. We agree with this view. The principal Pushpa Biswas and Apurva Kumar Biswas have signed the compromise for partition of the property, which in our opinion in law amounts to implied revocation of power of attorney in favour of Dr. Sanjeev Kumar Mishra vide Illustration to Section 207 of the Indian Contract Act. Pushpa Biswas and Apurva Kumar Biswas cannot be allowed to say that their own act of signing the compromise petition was collusive and fraudulent.

    10. The learned Subordinate Judge-V, Bhagalpur has gone into the evidence in great detail and recorded findings of fact which could not have been interfered with by the High Court in civil revision. It is well settled that in civil revision the jurisdiction of the High Court is limited, and it can only go into the questions of jurisdiction, but there is no error of jurisdiction in the present case.

    11. We have carefully perused the impugned judgment of the High Court. The High Court has observed that defendants Nos. 2 and 2a viz., Pushpa Biswas and Apurva Kumar Biswas should have consulted the power of attorney Dr. Sanjeev Kumar Mishra before signing the compromise petition. This is a strange kind of reasoning. The principal is not bound to consult his attorney before signing a compromise petition.

    12. The High Court has also held that if Dr. Sanjeev Kumar Mishra was not willing to sign the compromise petition his unwillingness should have been mentioned in the compromise petition. This also is a strange reasoning. It is well-settled that even after execution of a power of attorney the principal can act independently and does not have to take the consent of the attorney. The attorney is after all only an agent of the principal. Even after executing a power of attorney the principal can act on his own.

    13. For the reasons given above this appeal is allowed. The impugned judgment and order of the High Court is set aside and the order dated 7.6.2002 of the learned Subordinate Judge-V, Bhagalpur is restored. There shall be no order as to costs.

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    Deb Ratan Biswas And Others v. Most. Anand Moyi Devi & Others S
    (Apr 15, 2011)