RAM CHANDRA SINGH versus SAVITRI DEVI AND ORS.

RAM CHANDRA SINGH versus SAVITRI DEVI AND ORS.

Once a judgment or decree is obtained by fraud, the principles of res-judicata do not apply, and the High Court was in error to dismiss the review petition without considering whether a consent order obtained in absence of the auction purchaser and by fraud can nullify his rights.

Parties
Appellant: Ram Chandra Singh; Respondent: Savitri Devi; Respondent: Arun Prakash Pandey; Respondent: State Bank of India
Jurisdiction
India
Judgment Date
09 October 2003
Procedural Posture
Civil Appeal / Appeal From Patna High Court Orders in Civil Revision and Civil Review
Outcome
Appeals allowed; impugned judgments set aside; matters remanded to High Court for fresh consideration.
Legal Topics
Res Judicata, Fraud on Court, Auction Sale, Consent Decree, Partition Suit
Civil Procedure Property Law Res Judicata Fraud on Court Auction Sale Consent Decree Partition Suit

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Parties

Ram Chandra Singh

Appellant

Savitri Devi

Respondent

Arun Prakash Pandey

Respondent

State Bank of India

Respondent

Procedural Posture

Civil Appeal / Appeal From Patna High Court Orders in Civil Revision and Civil Review

Legal Issues

  1. 1 Whether the dismissal of review petition on the ground of res-judicata was valid when consent order was allegedly obtained by fraud and appellant was not a party to the appeal
  2. 2 Effect of fraud on court orders and the applicability of res-judicata
  3. 3 Rights of third parties (auction purchaser) against consent orders obtained in their absence

Ratio Decidendi

Once a judgment or decree is obtained by fraud, the principles of res-judicata do not apply, and the High Court was in error to dismiss the review petition without considering whether a consent order obtained in absence of the auction purchaser and by fraud can nullify his rights.

Court Disposition

Appeals allowed; impugned judgments set aside; matters remanded to High Court for fresh consideration.

Orders

  • High Court to consider the matters afresh, taking into account subsequent events including creation of third party rights.
  • High Court to adjust equities between parties and not allow unjust enrichment by the Bank.