1. Challenge to a compromise decree on grounds of mental unsoundness of a party and improper guardianship — Application to set aside the decree. (Para 4 )
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2000 Supreme(SC) 493
2000(6) Supreme 551
SUPREME COURT OF INDIA
S.B. Majmudar & Y.K. Sabharwal, JJ.
S.M. Seeni Ibrahim Sahib & Anr. -Appellants
versus
S.M. Sultan Ibrahim -Respondent
Civil Appeal Nos. 1936-1937 of 2000
(Arising out of SLP (C) Nos. 11174-11175 of 1999)
Decided on 3-3-2000
When a trial court sets aside a compromise decree without adhering to the procedure under Order 23 Rule 3 of the CPC, the proceedings must be remanded for a fresh decision on merits according to Order 23 Rule 3 and Order 32 Rule 15 of the CPC.
Headnote:Code of Civil Procedure, 1908-Order 23, Rule 3 r/w Order 32, Rule 15-Compromise decree-Setting aside of-Wife alleging husband was mentally unsound and compromise entered into by her husband was contrary to law seeking set aside of decree-Trial Court setting aside decree without following procedure laid down in proviso to Rule 3-High Court justified in holdiing procedure adopted by trial Court not correct-But further direction required-Proceedings remanded to trial Court to re-decide application afresh on merits. (Para 5)
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2. Whether a compromise decree entered into by a spouse of a mentally unsound person is legal and if the application to set it aside requires merit-based reconsideration. (Para 4 )
3. The trial court failed to follow the procedure under Order 23 Rule 3 CPC, and the High Court should have remanded the matter for a fresh decision. (Para 4 , 5 )
4. When a trial court incorrectly sets aside a decree without following the prescribed procedure under Order 23 Rule 3 and Order 32 Rule 15 CPC, the matter must be remanded. (Para 5 )
5. Appeals partly allowed — Proceedings remanded to the trial court to re-decide the legality of the consent decree on merits. (Para 5 , 6 )
6. What is the required procedure when a trial court incorrectly sets aside a compromise decree?
The High Court should direct the proceedings to be remanded to the trial court for a fresh decision on the merits, adhering to the provisions of Order 23 Rule 3 and Order 32 Rule 15 of the Code of Civil Procedure. (Para 5 )
7. Can a compromise decree be challenged on the grounds of mental unsoundness?
Yes, an application can be moved to challenge a compromise decree if it is alleged that a party was mentally unsound and the compromise was entered into contrary to law. (Para 4 )
8. What is the relevance of Order 32 Rule 15 CPC in challenges to compromise decrees involving mentally unsound persons?
Order 32 Rule 15 CPC provides the procedural framework for the court to handle proceedings where a party is mentally unsound, ensuring that the legality of any compromise is decided according to the law. (Para 5 )
ORDER
Delay in filing the counter affidavit is condoned.
2. Leave granted.
3. By consent of learned senior Counsel for the parties these appeals are heard finally and are being disposed of by this order.
4. The short question is whether the application being I.A. No. 1010 of 1998 in O.S. No. 662 of 1998 moved on 11th November 1998 before the trial Court challenging the compromise decree on the grounds mentioned therein, requires to be reconsidered on merits after hearing the parties concerned. It is contended that Appellant No. 2, who is the wife of Appellant No. 1 who is allegedly mentally unsound, had entered into a compromise with the Respondent which was contrary to law. She, therefore, claims to be the guardian of Appellant No. 1 and moved the trial Court for setting aside the said decree. The learned trial Judge, without following the appropriate procedure as laid down by proviso to Order 23 Rule 3, Code of Civil Procedure (C.P.C.) set aside the decree. In the revision filed by the Respondent-decree holder the High Court rightly held by the impugned judgment and even on consent by learned Senior Counsel for the Appellant that the procedure adopted by the trial Court was not correct. The Revision Application was, therefore, allowed.
5. However, in our view, a further order was required to be passed by the High Court directing the proceedings to be remanded to the trial Court for fresh decision on merits according to the provisions of Order 23 Rule 3 as also Order 32 Rule 15 C.P.C. As that was not done, only on this short ground these appeals are partly allowed. The final/consequential direction which was required to be issued by the High Court is hereby issued now to the effect that the proceedings will stand remanded to the trial Court with a direction to re-decide the aforesaid application moved by AppellantNo. 2-wife purporting to be the guardian of Appellant No. 1, who is alleged to be mentally unsound and to decide the question whether the impugned Consent Decree was legal or not.
6. We make it clear that we make no observations on the controversy between the parties. The Civil Appeals are partly allowed accordingly. No costs.
(C.R.) Appeals partly allowed.
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