MUHAMMAD ZAFFAR KHAN vs Syed SHUMAILA ZAIDI Ss — 2025 SCMR 1961 SUPREME-COURT

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MUHAMMAD ZAFFAR KHAN VS Syed SHUMAILA ZAIDI Ss. 2(g), 13 & 14---Contract procured under duress and undue influence---Execution of agreement while vendor being in police custody---Legality---Coercion, duress and undue influence, presumption of---Free consent of the vendor being an essential element of a valid contract ---Requirement---Burden of proof---Onus on beneficiary of the transaction to prove that transaction was made without any duress and with free consent of the owner---Scope---Contract procured under duress would be void---The present case was about a house that originally belonged to the respondents' family and was inherited by them through an inheritance mutation in 2001---Years later, some financial dealings between the petitioners and respondents went sour after a failed investment project---During this dispute, the respondents' predecessor was arrested and kept in police custody---While in custody, he was made to sign an agreement that transferred the family/inherited house to the petitioners, and a fresh mutation was recorded in their (petitioners') names---The respondents argued that the agreement was forced and had no legal value since it was signed under duress---The legal question before the Supreme Court was as to "whether the agreement for transfer of property, executed by the respondents' predecessor while in police custody, could be treated as a valid transaction reflecting free consent, or whether it stood vitiated by duress and coercion, rendering the subsequent mutation in favor of the petitioners void"?---Held: Since the respondents' predecessor (vendor) was arrested and was in custody, the complainant of the FIR was obviously in a position to dominate the will of accused, and therefore, the burden was upon the petitioner (vendee) to prove that he had not exerted any influence to strike a bargain/deal---The transaction so made was made on the basis of the agreement which was void---The suit of the respondents was filed within time and the petitioner was under heavy burden to prove that transaction made was without any duress and was made with free consent---No evidence was on record which could support the case of the petitioner and that was the reason the High Court dealt with the question extensively and had held rightly that the transaction made consequent to the agreement in police custody was void---No ground was present warranting interference of the Supreme Court in findings given by the High Court---Civil appeal was dismissed, in circumstances.

MUHAMMAD ZAFFAR KHAN vs Syed SHUMAILA ZAIDI Ss — 2025 SCMR 1961 SUPREME-COURT

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