Setting Aside Judgment - The Legal Chamber

Fabricated Documents Can’t Validate a Sale, Rules Supreme Court in Insolvency Case

19Nov

By The Legal ChamberNo Comments

Supreme Court

Fabricated Documents Can’t Validate a Sale, Rules Supreme Court in Insolvency Case

The Supreme Court held that for a sale by an Official Receiver to be protected under Section 37 of the Provincial Insolvency Act, 1920 upon annulment, the underlying transaction must be valid and attain finality. A transfer based on a fundamentally flawed and fabricated agreement is not a "duly made" disposition and does not survive the annulment of insolvency, requiring the property to revert to the debtor. Facts Of The Case: The case originated from a partnership firm, M/s Gavisiddheshwara & Co. Following the death of partner Singamasetty Subbarayudu, his son (the appellant) was inducted. Due to family indebtedness, the appellant was alleged to have offered his inherited one-anna share for sale via a letter. Respondent Allam Karibasappa claimed to have accepted this offer, assertin...

Supreme Court Landmark Ruling: Additional Evidence in Appeals Must Align with Pleadings

The Supreme Court held that an appellate court must examine the pleadings of the party seeking to lead additional evidence under Order XLI Rule 27(1) CPC. Permission to adduce such evidence cannot be granted unless the case sought to be established is already pleaded. The matter was remanded for reconsideration on this legal principle. Facts Of The Case: The plaintiffs, Iqbal Ahmed and another, filed a suit for specific performance of an agreement to sell dated 20.02.1995 against the defendant, Abdul Shukoor. The plaintiffs claimed they had agreed to purchase the defendant's house property for ₹10,67,000, having paid ₹5,00,000 as advance. They pleaded that they had sold their own immovable properties to arrange the funds for this purchase and were always ready and willing to perform thei...

Supreme Court Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists

The Supreme Court held that certified copies of municipal documents, duly certified under Section 376 of the Karnataka Municipalities Act, 1964, carry the same evidentiary value as originals. The failure of the Municipal Council to produce original records despite court orders justified drawing an adverse inference, and a registered sale certificate cannot be invalidated by a mere administrative resolution. Facts Of The Case: The dispute concerned two plots, No. 394 and 395, auctioned by the City Municipal Council (CMC). Respondent No. 2, Prabhudeva, purchased plot No. 395 in a 1973 auction, but his 1988 sale deed erroneously mentioned plot No. 394. Upon realizing this mistake, he applied for rectification in 1992. The CMC's Junior Engineer inspected the site and confirmed the error, lea...