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Supreme Court of India

SURAIN SINGH (DEAD) BY LRS. AND ORS.versusMEHENGA (DEAD) BY LRS.

Citation
1996 INSC 164
Decided
1 February 1996
Disposal
Dismissed

Holding

The High Court was entitled to re‑examine the factual issue of consideration, and its finding of no proof of consideration stands, so the appeal is dismissed.

Summary

The appellants challenged a sale deed dated 29 September 1959, alleging that it was obtained by fraud, misrepresentation and without consideration. The trial court dismissed the suit, finding the deed valid; the first appellate court reversed that finding, holding that adequate consideration had been paid and no fraud existed. The Punjab & Haryana High Court, noting the divergent findings, examined the evidence afresh and concluded that no proof of consideration was established, thereby reversing the appellate decree and confirming the trial court's dismissal. On special leave, the Supreme Court examined whether the High Court was justified in re‑examining the factual issue. It held that, given the conflicting findings of the lower courts, the High Court was entitled to make a fresh factual determination, and as a finding of fact, it was not open to further interference. Consequently, the appeal was dismissed without costs.

Issues considered

  • Whether the sale deed executed on 29 September 1959 was valid despite allegations of fraud, misrepresentation and lack of consideration.
  • Whether the High Court was justified in re‑examining the factual issue of consideration despite the appellate court's finding.
  • Whether the Supreme Court can interfere with the High Court's finding of fact on the question of consideration.

Legislation cited

Subjects

sale deedconsiderationfraudmisrepresentationTransfer of Property ActCode of Civil Procedurefinding of factappellate jurisdictioncivil appeal

Judgment

A                 SURAIN SINGH (DEAD) BY LRS. AND ORS.
                                   v.
                        MEHENGA (DEAD) BY LRS.

                                FEBRUARY 1, 1996

B                [K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

            Code of Civil Procedure, 1908/Tra11sfer of Property Act, 1872:
                      •
         Suit-l'lea that it was obtai11ed by fraud, misrepresentation and without
C consideratio11-Trial Court dismissi11g the suit-Appellate Court reversed the
  finding--ltigh Cowt considered the evide11ce and reversed the decree of the
  appellate court a11d confinned the decree of the Ilia/ Cowt-Held : In view
  of the diverse views by the trial court and the appellate court, the High Court
  was impelled t0.go into the question a11d record a finding-Matelia/ evidence
  and relevant circumstances not adverted to by the Jim appellate coun-There-
D fore the High Court had 1ightly do11e that exercise-Being a finding of fact no
  fwther inte1ference called for.

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2195 of
    197?:        •                   .

E        From the Judgment and Order dated 27.9.76 of the Punjab &
    Haryana High Court in R.S.A.No. 878 of 1964.

            S.K. Gambhir for the appellants.

            K.K. Mohan for the Respondents.
F
            The following Order of the Court was delivered :

            This appeal by special leave arises from the judgment of the Punjab
    & Haryana High Court in R.S.A.No. 878 of 1964 dated September 27, 1976.
    The appellants/plaintiffs were non-suited by the High Court on the finding
G that the sale deed was without consideration (Ex. P-1) executed and
  registered on September 29, 1959. Shri S.K. Gambhir, the learned counsel
  for the appellants contended that the question whether consideration has
  been passed is a pure question of fact. The appellate Court having gone
  into that aspect as Court of fact and having entered a finding, reversal
H thereof by the High Court is illegal. It is not in dispute that in the suit the
                                      1152
                              SURAIN SINGH v. MEHENGA                           1153

      respondents contended that the sale deed was obtained by fraud, mis- A
' +   representation and without consideration. The trial Court dismissed the
      suit. But on appeal, the appellate Court reversed the finding and held that
      neither fraud nor misrepresentation was made out. Adequate consideration
      was passed under the sale deed. Therefore, it is a valid sale deed. The High
      Court after considering the evidence ultimately recorded a finding that
                                                                                   B
      there is no proof that the appellants had paid the consideration. In that
      behalf, the High Court has looked into the accounts maintained by the
      appellant himself and it is stated thus :

                 "that no evidence has been led by the respondents/appellants to
                 show that Rs. 2350 were due to them from the appellants/respon-        C
                 dents on the basis of Bahi's account and bonds. It has also not
                 been proved by the respondents that the amount of Rs. 1650 was
                 paid by them to the appellants."

             On the basis of the said finding, the High Court has reversed the
      decree of the appellate Court and confirmed, though for different reasons, D
      the decree of the trial Court. Though normally the High Court might not
      have interfered with the finding recorded by the appellate Court, in view
      of the diverse views by the trial Court and the appellate Court, the High
      Court was impelled to go into the question and recorded a finding. The
      material evidence and relevant circumstances were not adverted to by the E
      first appellate Court. The High Court, therefore, had done that exercise.
-     It being a finding of fact, we do not find it a fit case for our further
      interference.

               The appeal is, therefore, dismissed. But in the circumstances, without
      costs.                                                                            F
      G.N.                                                        Appeal dismissed.


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