Section 38 of Bharatiya Sakshya Adhiniyam, 2023: Fraud or collusion in obtaining judgment, or incompetency of Court, may be proved

Bharatiya Sakshya Adhiniyam, 2023 • Official Statutory Text & Practice Guide

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Act 2023
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Legal Commentary & Landmark Judgments: Section 38

Section 38 permits any party to a suit or proceeding to show that a judgment, order, or decree proved by the adverse party was delivered by a court without jurisdiction, or was obtained by fraud or collusion.

  • Collateral Attack on Fraud: Codifies the universal legal maxim: 'Fraud avoids all judicial acts, ecclesiastical or temporal.'
  • Inherent Lack of Jurisdiction: A decree passed by a court lacking subject-matter or territorial competence is a coram non judice nullity and can be challenged anywhere.
  • Collusion Defense: Enables third parties or defrauded litigants to pierce collusive consent decrees designed to defeat creditors or statutory ceilings.
Key Landmark Precedents:
  • S.P. Chengalvaraya Naidu v. Jagannath (1994) 1 SCC 1: The Supreme Court held that a judgment or decree obtained by playing fraud upon the court is a nullity and can be challenged in any court, at any time, in collateral proceedings under Section 44 IEA (Section 38 BSA).
  • A.V. Papayya Sastry v. Govt. of A.P. (2007) 4 SCC 221: Reaffirmed that fraud vitiates all solemn acts; no court will allow a party to retain an advantage obtained by fraudulent concealment of material facts.
Courtroom Practice & Strategic Litigation Guidance:

When confronted with an adverse consent decree or partition order obtained behind your client's back, invoke Section 38 directly in your defence or cross-suit; you are not required to file a separate declaratory suit to set aside the void decree.