Case: NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY Vs. RAVINDRA KUMAR SINGHVI (DEAD) THR. LRS

2. The plaintiff-respondent was allotted a residential plot No. D-49, Sector30, Noida (Hereinafter referred to as Sector 30 Plot) as a member of the Defence Services Cooperative Housing Society on 06.10.1981. The possession of the plot was handed over to him on 24.08.1991.3. However, prior to the allotment of the said plot, plot No. 84, Sector15A, Noida (Hereinafter referred to as Sector 15A Plot) was allotted to Smt. Amila Singhvi, wife of the plaintiff on 10.03.1981. As per the pleaded case of the plaintiff, there was an uncertainty on account of litigation between the Society of which he was a member with the appellant authority. Therefore, the plot at Sector 15A was applied for, which was allotted to the plaintiffs wife on 10.3.1981. It was pleaded that since the plaintiff was interested in Sector 30 plot as member of the Society, therefore, the wife of the plaintiff transferred the Sector 15A plot in favor of one Mrs. Kanta Modi after obtaining permission from the appellant. Later, a transfer deed was executed on 25.10.1990.4. The plaintiff was served with a notice on 12.06.1996 that the Sector 30 plot had been obtained by him by submitting a false affidavit as Sector 15A plot was already allotted to his wife. The grievance of the plaintiff was that since the Sector 15A plot has been sold after obtaining permission from the appellant, therefore, the Sector 30 plot was the only plot in possession of the plaintiff. With the said claim, the suit for declaration was filed restraining the defendant from re-allocating the Sector 30 plot and from dispossessing the plaintiff from the same. After considering the reply, the plot was cancelled on 18.10.1996.5. In the written statement filed by the appellant, it was asserted that there was no litigation in respect of the Sector 15A plot and that the plaintiff was aware of the allotment of the Sector 15A plot when Sector 30 plot was allotted. However, the plaintiff intentionally concealed such factum of allotment and filed a false affidavit for the Sector 30 plot. It was also pleaded that the plaintiff was aware of the terms and conditions of allotment that the plaintiff and his wife cannot retain both the plots separately. The Sector 15A plot was sold only to conceal the fact of obtaining double allotment. It was further contended that Sector 15A plot was allotted on 10.03.1981 and the wife of the plaintiff sworn an affidavit on 04.03.1983 that the allotee, her spouse and dependent children have not been allotted residential plot/house/flat in Noida, Delhi or New Delhi. The plaintiff was allotted Sector 30 plot on 06.10.1981. The plaintiff had also filed an affidavit along with his letter dated 1.12.1988 that he, his spouse and dependent children did not own in full or part any residential plot/house/flat in Noida, Delhi and New Delhi. The affidavit filed by the plaintiff reads thus:I, Ravindra Kumar Singhvi S/o Late Shri K.M. Singhvi R/o of E227, East of Kailash, New Delhi-110065, aged about 39 years do hereby solemnly affirm and state on oath as under:-1. That I have attained the age of majority on 26.01.1968.2. That I am a bonafide and registered member of the Defence Services Cooperative Housing Society (Regd.) in my own name and right on May 1, 1976.3. That I have deposited Rs.125/- as membership fee of the above cooperative housing society on 18.07.1975.4. That I, my spouse and dependent children do not own in full or in part on lease hold or free hold basis any residential plot or house in NOIDA and have not been allotted any plot, or house on hire purchase basis in NOIDA complex.6. The learned Trial Court decreed the suit inter alia on the ground that the lease executed in favour of the plaintiff cannot be determined merely by passing the subject order in terms of Section 111 (g) of the Transfer of Property Act, 1887 as no notice for determination of lease under the said section has been issued. Therefore, all rights in the lease would survive. The first Appellate Court and the High Court affirmed the findings recorded by the Trial Court. The High Court further held that plaintiff and his wife had no ulterior motive to perpetrate fraud on the appellants. It was noted that there was no willful or dishonest intention on the part of the plaintiff and his wife.

Court's reasoning:
15. It is an admitted fact that the wife of the plaintiff was allotted Sector 15A plot on 10.3.1981. The wife sworn an affidavit on 4.3.1983 that neither she nor her spouse owned any other plot in Noida. It was on 6.10.1981 that the plaintiff was informed about allotment of residential plot measuring 450 sq. yards in Sector 30. The allotment was said to be subject to terms and conditions as enclosed. The relevant extract from such terms and conditions have been reproduced above. Such terms clearly show that a person himself owning, or in case of his spouse or dependent children owning a plot within the Municipal Corporation of Delhi or New Delhi or Noida complex, will not be eligible for allotment of a plot in Noida. The affidavit of the wife of the plaintiff was false as the plot measuring 450 sq. yards stood allotted to the plaintiff on 6.10.1981. Therefore, on the date the wife of the plaintiff had sworn the affidavit, the Sector 30 plot was already allotted to the plaintiff. The argument that plot might have been allotted but the possession was not with the wife of the plaintiff is incorrect. The affidavit was to the effect that she has not been allotted any plot either in her name or in the name of her husband. The affidavit was not that the plot has been allotted but possession has not been delivered.16. On the other hand, the plaintiff had sworn an affidavit, sent to the appellant with his letter dated 1.12.1988 that he, his spouse and dependent children do not own in full or in part on leasehold or freehold basis any residential plot. Even this affidavit is in respect of allotment of a plot not in respect of delivery of possession. It may be stated that when in 1988, the plaintiff had sworn the affidavit, the lease deed dated 31.1.1983 already stood executed in respect of Sector 15A plot. Since the lease was executed, the wife of the plaintif applied for permission to transfer which was granted and transfer deed was executed on 25.10.1990. The permission was granted by the appellant without having knowledge of the fact that the husband of the allottee has already been allotted a separate plot. Once an affidavit has been filed which is on the face of it false to the knowledge of the executants, no benefit can be claimed on the ground that delivery of possession was given.17. In M. Veerabhadra Rao Vs. Tek Chand 1984 (Supp) SCC 571 , this Court was considering an affidavit attested by an Advocate in terms of Section 3(2) of the Oaths Act, 1969. The conduct of appellant to attest an affidavit without oath and the attestation on the representation of the respondent that it bears his signatures, came up for consideration. In these circumstances, this Court held as under:17. The expression affidavit has been commonly understood to mean a sworn statement in writing made especially under oath or on affirmation before an authorised Magistrate or officer. Affidavit has been defined in sub-clause (3) of Section 3 of the General Clauses Act, 1897 to include affirmation and declaration in the case of person by law allowed to affirm or declare instead of swearing. The essential ingredients of an affidavit are that the statements or declarations are made by the deponent relevant to the subject matter and in order to add sanctity to it, he swears or affirms the truth of the statements made in the presence of a person who in law is authorised either to administer oath or to accept the affirmation……18. Therefore, affidavits filed were not mere sheet of paper but a solemn statement made before a person authorized to administer oath or to accept affirmation. The plaintiff had breached such solemn statement made on oath.19. The terms and conditions of allotment conveyed to the plaintiff on 1.12.1988 have a specific clause that if allotment is obtained by any misrepresentation or misstatement or fraud, the lease may be cancelled and the possession of the plot and the building thereon may be taken by the Authority. Therefore, cancellation of allotment of plot obtained after filing false affidavit is a legitimate ground of cancellation of lease. Fraud vitiates all actions as laid down by this Court in S.P. Chengalvaraya Naidu (Dead) by LRs. v. Jagannath (Dead) by LRs. & Ors. (1994) 1 SCC 1  wherein it was held as under:5. The High Court, in our view, fell into patent error. The short question before the High Court was whether in the facts and circumstances of this case, Jagannath obtained the preliminary decree by playing fraud on the court. The High Court, however, went haywire and made observations which are wholly perverse. We do not agree with the High Court that there is no legal duty cast upon the plaintiff to come to court with a true case and prove it by true evidence. The principle of finality of litigation cannot be pressed to the extent of such an absurdity that it becomes an engine of fraud in the hands of dishonest litigants. The courts of law are meant for imparting justice between the parties. One who comes to the court, must come with clean hands. We are constrained to say that more often than not, process of the court is being abused. Property-grabbers, taxevaders, bank-loan-dodgers and other unscrupulous persons from all walks of life find the court-process a convenient lever to retain the illegal gains indefinitely. We have no hesitation to say that a person, whos case is based on falsehood, has no right to approach the court. He can be summarily thrown out at any stage of the litigation.20. The argument that the lease was required to be determined by the Chief Executive Officer is not tenable. The determination of lease by the Chief Executive Officer would arise if in case there was any violation of the terms of lease. If the condition precedent for grant of lease itself was fraudulent, the cancellation of lease was not required to be preceeded by permission of the Chief Executive Officer. Still further, the Chief Executive Officer has granted permission on 13.9.1998, though the cancellation order was passed on 18.10.1996. Thus, it is a case of irregularity at best which stands removed with the permission of the Chief Executive Officer. The argument that if the statute prescribes a power to do a certain thing in a certain way, such thing must be done in that way and other modes of performance are necessarily forbidden is not applicable in the present case. Firstly, for the reason that admittedly, false affidavits were filed by the plaintiff as well as by his wife. The filing of a false affidavit disentitles the plaintiff for any equitable relief. Secondly, any irregularity in the process of cancellation stands cured with Chief Executive Officer granting permission on 13.9.1998.21. The judgment in ITC Limited as relied upon by the respondent is on altogether different facts. In that case, the allotment made in favour of ITC Limited was subject matter of challenge in Public Interest Litigation in writ petitions filed before the Allahabad High Court. The issue was in respect of cancellation of lease on account of violation of the terms, not based upon fraud in obtaining the lease.22. The judgments of this Court in Teri Oat Estates and Hari Om Enterprises are also on different facts wherein the Doctrine of Proportionality was applied.23. The fact is that the second plot allotted to the plaintiff had been allotted against the express terms of allotment. Therefore, there is neither equity nor any law in favor of the plaintiff. A person who misleads the Authority in obtaining allotment of a plot is not entitled to any relief.