LI Network
Published on: February 3, 2024 at 11:00 IST
The Supreme Court, in a recent ruling, emphasized that when two clauses in a deed are contradictory, the earlier clause takes precedence over the later one.
The Court set aside the decisions of the High Court and Trial Court, stating that if the earlier and later clauses cannot be reconciled, the earlier clause(s) will prevail over the later clause(s) when interpreting a deed or contract.
This ruling came during the interpretation of clauses in a Power of Attorney (PoA) executed by landowners in favor of individuals from whom the appellant purchased land.
The PoA authorized the holders to execute deeds, including sale deeds, and to present them for registration on behalf of the landowners. However, allegations arose regarding criminal acts committed by the PoA holders, including the appellant, leading to the filing of an FIR.
The appellant contended that clause 15 of the PoA authorized them to present sale deeds for registration, and thus they had not committed any criminal acts.
The Court, after examining the clauses, concluded that clauses 3 and 11 authorized the execution and registration of deeds by the PoA holders, while clause 15 added to these powers without nullifying them.
Referring to legal precedents, the Court stated that if a later clause destroys the obligation created by an earlier one, the later clause is rejected as repugnant, and the earlier clause prevails. In this case, since clauses 3 and 11 could not be reconciled with clause 15, the former prevailed.
The Court granted relief to the appellant, quashing the FIR and related proceedings, as they had no involvement in the alleged criminal acts. The ruling highlights the duty of the courts to protect litigants from vexatious prosecution, ensuring justice and fairness in legal proceedings.