Order obtained by practising fraud - Every Court/Tribunal has power to recall such order -

Citation

AIR 2000 SUPREME COURT 1165

SUPREME COURT

(From : Allahabad)*

K. T. THOMAS , J. and D. P. MOHAPATRA , J.

Civil Appeal Nos. 2087 with 2088 of 2000 (arising out S.L.P. (C) Nos. 8479, with 9666 of 1999), 

D/- 14 - 3 - 2000

United India Insurance Co. Ltd Appellant v. Rajendra Singh and others Respondents.

 United India Insurance Co. Ltd Appellant v. Sanjay Singh and others Respondents.

(A)Civil P.C. (5 of 1908), S.151 - Power to recall its order - Order obtained by practising fraud -

Every Court/Tribunal has power to recall such order - Award passed by Motor Accident Claims

Tribunal - Claim made, subsequently discovered to be fraudulent - Remedy to move Tribunal

for recall of award ought not to be foreclosed.

No Court or tribunal can be regarded as powerless to recall its own order if it is convinced that the

order was wangled through fraud or misrepresentation of such a dimension as would affect the very

basis of the claim.

 (Para 17) 

Where the insurance company after the passing of the award by Motor Accidents Claims Tribunal,

discovers that the award has been passed on a fake claim, it would be fully justified in approaching

the Claims Tribunal for recall of the award. The Insurance Company when it comes to know of any

dubious concoction having been made with the sinister object of extracting a claim for compensation

after the award has already been passed, it would not be possible for the company to file a statutory

appeal against the award. Not only because of bar of limitation to file the appeal but the consideration

of the appeal even if the delay could be condoned, would be limited to the issues formulated from

the pleadings made till then. The remedy to move for recalling the order on the basis of the newly

discovered facts amounting to fraud of high degree cannot be foreclosed in such a situation.

 (Paras 16 , 17) 

(B)Constitution of India, Art.226 - Writ Jurisdiction - Impugned order assailed as product of

fraud - Jurisdiction ought to be exercised.

For a High Court in India to say that it has no power even to consider the contention that the award

secured are the by-products of stark fraud played on a Tribunal, the plenary power conferred on the

High Court by the Constitution may become a mirage and people's faith in the efficacy of the High

Courts would corrode.

 (Para 4) 

Cases Referred Chronological Paras

Indian Bank v. Satyam Fibres (India) Pvt. Ltd., 1996 AIR

SCW 3228 : AIR 1996 SC 2592 : (1996) 5 SCC 550

15

Cases Referred Chronological Paras

S.P. Chengal Varaya Naidu v. Jagannath, 1994 AIR SCW

243 : AIR 1994 SC 853 : (1994) 1 SCC 1

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