1) You can file an application under Section 151 of the Code of Civil Procedure (CPC). Under this provision, courts hold the inherent power to prevent the "abuse of the process of the court". Because fraud vitiates all judicial proceedings, a court is empowered to dismiss a suit entirely if the foundation of the case is established as a calculated fraud upon the court itself. 

2) While Order 7 Rule 11 primarily deals with statutory bars (e.g., limitation, undervaluation), courts have routinely used inherent powers in conjunction with this rule to dismiss sham or illusory litigations where no real cause of action exists once the fabricated documents are discarded.

There is a strong  basis to file a petition to dismiss the suit based on these specific findings. When a court explicitly finds that a party has committed a "fraud upon the Court" by fabricating or altering evidence, it fundamentally taints the entire litigation. You can file an application invoking the court's inherent powers under Section 151 of the Code of Civil Procedure (CPC), or alternatively under Order VII Rule 11 (Rejection of Plaint), arguing that the suit is an abuse of the process of the court.

The Supreme Court of India has consistently held that "Fraud avoids all judicial acts, ecclesiastical or temporal" (S.P. Chengalvaraya Naidu v. Jagannath). A litigant who approaches the court with unclean hands and tampers with documents is not entitled to a hearing.   Since the Sub Judge has already recorded a factual finding in an interlocutory order that Ex. A1 was intentionally altered to perpetrate a fraud, you can argue that allowing the suit to continue is a gross abuse of the judicial process.

You can move a petition under order Vi Rule 16 CPC to strike out the plaint on the grounds that it is scandalous, frivolous, vexatious, or an abuse of the process of the court.

if the plaintiff's fraud is so glaringly exposed by the court's own comparison of Ext. A1 and Ext. B1, you can argue that no triable issue remains on the fabricated document under order XII Rule 6. 

Since the court has already observed that an effort was made to screen the document to suit the plaintiff's case, you can consider filing an application under Section 340 of the Code of Criminal Procedure (CrPC) / Section 379 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) read with Section 195.

This initiates a criminal inquiry by the court into the offenses of giving false evidence and fabricating false evidence (perjury/forgery) committed in relation to court proceedings.

Filing this application puts immense legal pressure on the Plaintiff, as it carries criminal liability, and often accelerates a resolution or dismissal of the civil facade.

When a party maliciously drags you to court using forged documents to extort a settlement or attach your independent property, they commit a civil wrong (tort). To win a separate suit for damages, you must prove four elements, all of which align strongly with your current facts:

1. Prosecution by the Defendant: The Plaintiff instituted civil proceedings against you.

2. Termination in your favor: The civil suit must be completely resolved in your favor (either dismissed via your Section 151 petition or after a trial). You cannot file this suit while the original suit is still pending.

3. Absence of reasonable and probable cause: The Sub Judge’s explicit finding that the case is a "fraud upon the Court" and lacks a prima facie case serves as absolute proof that the Plaintiff had no legitimate legal grounds to sue you.

4. Malice and Damage: The intentional alteration of Ext. A1 to target your independent property (Plaint B Schedule) directly proves malice.

You can file suit for damages and also file criminal complaint against the plaintiff 

You can file application under 195- 340 crpc or corresponding provision under BNSS for perjury 

you can file for compensation 

You can carry on construction on the land 

any third party rights created woukd be subject to final orders passed by HC 

Dear Sir/Madam,

Yes, you may file an application before the trial court for rejection/dismissal of the suit relying on the Sub Judge’s finding regarding fraud, but dismissal is not automatic and the court will examine the pleadings and evidence.

You may also initiate criminal proceedings if there is clear fabrication/forgery of documents, preferably after taking certified copies of the court order and documents.

If the suit is ultimately dismissed, you may consider a separate claim for damages/malicious prosecution, but recovery of legal costs is not guaranteed.

Regarding construction or lease, since the High Court has made any alienation subject to the appeal result, avoid creating long-term third-party rights without legal advice or permission from the court.

Advocate Saurabh Agrawal

The High Court’s order is that "If there is any alienation of the plaint B schedule property the same will be subject to the result of the appeal", is a standard lis pendens formulation under Section 52 of the Transfer of Property Act. The High Court did not grant a total injunction against the property, meaning your ownership rights are still intact, but the court has bound any actions you take to the final result of the appeal.

If you construct a building and the appeal unexpectedly goes in the Plaintiff’s favor, you cannot claim compensation for the money you spent constructing it. The court can order the structure demolished at your expense. If the Plaintiff somehow wins the appeal, your tenant's 10-year lease becomes legally invalid or vulnerable. The tenant can then sue you for heavy damages for hiding or misrepresenting the litigation risk, or for failing to guarantee uninterrupted possession.

As the Sub Judge already found that the Plaintiff committed an active fraud upon the court by altering Ext. A1, you hold a very strong hand. Do not compromise that advantage by creating fresh legal complications.

The interim order passed by the High Court is significant. From what you have stated, the Court has not granted an injunction restraining you from using or possessing the B Schedule property. Instead, it has merely observed that any alienation of the B Schedule property shall be subject to the result of the appeal.

This distinction is important.

If the High Court has not restrained construction or use of the property, then constructing a building on your own land is generally not prohibited merely because of the above order. Likewise, using the property yourself or deriving income from it does not ordinarily amount to "alienation."

However, the following points require caution:

1. Constructing a building: You may proceed only if there is no specific injunction prohibiting construction and you have all necessary statutory approvals. If ultimately the appeal or the suit is decided against you, any construction made during the pendency of the litigation would ordinarily be subject to the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882. In other words, you undertake the construction at your own risk, and you cannot later claim equities merely because you invested money during the pendency of the litigation.

2. Leasing the land for 10 years: A lease for ten years creates substantial rights in favour of the lessee and is generally regarded as a transfer of an interest in immovable property. The expression "alienation" is often interpreted broadly enough to include long-term leases. Therefore, granting a 10-year lease while the High Court's order is in force may expose you to allegations that you have acted in breach of the spirit, if not the letter, of the interim order.

3. Hotel business: If you intend to permit a third party to run a hotel on the property under a long-term registered lease or similar arrangement, it is advisable not to do so without first obtaining clarification or permission from the High Court. This would avoid unnecessary contempt allegations or future complications.

In my opinion, constructing a building for your own use or for future rental purposes is legally distinguishable from creating a long-term lease in favour of a third party. The latter carries a greater legal risk because it creates an interest in the property that may be treated as an alienation.

Therefore, the safest course would be:

• continue to retain possession of the property;

• if construction is proposed, ensure that there is no injunction specifically restraining construction and obtain all statutory approvals;

• avoid executing any long-term lease, development agreement, sale agreement, mortgage, or other document creating third-party rights without first obtaining clarification or leave from the High Court.

If the appeal is still pending, your advocate may also consider filing an application before the High Court seeking clarification that construction for your own account shall not amount to violation of the interim order. Such a clarification, if granted, would protect you against future objections and enable you to proceed with greater certainty.

Dear Client, You are in a strong position given the subordinate judges categorical finding of fraud upon the court regarding your query on dismissal of the suit why interlocutory findings do not automatically end a case you can file an application under Order VII Rule 11 of the CPC that deals with rejection of plaint or move to the court to strike out the pleadings under Order VI Rule 16 on the grounds that the suit is in abuse of process More effectively because the Supreme Court has consistently held that the fraud unravels everything you can urge the Court to exercise its inherent powers under Section 151 of the CPC to dismiss the suit summarily as a claim built entirely on fabricated evidence lacks a valid cause of action.

Further you have strong grounds for legal action though both parts require careful timing you can file a criminal complaint for the fabrication of evidence under Section 229 of the Bharatiya Nyaya Sahita however since the case is sub judice courts are often reluctant to initiate parallel criminal proceedings It is usually more effective to wait until the civil suit is concluded in your favour. Once the suit is dismissed you can initiate a civil suit for malicious prosecution or damages to recover your legal costs loss of reputation and the mental trauma caused by the fraudulent litigation You must prove that the plaintiff acted maliciously without reasonable cause and that the proceedings ended in your favour.

Regarding your construction plans proceed with extreme caution the High Court’s order stating that alienation of the B schedule property is subject to result of the appeal creates a legal obligation over the property If you construct a building or lease it out you risk being accused of violating a court order if the final outcome is not in your favour which could lead to complications in liquidating or adjusting the property while it does not strictly prohibit construction it makes any development lis pendens meaning your tenant’s rights or your own investment could be jeopardized if the court eventually attaches the property. I hope this answer helps, if you have any further query kindly do not hesitate to contact us. Thankyou

If there is no stay you can do the needful 

1. Can I file a criminal complaint?
Yes, you can. Civil and criminal proceedings can run simultaneously. The Sub Judge's clear finding of "fraud upon the Court" is strong evidence to support a criminal complaint under the Indian Penal Code for forgery and fabrication of evidence. While the civil court's observation is not binding on a criminal court, it carries significant persuasive value. Consult a criminal lawyer to file a complaint with the jurisdictional magistrate or police, as courts actively discourage and punish parties who abuse the judicial process with fraudulent documents.

2. Can I file a suit for compensation and damages after the civil suit is dismissed?
Yes, you are entitled to file a separate suit for malicious prosecution and damages. To succeed, you must prove: (i) the plaintiff instituted proceedings against you, (ii) without reasonable and probable cause, (iii) with malice, and (iv) the proceedings terminated in your favour. Additionally, you may claim recovery of legal costs and litigation expenses incurred in defending the fraudulent suit. However, quantify your actual losses carefully, as damages for mental anguish and reputational harm are also claimable.

3. Is there any legal problem if I construct or lease the B Schedule property during the High Court appeal?
Yes, significant risk exists. The High Court ordered that "any alienation of the plaint B schedule property will be subject to the result of the appeal." Constructing a building or granting a 10-year lease for a hotel business constitutes a substantial change in the nature of the property and may be treated as an "alienation" or transfer of rights. If the plaintiff ultimately succeeds, you may be forced to demolish or undo the lease, incurring heavy losses. To avoid contempt or adverse orders, file an application before the High Court seeking specific clarification or permission before proceeding.