SUPREME COURT RULED SALE AGREEMENT A FRAUD & SETS ASIDE SPECIFIC PERFORMANCE DECREE

by | Sep 30, 2024

Headline

The Supreme Court of India reverses the decision of the lower court in Disputed Sale Agreement Case.

Summary

The Supreme Court of India overturned concurrent rulings of lower courts certifying a disputed sale agreement, where the thumb impression of a defendant was allegedly taken on a blank stamp paper. The Supreme Court deemed the agreement a fraudulent preparation and allowed the appeal.

Key Facts

  • Case Name: Lakha Singh vs. Balwinder Singh & Anr.
  • Judges Name: Justice P.S. Narasimha and Justice Sandeep Mehta  
  • Fraudulent sale agreement transcribed after obtaining thumb impression on blank paper of the defendant.
  • Rulings Overturned: Trial Court, First Appellate Court, High Court  
  • Plaintiff: A police constable who failed to tell the defendant before the scheduled registry date .

Legal Insights

The Supreme Court of India highlighted that the agreement was made by taking signatures or thumb impressions of a defendant on blank papers constitute fraud. The failure of the plaintiff to prove willingness to complete the sale invalidated his claim for specific performance.

Impact

The judgment safeguards vulnerable individuals from fraudulent agreements and focuses on the urgency of adhering to fair practices in contract execution.

Why It Matters

This ruling focuses on the importance of good faith and transparency in transactions related to property, by making sure that illiterate or less aware parties are not exploited.

 

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Written By Archana Singh

I am Archana Singh, a recent law master's graduate with a strong aspiration for the judicial service. My passion lies in elucidating complex legal concepts, disseminating legal news, and enhancing legal awareness. I take immense pride in introducing my new legal website - The LawGist. Through my meticulously crafted blogs and articles, I aim to empower individuals with comprehensive legal insights. My unwavering dedication is to facilitate a profound comprehension of the law, enabling people to execute judicious and well-informed choices.

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