Law: Civil Procedure Code (V of 1908)

Section: 12

(a) Civil Procedure Code (V of 1908)---S. 12(2)---Setting aside of and decree---Plea of fraud and misrepresentation---Essential requirement---Courts possess inherent powers to set aside their own , decree or final order which had been obtained fraudulently by way of misrepresentation and concealment/ suppression of facts or acting collusively---Provisions of S.12(2), C.P.C. provide an aggrieved person with a right to file application for recalling or setting aside a decree, final order or which had been obtained by fraud or misrepresentation---Essential requirement for such an application is that full particulars of. fraud and misrepresentation must be given in the application---Provisions of S.12(2), C.P.C. are not attracted when the alleged fraud or misrepresentation was not in connection with the proceedings but prior to their initiation---Party alleging, commission of fraud or misrepresentation in obtaining the decree, or final order has to state facts and circumstances which could warrant a presumption or the possibility of commission of fraud or representation. Abdur Rehman Khan v. Muhammad Altaf and 3 others 1997 CLC 1260 ref. (b) Fraud--- ---- Main ingredient of fraud is intention to deceive or to induce the person by misrepresentation to enter into a contract on a false belief---Fraud also includes untrue statement by one who did not believe it true, and active concealment of facts. (c) Civil Procedure Code (V of 1908)--- ----S. 12(2)---Setting aside of and decree---Plea of fraud--- Validity---Where the facts on the basis of which the validity of decree, s or final order has been questioned on the ground of fraud or misrepresentation, application under S.12(2), C.P.C. on the basis of such assertion is not sustainable if the facts were within the knowledge of the aggrieved party during the course of proceedings. (d) Civil Procedure Code (V of 1908)--- ----S. 12(2)---Consent decree, setting aside of---Plea of fraud and misrepresentation---Suit for recovery of Bank loan was decreed in terms o€ compromise arrived at between the parties---Borrower filed application under S.12(2), C.P.C. on the ground that the financial institution had committed a fraud…

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