‘A’ intentionally and falsely leads ‘B’ to believe that certain land belongs to ‘A’ and thereby induces ‘B’ to buy and pay for it. The land afterwards becomes the property of ‘A’, and ‘A’ seeks to set aside the sale on the ground that, at the time of the sale, he had no title. Can he do so? Examine by applying the relevant provision of the Evidence Act.

Facts of the Case

‘A’ intentionally and falsely represents to ‘B’ that a particular piece of land belongs to him. Relying on this representation, ‘B’ is induced to purchase the land and pays the agreed consideration to ‘A’.

At the time of the sale, ‘A’ in fact had no legal title to the land. Subsequently, the land legally becomes the property of ‘A’. After acquiring title, ‘A’ seeks to set aside the sale transaction, contending that since he had no title at the time of the sale, the transaction is invalid.

The issue is whether ‘A’, having earlier misrepresented the facts and induced ‘B’ to act upon such belief, can now legally deny the validity of the sale.

Issues in the Case

1. Whether ‘A’ is barred from denying his earlier representation regarding ownership of the land?
2. Whether the doctrine of estoppel under the Indian Evidence Act, 1872 applies to the facts of the case?
3. Whether ‘A’ can set aside the sale by pleading absence of title at the time of sale despite his own fraudulent conduct?

Legal Principles Covered to Support Case Proceedings and Judgments

A. Doctrine of Estoppel – Section 115, Indian Evidence Act, 1872

Section 115 embodies the doctrine of estoppel and states:

When one person has, by his declaration, act, or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative shall be allowed, in any suit or proceeding between himself and such person or his representative, to deny the truth of that thing.

The essential elements of estoppel are:

1. A representation by words, act, or omission,
2. Intention that the representation be acted upon,
3. Reliance by the other party, and
4. Change of position by acting upon such representation.

All these elements are clearly satisfied in the present case.

B. Estoppel Against Denial of Title

By falsely representing ownership and inducing ‘B’ to purchase the land, ‘A’ is estopped from denying his title, even if he actually had no title at the time of sale.

The subsequent acquisition of title by ‘A’ does not extinguish the estoppel, but rather perfects the title in favour of ‘B’.

C. Principle of Equity and Prevention of Fraud

The doctrine of estoppel is rooted in equity and is intended to:

• Prevent fraud, and
• Stop a person from taking advantage of his own wrong.

Allowing ‘A’ to set aside the sale would enable him to benefit from his own fraud, which is impermissible in law.

D. Operation of Estoppel under Evidence Law

Estoppel under Section 115 does not create a new title but prevents a party from asserting the contrary of what he previously represented. Thus, in legal proceedings, ‘A’ is barred from pleading lack of title.

4. Possible Judgment

The Court is likely to hold that:

1. ‘A’ intentionally misrepresented that the land belonged to him and induced ‘B’ to act upon such belief.
2. ‘B’ altered his position by paying the consideration and purchasing the land relying on ‘A’s representation.
3. Therefore, Section 115 of the Indian Evidence Act, 1872 squarely applies, and ‘A’ is estopped from denying his title at the time of sale.
4. ‘A’ cannot set aside the sale on the ground that he had no title when the transaction was executed.

Final Decision

‘A’ cannot avoid or rescind the sale. By virtue of the doctrine of estoppel under Section 115 of the Indian Evidence Act, 1872, ‘A’ is legally barred from denying the truth of his earlier representation, and the sale in favour of ‘B’ remains valid and enforceable.

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