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IN THE HIGH COURT OF KARNATAKA
R.Nataraj, J.
Shivabai Baburao Kupati - Appellant
Versus
Mallikarjun Shivashankar Chikodi - Respondent
Regular First Appeal No. 1625 of 2005, Regular First Appeal No. 4130 of 2013
Decided On : 01-12-2022
null and void - Sale Deed - Code of Civil Procedure, 1908 - Order XXIII Rule 3
Fact of the Case:
Two suits were filed for declaration that the sale deeds executed by the deceased plaintiff in favor of the defendant were null and void. The Trial Court dismissed one suit and decreed the other, but the parties later settled the dispute amicably.
Finding of the Court:
The compromise was accepted as just and proper, and the impugned judgments and decrees were confirmed and set aside accordingly. The appeals were disposed of in terms of the compromise.
Issues: Validity of the sale deeds, settlement of the dispute, acceptance of the compromise.
Ratio Decidendi: The court accepted the compromise as it was just and proper and did not contravene any provision of law.
Final Decision: The impugned judgments and decrees were confirmed and set aside accordingly, and the appeals were disposed of in terms of the compromise.
JUDGMENT
1. These appeals arise out of two suits filed in O.S.No.161/1995 and O.S.No.70/1996 for declaration that the sale deed dtd. 23/4/1994 and 26/3/1993 executed by the deceased plaintiff in favour of the defendant as null and void and not binding on her and also for consequential relief of injunction. Amongst the two suits, the Trial Court dismissed O.S.No.70/1996 and decreed O.S.No.161/1995 and declared that the sale deed dtd. 23/4/1994 executed by the deceased plaintiff in favour of the defendant as null and void. Being aggrieved by the judgment and decree passed in O.S.No.70/1996, RFA No.1625/2005 is filed while being aggrieved by the judgment and decree in O.S.No.161/1995, RFA No.4135/2005 is filed.
2. When the appeal was listed for final hearing, at the instance of the court as well as at the instance of the learned counsel for the appellant and respondent, the appellants/legal representatives of the plaintiff have agreed to settle the dispute amicably by receiving a sum of Rs.25,00,000.00 towards full and final settlement of their claim in respect of the subject matter of aforesaid suits. The parties, thereafter, have filed a compromise petition under Order XXIII Rule 3 of the Code of Civil Procedure, 1908. The relevant terms of which are as under:
"4. The appellant and respondent have settled the dispute amicably with the intervention of elders and well wishers on the following terms:
a) The Shrishail S/o. Basavanneppa Kupati (i.e., Appellant in RFA No.1625/2005 and his children (attesting witnesses) admit the execution of sale deeds dtd. 26/3/1993 and 24/3/1994 by the Smt. Shivubai Baburao Kupati in favour of the Mallikarjun Shivashankar Chikodi in respect of suit schedule properties in OS No.70/1996 and OS No.161/1995, are true and correct and same are binding on them as the sale deeds are for valuable consideration and given effect to. The Shrishail S/o. Basavanneppa Kupati (i.e., Appellant in RFA No.1625/2005) and his children (attesting witnesses) further admits and states that, Mallikarjun Shivashankar Chikodi is the absolute owner of the suit schedule properties in OS No.70/1996 and OS No.161/1995 by virtue of the sale deeds referred above.
b) The Shrishail S/o. Basavanneppa Kupati (i.e., Appellant in RFA No.1625/2005 and his children (attesting witnesses), have agreed and states that they have no right, title or interest of whatsoever nature over the suit schedule properties in OS No.70/1996 and OS No.161/1995.
c) The Mallikarjun Shivashankar Chikodi i.e., Appellant in RFA No.4130/2005 has agreed to give Rs.25,00,000.00 towards litigation and miscellaneous expenses by way of Demand Draft bearing No.141854 dtd. 30/11/2022, drawn on State Bank of India, Jayanagar Branch, Hindalaga, Belagavi drawn in the name of Shrishail Basavannappa Kupati. The Shrishail Basavannappa Kupati i.e., Appellant in RFA No.1625/2005 admits the receipt of the same, for this the attesting witnesses i.e., children of Shrishail Basavannappa Kupati have no objection as they admit they have no subsisting right over the suit schedule properties in view of the terms of the compromise.
d) The Shrishail Basavannappa Kupati i.e., Appellant in RFA No.1625/2005 shall vacate and handover the vacant possession of western block shown as EFGH in the Hand Sketch Map in respect of suit schedule property in OS No.70/1996 within a period of 60 days from today, failing which the Mallikarjun Shivashankar Chikodi i.e., Appellant in RFA No.4130/2005 is at liberty to execute the terms of this compromise decree to seek vacant possession of the western block shown as EFGH in the Hand Sketch Map in respect Suit Schedule Property in OS No.70/1996. It is further submitted that, the Middle Block shown as FHIJ in the Hand Sketch Map in respect Suit Schedule Property in OS No.70/1996 is already in possession of Mallikarjun Shivashankar Chikodi.
e) The Shrishail Basavannappa Kupati or the occupants of the suit schedule property on behalf of Shrishail Basavannappa Kup
The court has the discretion to permit parties to settle their disputes in the interest of justice, and a compromise/settlement agreement can be allowed if found to be legal.
The court upheld the legality of a settlement agreement between parties in a civil dispute, allowing the appeal to be resolved without further litigation.
The main legal point established in the judgment is that a compromise deed, once recorded by the court, is lawful and binding, and a subsequent suit challenging the compromise decree is not maintaina....
Settlement agreements made voluntarily and without duress are enforceable, allowing for confirmation of ownership and resolving disputes amicably.
A binding compromise under Order XXIII Rule 3 of the Code of Civil Procedure prevents parties from raising further claims related to the settled issues.
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