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2020 Supreme(SC) 112

ASHOK BHUSHAN, M.R.SHAH
MOHAMMADE YUSUF – Appellant
Versus
RAJKUMAR – Respondent


Advocates Appeared:
For the Appellant(s) :Amit Wadhwa, Amit Kumar Srivastava, Sanjay Kumar Hadala, Sunil Kumar Singh, Aviral Khare, Abhishek Sharma, Vinod Kumar Tewari, Advocates
For the Respondent(s):Taruna Ardhendumauli Prasad, Advocate

Judgement Key Points

What is the requirement for registration of a compromise decree under Section 17 of the Registration Act, 1908? What are the rights of parties to introduce an unregistered compromise decree as evidence in a subsequent suit?

Key Points: - A compromise decree comprising immovable property other than that which is the subject-matter of the suit or proceeding requires registration, whereas any other decree or order of a court is exempted from registration by virtue of Section 17(2)(vi). (!) (!) - The exclusionary clause in Section 17(2)(vi) is not applicable if the compromise decree concerns property that is the subject matter of the suit or proceeding. (!) (!) - In the present case, the compromise decree dated 04.10.1985 was not required to be registered because it related to the property which was the subject matter of the original suit. (!) (!) - The High Court's view that the decree required registration because the plaintiff had no pre-existing title was based on the overruled judgment of Gurdwara Sahib and is no longer valid. (!) (!) - The Supreme Court held that the compromise decree did not create a new right, title, or interest in immovable property for the first time but declared pre-existing rights, thus falling under the general exemption for court decrees. (!) (!) - The appeal was allowed, and the order of the Civil Judge refusing to accept the unregistered compromise decree as evidence was set aside. (!)

What is the requirement for registration of a compromise decree under Section 17 of the Registration Act, 1908?

What are the rights of parties to introduce an unregistered compromise decree as evidence in a subsequent suit?


JUDGMENT

ASHOK BHUSHAN, J.

This appeal has been filed against the judgment of High Court of Madhya Pradesh at Indore Bench dated 13.02.2017 dismissing the writ petition of the appellant challenging the order of the trial court dated 07.01.2015 whereby the trial court has held that the compromise decree sought to be filed by the appellant is not admissible in evidence for want of registration.

2. The brief facts of the case are: -

    2.1 A Suit No. 250-A of 1984 was filed by one Habib Kha, the father of the appellant for declaration and injunction. The Suit was filed for 7 biswa area of survey No.203 situated at Village Kitvani, Kasba Mandsaur, which was attached in east with the land of plaintiff being survey No.223. The plaintiff was in possession of suit land, which was recorded in the names of defendant. A compromise decree was passed in the suit dated 04.10.1985 declaring the right of plaintiff on 7 biswa area and it was declared that remaining land belong to defendant.

    2.2 The appellants, who were son of Habib Kha claimed to be in possession, continued to be in possession of the aforesaid area. A Suit No.90-A of 2006 was filed on 16.09.1998 by respondent Nos. 1 and 2 against the app


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