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Supreme Court of India 2023-08-17 allowed

RAMATHAL & ORS vs K. RAJAMANI (DEAD)

Bench: 2 — Vikram Nath, Ahsanuddin Amanullah

In Brief

This case involves 110 cents of land in Tamil Nadu that belonged to Natchimuthu, who granted 50 cents by gift deed to his wife Ramathal. The plaintiffs, who were illiterate, requested Rajamani to develop the land into plots for sale. They executed a Power of Attorney on 5 September 1986, but Rajamani allegedly fraudulently added clauses permitting him to sell, mortgage, and transfer the property without their knowledge or consent. On the same day the Power of Attorney was registered, Rajamani sold the entire 110 cents to his father and brother for heavily undervalued consideration. The trial court dismissed the suit, but the first appellate court found the Power of Attorney void under the doctrine of non est factum. The High Court reversed this, holding that non est factum was not properly pleaded or issued. The Supreme Court allowed the appeal, holding that the plea was sufficiently pleaded and covered by broader issues where evidence was led, and that fraudulent misrepresentation as to the character of the document rendered it void.

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Property Law Fraud and Misrepresentation Non Est Factum Civil Procedure Power of Attorney

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