1997 (12) TMI 671 - HC - Indian Laws

Summary

Issues Involved:
1. Fraud by Plaintiffs.
2. Defendants' Clean Hands.
3. Validity of Consent Terms.
4. Allegations Against Advocates.
5. Suppression of Material Facts.

Issue-wise Detailed Analysis:

1. Fraud by Plaintiffs:
The court examined whether the plaintiffs committed fraud to entice the defendants into the consent terms dated 6-11-1995 and 10-11-1995. The defendants claimed they were misled by the plaintiffs and a person named Mr. Pandey, who allegedly obtained their thumb impressions under threats. However, the court found these allegations to be inconsistent and unsubstantiated. The defendants failed to provide concrete evidence of fraud or misrepresentation. The court noted that the defendants had previously acknowledged the plaintiffs' claims and entered into multiple agreements, including the consent terms, without raising objections. The court concluded that the allegations of fraud were unfounded and dismissed them.

2. Defendants' Clean Hands:
The court assessed whether the defendants approached the court with clean hands. It was determined that the defendants had suppressed material facts and made false statements in their pleadings. They did not disclose previous adverse orders and litigation history, including the order dated 10-2-1982 by the City Civil Court, which held that the defendants were not in adverse possession of the suit property. The court emphasized that parties seeking equitable relief must be truthful and transparent. The defendants' conduct demonstrated an attempt to mislead the court, justifying the dismissal of their claims.

3. Validity of Consent Terms:
The consent terms dated 6-11-1995 and 10-11-1995 were scrutinized. The court found that these terms were executed voluntarily and with full knowledge of the parties involved. The documents were interpreted by the Official Translator of the court, and the defendants had signed them willingly. The court noted that the defendants had received substantial payments as part of the consent terms, further validating their voluntary nature. The court upheld the validity of the consent terms, rejecting the defendants' attempts to challenge them.

4. Allegations Against Advocates:
The defendants alleged professional misconduct against Advocate Mrs. Shaila Pathak, claiming she colluded with the plaintiffs. The court found no merit in these allegations. It was established that Mrs. Pathak acted with the full consent of her clients and followed proper procedures. The court highlighted that advocates have an implied authority to enter into compromises on behalf of their clients, provided they act in good faith. The court commended Mrs. Pathak for her professional conduct and dismissed the allegations against her.

5. Suppression of Material Facts:
The court emphasized the importance of full disclosure in legal proceedings. The defendants were found guilty of suppressing material facts related to previous litigation and adverse orders. They failed to mention the City Civil Court's order dated 10-2-1982, which was crucial to the case. The court reiterated that parties seeking equitable relief must be candid and transparent. The suppression of material facts alone was sufficient to dismiss the defendants' claims.

Conclusion:
The court dismissed the Notice of Motion filed by the defendants, finding that they had not come to court with clean hands and had made false and misleading statements. The allegations of fraud and professional misconduct were rejected. The court upheld the validity of the consent terms and ordered the defendants to pay costs to the plaintiffs. The court also provided a certified copy of the order to Advocate Mrs. Shaila Pathak for use in proceedings before the Maharashtra Bar Council.