A registered sale deed was accordingly issued in favour of Respondent 1 (Ex. The case for Respondent 1 was that he had purchased the properties described in the Schedule attached to his plaint on Apin a sale held by the Official Receiver in the insolvency of Respondent 2. The appellants and Respondent 2 are members of an undivided Hindu family. 27 of 1939 filed by Respondent 1 Gollapalli Ramalingamurthi against Respondent 2 Immani Venkanna and his four sons Appellants 1 to 4. The appeal arises out of Original Suit No. Gajendragadkar, J.- This is an appeal by a certificate granted by the High Court of Madras against its judgment and decree in Second Appeal No. The paramount consideration of public interest requires that the plea of fraud should be allowed to be raised and tried, and if it is upheld, the estate should be allowed to remain where it rests.įraud, Public Policy, Hindu Family, Sale Deed, Insolvency, Benami, Plea, Defence, Paramount Consideration, Ex Turpi Causa Non Oritur Actio The court will dismiss the action ex turpi causa non oritur actio. The Court found that the approach in determining the present dispute must be conditioned solely by considerations of public policy, and having regard to the fact that both the parties before the Court were confederates in the fraud, the approach that would be less injurious to public interest was to allow the plea of fraud to be raised and tried, and if it is upheld, the estate should be allowed to remain where it rests.Ī party is not estopped by his deed from avoiding it by proving that it was executed for a fraudulent, illegal or immoral purpose. The Court held that the principle invoked by the Respondent, that a man cannot plead his own fraud, did not represent the true and correct approach to the question. The Court allowed the appeal and dismissed the suit instituted by the Respondent. Therefore, the case must be considered on considerations of general policy, and the public interest would be less injuriously affected if the property is allowed to remain where it lies. The Court found that the transferee was not in possession of the properties, and the present case was entirely outside Section 84 of the Indian Trusts Act. The Supreme Court held that the paramount consideration of public interest requires that the plea of fraud should be allowed to be raised and tried, and if it is upheld, the estate should be allowed to remain where it rests. Whether the plea of fraud should be allowed to be raised and tried, and if it is upheld, whether the estate should be allowed to remain where it rests. The High Court upheld the plea of the Respondent and did not allow the fraud to be raised in defence. The trial court found that the suit properties were the joint family properties of the Respondent and the Appellants, but that the fraud had been carried out, and Respondent 2 and the Appellants could not be allowed to plead the same as a defence in the suit. A person named Kanthamani Seshamma purchased the properties with her own money but benami in the name of the Respondent on condition that he would reconvey the properties to the family of Respondent 2 whenever called upon to do so. Respondent 2 further alleged that the execution of the collusive documents between him and the Respondent came to the knowledge of some of his creditors, which led to an insolvency petition against him by one of his creditors. Respondent 2 alleged that the sale deed was nominal and collusive and not supported by any consideration. However, the Appellants and Respondent 2 trespassed on the properties, and the Respondent filed the present suit claiming a declaration of his title, possession, and past and future mesne profits. The Respondent claimed that he had purchased certain properties in a sale held by the Official Receiver in the insolvency of Respondent 2, and had a registered sale deed in his favour. 27 of 1939 against the Appellants and Respondent 2, who were all members of an undivided Hindu family.
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