IMMANI APPA RAO AND OTHERS vs GOLLAPALLI RAMALINGAMURTHI AND ORS.

The Supreme Court ruled that in cases of fraudulent conveyance, such as under Section 84 of the Indian Trusts Act, the plea of fraud can be raised in defense even if the ostensible owner seeks a decree based on the fraudulent conveyance. The Court held that both parties being guilty of fraud precludes the application of estoppel, emphasizing that public policy considerations should guide the outcome. The High Court's decree was set aside, and the plea of fraud was allowed to be raised, prioritizing the integrity of public interest over fraudulent claims.