Supreme Court Overturns High Court Ruling in Property Dispute: Forged Power of Attorney Declared Invalid

The case of Ali Hussain (D) Through LRs vs. Rabiya & Ors. revolves around the validity of a sale deed executed on the basis of an allegedly forged power of attorney. The Supreme Court, in its judgment on September 17, 2019, set aside the High Court’s decision and upheld the findings of the trial court and first appellate court, ruling that the burden of proving the validity of the power of attorney rested with the defendants.

Background of the Case

The dispute arose over a property inherited by the respondent, Smt. Rabiya, from her father, Sri Ahamad. She claimed ownership and possession of the suit property, which was allegedly sold without her consent using a forged power of attorney. According to the respondent, the first defendant, Ali Hussain, along with other defendants, conspired to fabricate a power of attorney dated April 25, 1995, and used it to execute a registered sale deed on May 10, 1995, for Rs. 1,50,000.

The respondent contended that:

• The power of attorney was forged and not executed by her.
• The property was sold at an undervalued price (less than Rs. 3,00,000).
• There was no clear record of who received the sale consideration.
• She remained in actual possession of the property, and the sale deed was never acted upon.

Based on these claims, she filed a suit seeking cancellation of the power of attorney and sale deed on grounds of fraud.

Legal Issues and Arguments

Arguments by the Appellant (Ali Hussain & Ors.):

• The power of attorney was valid and properly executed.
• The sale deed was lawfully registered, and the transaction was completed in accordance with legal requirements.
• The burden of proof lay on the plaintiff to demonstrate that the power of attorney was forged.

Arguments by the Respondent (Smt. Rabiya):

• She never executed the power of attorney.
• The defendants failed to produce concrete evidence that the power of attorney was genuine.
• As the owner, the burden of proof was on the defendants to establish the validity of the document used to transfer the property.

Supreme Court’s Observations

The Supreme Court ruled in favor of the respondent, holding that the burden of proving the genuineness of the power of attorney rested with the defendants. The Court observed:

“The burden to prove that the alleged power of attorney is not a result of fraud and misrepresentation lies on the defendant because they are the beneficiaries of the transaction.”

Additionally, the Court criticized the High Court’s approach, stating:

“The High Court erred in placing the burden of proof on the plaintiff to prove a negative fact. The primary responsibility to prove the authenticity of the document lay with the defendants.”

Key Rulings and Conclusion

The Supreme Court overturned the High Court’s ruling and reinstated the trial court’s judgment, which had dismissed the suit in favor of the respondent. The key rulings included:

• The power of attorney was not proven to be genuine, rendering the sale deed invalid.
• The High Court wrongly shifted the burden of proof onto the plaintiff.
• The property remains in the possession of the respondent, and the sale deed holds no legal standing.
• The case was remitted to the trial court for further proceedings as per law.

This judgment reinforces the principle that in cases of disputed property transactions, the party benefiting from the document must establish its validity beyond reasonable doubt.

Petitioner Name: Ali Hussain (D) Through LRs.
Respondent Name: Rabiya & Ors..
Judgment By: Justice N.V. Ramana, Justice Mohan M. Shantanagoudar, Justice Ajay Rastogi.
Place Of Incident: Roorkee, Uttarakhand.
Judgment Date: 17-09-2019.

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