Legal Blog: Fraud and its Effects : The Law

Legal Blog on the Social Networks


Wednesday, August 24, 2011

Fraud and its Effects : The Law

Justice Dr. B.S. Chauhan
Supreme Court of India
The Supreme Court in Meghmala & Ors. v. G. Narasimha Reddy & Orshas examined the concept of fraud and its effect on proceedings in a court of law. The Supreme Court reiterated that 'fraud vitiates all' and also the age old saying 'Fraud avoids all judicial acts ecclesiastical or temporal'. The relevant extracts from the judgment are reproduced hereinbelow;

20. It is settled proposition of law that where an applicant gets an order/office by making misrepresentation or playing fraud upon the competent Authority, such order cannot be sustained in the eyes of law. “Fraud avoids all judicial acts ecclesiastical or temporal.” (Vide S.P. Chengalvaraya Naidu (dead) by L.Rs. Vs. Jagannath (dead) by L.Rs. & Ors. AIR 1994 SC 853). In Lazarus Estate Ltd. Vs. Besalay 1956 All. E.R. 349), the Court observed without equivocation that “no judgment of a Court, no order of a Minister can be allowed to stand if it has been obtained by fraud, for fraud unravels everything.”

21. In Andhra Pradesh State Financial Corporation Vs. M/s. GAR Re-Rolling Mills & Anr. AIR 1994 SC 2151; and State of Maharashtra & Ors. Vs. Prabhu (1994) 2 SCC 481. this Court observed that a writ Court, while exercising its equitable jurisdiction, should not act as to prevent perpetration of a legal fraud as the courts are obliged to do justice by promotion of good faith. “Equity is, also, known to prevent the law from the crafty evasions and sub-letties invented to evade law.”

22. In Smt. Shrisht Dhawan Vs. M/s. Shaw Brothers AIR 1992 SC 1555, it has been held as under:–
“Fraud and collusion vitiate even the most solemn proceedings in any civilised system of jurisprudence. It is a concept descriptive of human conduct.”
23. In United India Insurance Co. Ltd. Vs. Rajendra Singh & Ors. AIR 2000 SC 1165, this Court observed that “Fraud and justice never dwell together” (fraus et jus nunquam cohabitant) and it is a pristine maxim which has never lost its temper over all these centuries. 

24. The ratio laid down by this Court in various cases is that dishonesty should not be permitted to bear the fruit and benefit to the persons who played fraud or made misrepresentation and in such circumstances the Court should not perpetuate the fraud. (See District Collector & Chairman, Vizianagaram Social Welfare Residential School Society, Vizianagaram & Anr. Vs. M. Tripura Sundari Devi (1990) 3 SCC 655; Union of India & Ors. Vs. M. Bhaskaran (1995) Suppl. 4 SCC 100; Vice Chairman, Kendriya Vidyalaya Sangathan & Anr. Vs. Girdharilal Yadav (2004) 6 SCC 325; State of Maharashtra v. Ravi Prakash Babulalsing Parmar (2007) 1 SCC 80; Himadri Chemicals Industries Ltd. Vs. Coal Tar Refining Company AIR 2007 SC 2798; and Mohammed Ibrahim & Ors. Vs. State of Bihar & Anr. (2009) 8 SCC 751).

25. Fraud is an intrinsic, collateral act, and fraud of an egregious nature would vitiate the most solemn proceedings of courts of justice. Fraud is an act of deliberate deception with a design to secure something, which is otherwise not due. The expression “fraud” involves two elements, deceit and injury to the person deceived. It is a cheating intended to get an advantage. (Vide Dr. Vimla Vs. Delhi Administration AIR 1963 SC 1572; Indian Bank Vs. Satyam Fibres (India) Pvt. Ltd. (1996) 5 SCC 550; State of Andhra Pradesh Vs. T. Suryachandra Rao AIR 2005 SC 3110; K.D. Sharma Vs. Steel Authority of India Ltd. & Ors. (2008) 12 SCC 481; and Regional Manager, Central Bank of India Vs. Madhulika Guruprasad Dahir & Ors. (2008) 13 SCC 170).

26. An act of fraud on court is always viewed seriously. A collusion or conspiracy with a view to deprive the rights of the others in relation to a property would render the transaction void ab initio. Fraud and deception are synonymous. Although in a given case a deception may not amount to fraud, fraud is anathema to all equitable principles and any affair tainted with fraud cannot be perpetuated or saved by the application of any equitable doctrine including res judicata. Fraud is proved when it is shown that a false representation has been made (i) knowingly, or (ii) without belief in its truth, or (iii) recklessly, careless whether it be true or false. Suppression of a material document would also amount to a fraud on the court. (Vide S.P. Changalvaraya Naidu (supra); Gowrishankar & Anr. Vs. Joshi Amba Shankar Family Trust & Ors. AIR 1996 SC 2202; Ram Chandra Singh Vs. Savitri Devi & Ors. (2003) 8 SCC 319; Roshan Deen Vs. Preeti Lal AIR 2002 SC 33; Ram Preeti Yadav Vs. U.P. Board of High School & Intermediate Education AIR 2003 SC 4628; and Ashok Leyland Ltd. Vs. State of Tamil Nadu & Anr. AIR 2004 SC 2836). 

27. In Kinch Vs. Walcott (1929) AC 482, it has been held that “….mere constructive fraud is not, at all events after long delay, sufficient but such a judgment will not be set aside upon mere proof that the judgment was obtained y perjury.” Thus, detection/discovery of constructive fraud at a much belated stage may not be sufficient to set aside the judgment procured by perjury.

28. From the above, it is evident that even in judicial proceedings, once a fraud is proved, all advantages gained by playing fraud can be taken away. In such an eventuality the questions of non-executing of the statutory remedies or statutory bars like doctrine of res judicata are not attracted. Suppression of any material fact/document amounts to a fraud on the court. Every court has an inherent power to recall its own order obtained by fraud as the order so obtained is non est.


  1. How much of fraud is being played on the courts.

    To garner this there has to be an apt mechanism.

    The ordinary man/layman is in awe of the courts. His fear brings out this awe-struck persona. What are the courts doing to quell this fear?

    Absolutely nothing !

    Because the courts (advocates and their businesses) thrive on this.

    If the courts resort to result oriented advocacy and legal transcription with a committed vakalathnama, the whole problem can be solved.

    1. Type your messa
      Dear Sir /Madam,
      Hello , Are you interested to selling one of your kidney for a good amount of {$800.000USD} in India pls kindly Contact us now on our email: as we are looking for kidney donor, Very urgently who are group B,group A ,O+ve and 0+ve. Interested Donor should contact us now.

      Best Regards:
      Dr. BLESSED
      Columbia Asia Hospital
      WhatsApp: +2349075565949

  2. Rich & legally Expert can play & are playing Fraud by various tactics. For layman or poor person, who can not come to the First Step of any Court, they can be easily become victims.

    Only by passing New Laws, Acts , nothing new can be happened.

    Suppose a High Court has given Time-Limit to complete a running lower court matter within 6 months. Eventhough, lower Court, without any fear, any kind of Upper Court's Order's Dignity, goes on it's own way.

    In The Guardians & Wards Act matter in my personal case, for getting custody of my only Son from my BIL & SIL , in a Regular Civil Suit ( transferred later on to Family Court, Ahmedabad ) , I took speaking Order from Hon'ble Gujarat HC , to complete all proceedings running at lower court i.e. Family Court, continued happyly & merrily this matter to more than 5 years & that too, my Minor Son became Major on 31-10-2006, eventhough, Family Court, Ahmedabad happilly continued it beyond the Powers of ANY APEX COURT, upto 30-07-2010.!!!

  3. Fraud is common in Indian Judiciary of all Courts and Justice is exception. Every Junior Judge knows that he is giving a false judgment for obvious reasons under the hope that the Appeal will confirm his fraud. Every appellate Court knowingly gives false judgment under the belief that the High Court will endorse his fraud. Most of the High Court judges knowingly gives false orders under the belief the Supreme Court will not interfere. The fraud, corruption, caste fenatism, Group of Advocate Criminals -Judges survives with their careless ness and corruption, as per the statement of Justice Markadeya Katju, stating that every Judge of the SC receives 1000 Crores after elevation to SC and the fraud in the name of judiciary. In A.P.there are groups of Advocate-Criminals who are the group of L.N.R.-J earned 500 to 1000 crores each and even obtain Anticipatory Bails in Murder cases. The Indian Judiciary is corrupt by 90% and the Street Goondas are better than them. Eg. The Advocate-Criminals create litigations on a prime land and forces its owner to accept 20% of the value. If a litigation is for Rs.1000000, they give Rs.200000/- If the owner approaches the Courts, the owner looses his entire Rs.1000000/- and will take loans of another Rs.100000/- for Legal expenses in our judicial system.

  4. Thank You for Giving the Great InformationMSBI Online Training

  5. Hi,

    Thanks for sharing the very informative article.

  6. Fraud has been so common that the courts are held ransom by fraudulent persons. Fake document presenting to obtain bail is very common and recently in Bihar a Principal has been found creating false birth certificate for criminal to claim them as minor even they were major and committed heinous crime like murder. This Principle created record of the criminal from the very beginning of schooling and to prove it he tendered his evidence in court to prove the offender to be minor.

  7. Thanks a lot for sharing this with all of us, I like it and we can communicate. Do you need buy app ratings and reviews. To boost app ranking and double app downloads now.

  8. Nice information. i am looking SAP HANA Online Training with real time project.

  9. he article elicits assailing finality on the grounds of Fraud. can a WP u/a 32 in SC is maintainable for setting aside an order obtained from supreme court by fraud by misrepresentation and concealment of vital evidence? 9881711288,

  10. Do you want to donate your kidnney for money? Contact us now $450,000.00 urgently.
    Dr.Michael vaughn
    Phone number: +919500703584
    WhatsApp: +919500703584

  11. This is an awesome post. Really very informative and creative contents. This concept is a good way to enhance the knowledge. I like it and help me to development very well. Thank you for this brief explanation and very nice information. Well, got a good knowledge.
    SEO Course in Chennai

  12. We are urgently in need of kidney donors with the sum of $500,000.00,USD in Health India Hospital,For details reply via Email:


  13. Nanavati Hospital. we are looking for kidney donor,and you will be offer the amount of 2crore 24lak without any stress, So if you are ready to sell your kidney, this is your opportunity for you to sell your kidney. Contact this whatsApp +917631386105. Email:

  14. Nanavati Hospital. we are looking for kidney donor,and you will be offer the amount of 2crore 24lak without any stress, So if you are ready to sell your kidney, this is your opportunity for you to sell your kidney. Contact this whatsApp +917631386105. Email:

  15. We are urgently in need of kidney donors in Apollo Hospital India for the sum of $500,000.00 USD(3 Crore 80lahks). For more details contact us via the below Email.
    Whats-app: +917411218493


  16. Guest I want to thank an awesome Hospital in the person of Dr. Ashok Sarin who has made my family and i proud in trust and urgency, he bought off
    one of my kidneys for his patient with awesome amount of money in dollars, I came across his email address on the internet as published by one
    Michel and Lopez thanking him and telling the world on how he came to their rescue financially as a result of buying their kidneys without stress, I
    quickly applied via the email and i was given all the attentions I needed by Doctor in less than a week i met all the requirements, and my half
    money was like a dream when it came into my bank account before the transplant, I urge you to contact on Dr Ashok Sarin via WHATSAPP NUMBER :

    +919148549270, Email: (} for your financial awesomeness to come through like mine few months ago. I promised to do this when
    I eventually scale through.


  17. This is to inform the general public Male or Female who are healthy and 100% serious in selling their kidney should urgently contact APPOLO
    Hospital. As we have a lot of patients who are here for kidney transplant, We will offer you ($550,000.00USD). My name is Dr. M.K. Mani, I am a
    Nephrologist. Our hospital is specialized in Kidney Surgery/transplant and other organ treatment, we also deal with buying and transplantation of
    kidneys with a living and healthy Donor. We are located in India. If you are interested in selling your kidney, please contact us via Email:
    (, WHATSAPP NUMBER :+919148549270.


  18. HI Dear Sir /Madam
    Hello ,Do you want to buy or sell your kidney for money Max hospital is urgently in need for O+v and A+ve kidney donors with any passports
    require. If any one is willing to donate or buy please contact us through
    Dr Matthew
    or whatsup us: +919148549270


  19. We are observing from the last few months that,lot of people are willing to donate organ but,they are cheated by fraud people.Now we are coming

    forward to support you in donating of your organ If you are really interested to sale your organ please contact us we will help you Only genuine
    donors is required Contact us whatsup: +919148549270 or by email


  20. max Surgical Hospital. Our hospital specialized in Kidney Surgery/ transplant and other organ treatment, we also deal with buying and

    transplantation of kidneys with a living and healthy donor. We are located in India. If you are interested in selling your kidney please don’t

    hesitate to contact us via
    whatsup us: +919148549270: Plot No. 14, Road Number 226, Sector 20, Near Metro Station 9 Dwarka, New Delhi, Delhi 110075 Please Note: Internet
    there are a lot of people with different motive.sincere and truthful we are not kid, this is about saving lives of others. Fraudulent is not
    accepted please.
    Best Regards.


  21. Hello,
    We need volunteer to Save live, we need someone who can give donor with reasonable amount of 2,00,00,000.00 INR,We have good experience doctors at Fortis Hospital Bangalore Karnataka with many years of experience , Together with some foreign doctors from United kingdom.

    Please contact us for more details through below information.
    Dr. Prem Kumar
    Whatsapp or call this no: +917022546148

  22. Do you wish to sell your kidney in exchange of money? email:
    Then contact today to get a reliable and good transaction for good money.
    Contact via below information Immediately
    India WhatsApp number: +918122208392
    Contact us now

  23. Do you want to sell your kidney for money; if you need urgent cash kindly contact us now via email, or 09920176485
    Name: Dr. Anil Vardani
    Address: Pusa Rd, Prasad Nagar, Rajinder Nagar, New Delhi, Delhi 110005, India

  24. Do you want to sell your kidney for money; if you need urgent cash kindly contact us now via email, or 09920176485
    Name: Dr. Anil Vardani
    Address: Pusa Rd, Prasad Nagar, Rajinder Nagar, New Delhi, Delhi 110005, India


Related Posts Plugin for WordPress, Blogger...