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TMI Blog2009 (6) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... 005, they should loose their patience by not waiting for a couple of more weeks for the sale deed to be executed in their favour. No reasons are forthcoming as to how the amount of sale consideration, paid-up by those three individuals initially, was reconciled. It was asserted that they raised loans initially to pool up the sale consideration. When they realised that the debt burden is mounting day-by-day, they sold off this very property to Rev. K.V.K. Rao of Hyderabad. However, now in the additional material papers certificates from the Mandal Revenue Officer are produced to show that they were oozing with excessive cash yielded by their Horticulture! Since no right or interest of title can ever pass in favour of the beneficiary of the fraud and further no action can be maintained which is founded in fraud, I declare that the decree passed by the Lok Adalat pursuant to a compromise entered into by and between the parties therein in civil suit O.S. No. 20 of 2005 on the file of the III Addl. District Judge at Guntur as a nullity. Consequently, no rights of any kind would ever pass to the hands of the present applicants vis-a-vis the property in question owned and belonging to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to have filed a civil suit O.S. No. 20 of 2005 on the file of the III Additional District Judge at Guntur seeking specific performance of the agreement of sale. Immediately, a compromise memo has been filed before the court and consequently the matter has been referred to the Lok Adalat which passed a decree on 28-6-2005, duly recording the compromise between the parties. In terms of the compromise decree, the balance amount of Rs. 25,000 has been accepted and a regular sale deed has been executed on 14-7-2005. However, the Sub-Registrar, Guntur before whom the said sale deed has been presented for registration has kept the document pending for want of payment of the deficit stamp duty, as according to the Sub-Registrar, the market value of the property is far in excess of the sale consideration amount shown in the deed and hence, the stamp duty and registration fee has to be computed and paid on the basis of the market value. 4. It is further alleged that for purchasing the property, the applicants have availed loans from different persons and since the interest payable thereon is mounting, they have considered it appropriate to alienate the said property and accordingly, ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered office of the company. The built up area of the building is approximately 29,000 sq. ft., and conservatively if the construction cost is put at Rs. 500 per sq. ft. the value of the superstructure alone would be approximately Rs. 1,45,00,000. This does not include the value for the land of more than 800 sq. yards. Very conservatively put the value of the land in Guntur city in Kothapet locality in the year 2005 would be at least Rs. 2,500 per sq. yard and hence, the land value would not be less than Rs. 2 crores. Thus, by the worst estimate, the asset would not have been anything less than Rs. 3.5 crores worth. But, very strangely and most inexplicably, this asset was offered for sale for the peanut value of Rs. 50 lakhs. Far stranger, is the modus operandi adopted in the matter. Nandyal town is far removed from Guntur city and is located in Kurnool district. If the company and its directors are passing through any financial distress, requiring any immediate assistance, an attempt would have been made to ensure that wider publicity is given to the deal to secure as nearer a possible price for the market value. Every attempt would have certainly been made to secure a valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to raise the further sum of Rs. 25,000 and also complete the sale transaction by securing the execution of sale deed is indeed stranger than fiction. 6. Obviously, all the three applicants herein and their other three accomplices (who are the plaintiffs in the civil suit) have devised a method to use the platform of the courts, to perfect an impermissible act of theirs. No agreement of sale has been entered into by them with the company. It was not produced, at any rate before this court. In spite of providing an opportunity, they have not produced material in that regard. They have made available a copy of the plaint filed by them before the civil court in the additional material papers filed into the court pursuant to the orders passed on 23-2-2009. The plaint fully describes all the six plaintiffs. The first applicant herein is incidentally, the first plaintiff. He has been described to be 35 years old in the plaint, whereas in the present application which is moved in 2007, he has been described as 27 years old. In the sale deed said to have been executed by the company on 14-7-2005, he is described to be 25 years old. The plaint described them as business people whereas an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1987 and it shall not form part of the costs payable by the defendants. 2.The suit may be decreed. 3.The balance of sale consideration is paid by the plaintiffs and received by the defendant. 4.The defendant is agreed to execute registered sale deed in respect of the suit schedule property on or before July 15, 2005. 5.If the defendant fails to execute the document within the above mentioned period, plaintiffs are at liberty to execute the award through court process." 8. Accordingly, the sale deed is said to have been executed on 14-7-2005, a day earlier to the last date set for in the terms of compromise. In less than 4 months time, from the date the civil suit is instituted, the sale deed came to be executed. 9. The whole of this exercise smacks of fraud from the very beginning. If the defendant has coolly resisted the sale transaction for nearly three years, i.e., from May, 2002 till March, 2005, there is no good reason why Sri D.R.K. Singh suddenly surfaced before the District Court and proposed to settle the matter amicably with the plaintiffs. Further, the terms of compromise have also not indicated what benefit or advantage which the defendant was to get from entering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their patience by not waiting for a couple of more weeks for the sale deed to be executed in their favour. No reasons are forthcoming as to how the amount of sale consideration, paid-up by those three individuals initially, was reconciled. It was asserted that they raised loans initially to pool up the sale consideration. When they realised that the debt burden is mounting day-by-day, they sold off this very property to Rev. K.V.K. Rao of Hyderabad. However, now in the additional material papers certificates from the Mandal Revenue Officer are produced to show that they were oozing with excessive cash yielded by their Horticulture! Was it not said that "dolosus versatur in generalibus"--a person intending to deceive deals in general terms. 11. Tricksters are on the prowl in the society. They will not hesitate to do all that is necessary for securing a ring of authenticity and acceptability for every deceitful action of theirs. If a sale deed for a very expensive immovable property is got executed pursuant to a decree passed by a civil court, it is assumed that such transactions will automatically acquire the ring of credibility around them. Little do such people realise that in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,75,000. This apart, it passes one's comprehension as to how such huge sums of money are preferred to be parted in cash instead of through commonly known secured instruments like cheques or demand drafts. It is not as if that Nandyal town does not have any banking facilities. After all, one of India's Prime Ministers has been elected to Parliament from this very constituency. 14. Fraud vitiates every transaction. No rights can ever flow to a party from a fraudulent transaction. Long years ago dealing with somewhat similar situation in S.P. Chengalvaraya Naidu v. Jagannath AIR 1994 SC 853, this is what the Supreme Court has said (pages 853 and 855 of AIR 1994 SC) : "1. 'Fraud-avoids all judicial acts, ecclesiastical or temporal' observed Chief Justice Edward Coke of England about three centuries ago. It is the settled proposition of law that a judgment or decree obtained by playing fraud on the court is a nullity and non est in the eyes of law. Such a judgment/decree--by the first court or by the highest court--has to be treated as a nullity by every court, whether superior or inferior. It can be challenged in any court even in collateral proceedings . . . 2. to 5 ** ** ** 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. They are so contradictory in terms and content. When these contradictions are brought to the notice of learned counsel, Sri A. Sanjeev Kumar, realising the difficult situation brought about, he has urged this court to fix up a reasonable market value for the property and then direct the applicants to pay up the balance amount in favour of the company so as to regularise the sale transaction. Learned counsel has submitted that since the applicants herein have already entered into a transaction of sale relating to this very property with Rev. K.V.K. Rao of Hyderabad on 2-7-2007, for a total sale consideration amount of Rs. 90 lakhs and they have already received Rs. 50 lakhs as advance, the balance money would be paid to the company, in case this court comes to the conclusion that the consideration paid by the applicants is hopelessly under-valued. 16. I am afraid that I cannot accede to any of these requests made by learned counsel for the applicants. A wrong doer ought not to be permitted to make a profit out of his own wrong (Lord Hatherlay in Jegon v. Vivian (L.R. 6 Ch. App. 742, at page 761). The entire transaction is vitiated by fraud played by them on the District Court a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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