Judgment or Decree obtained by fraud is to be treated as a nullity: SC

Ram Kumar Vs State of Uttar Pradesh and Ors. (Supreme Court of India)

Conclusion:  In present facts of the case, while allowing the appeal it was observed by the Hon’ble Supreme Court that non-disclosure of the relevant and material documents with a view to obtain an undue advantage would amount to fraud and the judgment or decree obtained by fraud is to be treated as a nullity.

Facts: This appeal challenges the judgment and order of the High Court of Judicature at Allahabad dated 21^st February 2019 thereby allowing the writ petition filed by respondent No. 9 herein, setting aside the order dated 18^th November 2017 passed by the Deputy Collector, Rasoolabad cancelling the fair price shop licence of Respondent No. 9.

Respondent No.9 (the original writ petitioner) was granted a licence for running a fair price shop. Various complaints were received by the Sub-Divisional Officer with regard to malpractices committed by the said fair price shop dealer. As such, a site inspection of the fair price shop was done and various irregularities and malpractices were found in the running of the said fair price shop. As such, a show cause notice came to be issued to respondent No.9 by the SDO on 7^th July 2017. Initially, on the date fixed, respondent No.9 did not file her explanation. Subsequently, she submitted her explanation on 16^th August 2017. Thereafter, an inquiry was conducted by the SDO. At the conclusion of the inquiry, the SDO found the charges to be proved and as such, vide order dated 18^th  November 2017, cancelled the Fair Price Shop licence of respondent No.9. Being aggrieved, an appeal to the Appellate Authority was filed but was dismissed on 20.07.2018.

In the meantime, licence to run the said fair price shop was granted in favour of the present appellant-Ram Kumar vide order dated 15^th May 2018. This was done on the basis of the decision taken by the Tehsil Level Selection Committee dated 19^th April 2018. This fact was specifically noted in the order of the Appellate Authority dated 20^th July 2018. Being aggrieved by the aforesaid order passed by the Appellate Authority, Respondent No.9 preferred a writ petition before the High Court, which was allowed as cancellation of license was done without following the full-fledged inquiry process and by relying on the Full Bench decision of the Allahabad High Court in the Judgment of Puran Singh vs. State of U.P. and others, 2010 SCC OnLine All 2707.

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