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Supreme Court Orders Inquiry After Litigant Denies Engaging Advocates for Settlement; Recalls Settlement Order

17 May 2025 4:08 PM - By Vivek G.

Supreme Court Orders Inquiry After Litigant Denies Engaging Advocates for Settlement; Recalls Settlement Order

The Supreme Court of India recently took a significant step by recalling an earlier settlement order in a civil appeal after the litigant claimed he never authorized any advocate to settle the matter on his behalf. The Court has now directed its Registry to conduct an inquiry into how the advocates appeared for the litigant without authorization.

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This unusual situation unfolded before a bench comprising Justice PS Narasimha and Justice Joymalya Bagchi. The respondent in a civil appeal moved a miscellaneous application, asserting that the advocates who purportedly represented him in the case were never engaged by him. He further alleged that the settlement itself was fraudulent. The case was initially an appeal against a judgment of the Patna High Court.

"A detailed inquiry is necessary in this matter," the bench emphasized while ordering the investigation.

Despite the respondent’s claims, the Court’s records indicated the appearance of the following advocates on behalf of the respondent on December 13, 2024:

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  • Mr. Muneshwar Shaw, Sr. Adv.
  • Mr. Rattan Lal, Adv.
  • Mr. J.M. Khanna, AOR
  • Ms. Shefali Sethi Khanna, Adv.

However, during the hearing, it was revealed that J.M. Khanna, AOR, had left practice and was never involved in the matter, while Shefali Sethi Khanna stated that she had no connection with the case. The respondent also appeared via video conferencing to confirm his claims.

Recognizing the seriousness of the situation, the Supreme Court directed the Secretary-General to appoint a senior officer for a detailed inquiry. This investigation aims to uncover how and at whose instance the appearance of these advocates was recorded, leading to the consent for the so-called settlement agreement dated October 24, 2024.

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"The preliminary report should be submitted within four weeks. Based on the report, further action, including lodging an FIR, will be taken," the Court stated.

Following this decision, the Court officially recalled the settlement order dated December 13, 2024, and restored the civil appeal.

This is not the first time the Supreme Court has addressed issues related to fraudulent representation. Last year, the Court ordered a CBI investigation into the filing of a Special Leave Petition based on a forged vakalatnama, leading to an FIR against eight lawyers.