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Fraud Vitiates all Proceedings and cannot be Protected under Procedural Technicalities --- Lahore High Court Nullifies Consent Decree

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Fraud Vitiates all Proceedings and cannot be Protected under Procedural Technicalities --- Lahore High Court Nullifies Consent Decree

Islamabad 28-03-2025 The Lahore High Court, Rawalpindi Bench, has set aside a consent decree in a property dispute, ruling in favor of the Petitioner who challenged the validity of the decree under Section 12(2) of the Code of Civil Procedure (CPC). Mr. Justice Mirza Viqas Rauf declared the decree illegal and unlawful, emphasizing that it was obtained through fraud and misrepresentation.

The case originated from a suit for specific performance filed by Respondent against another Respondent, seeking enforcement of an agreement to sell dated March 14, 2013. During the proceedings, the defendant conceded the claim, leading to a consent decree on July 28, 2017. However, the Petitioner filed an application under Section 12(2) of CPC, alleging that the decree was obtained fraudulently and without proper authorization.

The Petitioner’s application was dismissed by the Civil Judge, Rawalpindi, on September 22, 2018, and his subsequent revision before the Additional District Judge was also rejected on October 21, 2019. Aggrieved by these decisions, he approached the Lahore High Court under Article 199 of the Constitution.

Mr. Justice Mirza Viqas Rauf examined the agreement and the underlying power of attorney (PoA). The Court found that:

The attorney executing the agreement on behalf of respondent No. 4 (a society) lacked proper authorization.
One of the original executants of the power of attorney had passed away in 2014, terminating any agency rights under Section 201 of the Contract Act, 1872.
The decree was obtained without valid legal authority, making it a clear case of misrepresentation.

The Court ruled that the lower Courts erred in dismissing the Petitioner’s claims and failed to recognize the fraudulent nature of the transaction. Citing previous Supreme Court and Lahore High Court precedents, Mr. Justice Mirza Viqas Rauf emphasized that fraud vitiates all proceedings and cannot be protected under procedural technicalities.