Section 23 of the Act of 2007 embodies the
doctrine of constructive fraud, a concept
distinct from fraud under the Indian Contract
Act . It proceeds ... subsequently breached, the law
treats the transfer as vitiated by constructive
fraud, irrespective of whether fraudulent intent
existed at the inception.
19.8. The statutory presumption
other words, proof of deliberate fraud and not merely of constructive fraud or of mis-statement has to be shown.
41. In Mithoolal Nayak
deception may not
amount to fraud, fraud is anathema to all
equitable principles and any affair tainted with
fraud cannot be perpetuated or saved ... Kinch Vs. Walcott it has been held that
"....mere constructive fraud is not, at all events
after long delay, sufficient but such a judgment
Smt Mariyamma vs Executive Engineer on 2 December, 2025
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NC: 2025:KHC:50298
WP
Shri Basavaraj vs The State Of Karnataka on 2 December, 2025
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NC: 2025:KHC
Fraud and Mistake, Seventh Edition by Denis Lane Mc. Donnell has dealt with 'Legal Fraud' which is as follows:
"Legal Fraud.--Fraud ... moral blame or actual fraud. This is especially noticeable in many cases of rescission of contract, fraud upon powers and constructive fraud. The expression
deception may not amount to fraud, fraud is anathema
to all equitable principles and any affair tainted with
fraud cannot be perpetuated or saved ... Walcott (1929) AC 482, it has been
held that "....mere constructive fraud is not, at all
events after long delay, sufficient but such
deception may not amount to fraud,
fraud is anathema to all equitable principles and any
affair tainted with fraud cannot be perpetuated or
saved ... Walcott (1929 AC 482, it has been
held that: "... mere constructive fraud is not, at all
events after long delay, sufficient but such
vitiated by fraud. Deeds, obligations,
contracts, awards, judgments, or decrees may be the
instruments to which parties may resort to cover fraud,
and through which ... fraud upon it may be set aside. In order to
sustain an action to impeach a judgment, actual fraud
must be shown; mere constructive fraud
minutely.
18
Before I answer the point about fraud let us quickly glance
at fraud.
FRAUD; Fraud and mistake as grounds for relief are
alike ... fraud upon it may be set aside. To sustain an action to
impeach a judgment, actual fraud must be shown; mere
constructive fraud
