HARYANA FINANCIAL CORPORATION vs GURCHARAN SINGH

The Supreme Court held that the decree obtained by the second respondent in Civil Suit No.767 of 1995 was collusive and aimed at defeating the personal undertaking given by the first respondent to the Haryana Financial Corporation under Section 138 of the Transfer of Property Act. The Court emphasized that a party cannot seek relief from a fraudulent decree and must come to court with clean hands. The appeal by the Corporation was allowed, overturning the High Court's dismissal of their challenge to the collusive decree.