VidhiSangh

Supreme Court of India · 18/05/2022

K. SRINIVASAPPA & ORS. versus M. MALLAMMA & ORS.

[2022] 4 S.C.R. 190 · 2022 INSC 587

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

In a partition suit among the heirs of M. Krishnappa, all parties filed a compromise under which the plaintiffs relinquished their shares for cash — three daughters receiving Rs. 30 lakhs each — and the Lok Adalat passed an award on 07.07.2012 decreeing the suit in those terms. Two days later the daughters alleged fraud; the Lok Adalat rejected the plea, and again after an enquiry on remand from the High Court, noting that they had encashed the cheques and offered no explanation for not objecting at the hearing. A Single Judge of the Karnataka High Court nonetheless recalled the compromise by a cryptic order without reasons. The Supreme Court allowed the defendants' appeals: a Lok Adalat award is deemed a decree, final and binding; a writ court may set it aside for fraud only on strict proof and by a reasoned order; the daughters, who kept the money, had not proved fraud.

Issues

  1. Whether a High Court exercising writ jurisdiction may set aside a Lok Adalat award recording a compromise, deemed a decree under Section 21 of the Legal Services Authorities Act, 1987, by a cryptic order without reasons and without displacing the findings of the Lok Adalat rejecting the allegation of fraud.
  2. What standard of proof applies to a plea that consent to a compromise decree was obtained by fraud, and whether parties who retained the consideration received under the compromise can avoid it.

Provisions considered

Held

Result

Appeals allowed; the Karnataka High Court's judgment of 17.04.2015 in W.P. Nos. 20607–20609 of 2013 set aside and the Lok Adalat's award of 07.07.2012 recording the compromise in O.S. No. 876 of 2004 restored. Parties to bear their own costs.

Judgment PDF: Supreme Court of India, [2022] 4 S.C.R. 190.