“Fraud vitiates every solemn Act”

“Fraud vitiates any solemn act , remarked apex court and upheld the decision of trial court which declared registered gift void on reason of being by fraud “

One Yadunandan mistri  issueless gifted his 3 acres land in the name of his nephew’s wife in expectation that he will be taken care of by them in his old age . Bit immediately after registration he he cancelled the deed and filed suit requesting court to give order to declare this gift deed viod on grounds of fraud and undue influence .

The trial court decided that defendant took benefit of donor’s blind trust and close relationship and played undue influence over him  . Also found that no evidence of acceptance adduced by defendant and no transfer of possession to defendant took place .

The High court allowed the appeal by defendant and observed that property once gifted with complete elements it can’t be revoked . Also finds that express acceptance is not necessary for completing the transaction of gift .

The Supreme bench of Justice Uday Lalit and S. Ravindra Bhat concluded that gift deed was brought about by fraud and undue influence .

“Fraud vitiates every solemn act , finding by trial court is inviolable “, Court allowed the appeal restoring trial court judgement .

Given reference of case :- Behari Kunj v. State of U.P (2008)

  • Fraud involves 2 elements , deceit and injury to the person deceived .
  • Injury is non economic harm of body , mind and reputation .
  • Fraud and justice never sails together .
  • To wilfully or recklessly believe in other’s misrepresentation which he knows to be false .
  • A pre intended action to deprive other from his lawful rights .

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