Telangana High Court refused to set aside a 2013 Lok Adalat award where the petitioner retained sale consideration, holding that one cannot affirm a decree and later allege fraud.
Telangana HC: Cannot Retain Sale Amount and Plead Fraud
The Telangana High Court dismissed a petition seeking to set aside a 2013 Lok Adalat award concerning a prime land parcel in Raidurg, holding that a party who has accepted and retained substantial sale consideration cannot later allege fraud to escape the decree. The bench, comprising Justices Moushumi Bhattacharya and Renuka Yara, emphasized that equity does not permit such contradictory conduct.
The petitioner had received a significant portion of the sale proceeds under the award but later challenged its validity on grounds of fraud and lack of jurisdiction. The court ruled that acceptance of benefits under an award implied affirmation, barring subsequent challenges unless exceptional circumstances were demonstrated.
"One cannot approbate and reprobate – accepting benefit under an award while assailing its legitimacy – is impermissible in law,"the Court stated. This principle aligns with established jurisprudence under Section 12(2) of the Legal Services Authorities Act, which grants finality to Lok Adalat awards where accepted by courts under Section 21. Practitioners must heed that preconditions for challenging such awards are strictly construed.
Citations
- Smt. M Nagalakshmi and Another vs The Chairman, Mandal Legal Services Committee, Cyberabad and Five Others
