Difference between Fraud and Collusion are given below:
In cases of fraud and also in cases of collusion, there must be contest. In cases of collusion, the contest is a mere sham, but in case of fraud it is real and earnest.
The common feature of both lies in the fact that it is the Court which is imposed upon, in collusive proceedings by the secret understanding between the parties, and in fraudulent proceedings by the act of deception practiced by the plaintiff (in the former case) upon the Court.
The distinction between fraud and conclusion lies in this: that the party alleging fraud in the obtaining of a decree against him is alleging matter which he could not have alleged in answer to the suit in which the decree was passed, whereas a party charging collusion is not alleging new matter.
He is endeavoring to set up a defense which might have been used in answer to the suit in which the decree was passed and that he cannot be allowed to do consistently with the principle of res judicator.