Supreme Court: Buyer Not Liable If Property Purchased on Forged Will Without Knowledge

In S. Anand v. State of Tamil Nadu, the Supreme Court held that a purchaser cannot be held criminally liable for buying property based on a Will that is later found to be forged. The Court clarified key principles governing liability in property transactions involving disputed Wills.

The Bench of Justice Vikram Nath and Justice Sandeep Mehta set aside criminal proceedings against the buyer. It found that the purchaser had no knowledge of the alleged forgery and was not involved in the execution of the disputed Will.

The case arose from a long-standing family dispute in Tamil Nadu. The complainant claimed that a Will, allegedly executed by his father before his death in 1988, was fabricated. Based on this document, the complainant’s brother sold the property to multiple buyers in 1998.

A criminal case was later registered alleging forgery, cheating, and conspiracy. The appellant, one of the buyers, challenged the proceedings, arguing that he was a bona fide purchaser who had no role in the alleged fraud.

The Court accepted this argument and emphasised that merely purchasing property later linked to a forged document does not automatically attract criminal liability. It noted that the buyer had acquired the property after due verification and for valid consideration.

Importantly, the Court observed that such buyers are often the actual victims, as their title becomes uncertain due to defects in the vendor’s ownership. It stated that in the absence of evidence showing knowledge or involvement in the forgery, criminal prosecution cannot be sustained.

Quoting its earlier ruling in Mohammed Ibrahim v. State of Bihar, the Court reiterated that a third party cannot allege cheating against a purchaser when there is no direct contractual relationship between them.

“…the appellant, being a purchaser of the subject property for valuable consideration, cannot, in the facts of the present case, be considered to be the person who offered fraudulent inducement…” the Court observed.

The Court also highlighted that there was no material to suggest that the buyer had conspired in preparing the forged Will or had knowledge of its falsity at the time of the transaction.

Accordingly, the Supreme Court allowed the appeal and quashed all criminal proceedings against the purchaser, reinforcing safeguards for bona fide buyers in property transactions.