IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
V.SRISHANANDA, J.
Smt. Shantawwa W/o. Balappa Bhajanatri – Appellant
Versus
Shri Hanamant Bhimappa Bhajantri – Respondent
Miscellaneous Second Appeal No.100010 of 2021
Decided on : 02-02-2024
Lok Adalat - Impersonation - Legal Services Authorities Act, 1987 - Section 20, Article 226, Article 227 - [O.S. No.98/2016] - [Section 20 of the Act, 1987, Article 226, Article 227] - The court discussed the bar under the Act, 1987 in challenging the award passed in the Lok Adalath and emphasized that the only remedy available to challenge the compromise decree passed in the Lok Adalath is to file a writ petition under Article 226 and/or Article 227 of the Constitution of India. The court also highlighted the difficulty in establishing the plea of fraud in writ jurisdiction and concluded that filing a separate suit under Section 9 of CPC when there is a clear bar under the Act, 1987 is not maintainable.
Fact of the Case:
The respondent filed a suit challenging a compromise decree passed in O.S. No.358/2015, alleging impersonation and fraud. The first Appellate Court set aside the judgment and decree passed in O.S.No.98/2016 and decreed the suit. The defendants in O.S.No.98/2016 filed the present second appeal.
Finding of the Court:
The court found that the only remedy available to challenge the compromise decree passed in the Lok Adalath is to file a writ petition under Article 226 and/or Article 227 of the Constitution of India. It concluded that filing a separate suit under Section 9 of CPC when there is a clear bar under the Act, 1987 is not maintainable.
Issues: The main issue was whether a separate suit challenging the compromise decree passed in the Lok Adalath was maintainable.
Ratio Decidendi: The court held that the only remedy available to challenge the compromise decree passed in the Lok Adalath is to file a writ petition under Article 226 and/or Article 227 of the Constitution of India.
Final Decision: The court allowed the Miscellaneous Second Appeal, set aside the judgment passed in O.S.No.98/2016, and decreed the suit. It also granted the respondent the liberty to challenge the compromise decree in an appropriate writ petition.
JUDGMENT :
Heard Shri. Laxman T. Mantagani, learned counsel for appellants and Shri. O. B. Joshi, learned counsel for the respondent.
2. Present second appeal is filed challenging the order passed in R.A. No.14/2019 dated 30.11.2020 by learned Senior Civil Judge, Saundatti, whereby the following order came to be passed:
By acting under Order XLI Rule 33 CPC, the prayer made by the appellant in the present appeal is moulded and granted as below:
(a) The judgment and decree passed in O.S.No.98/2016 dated 30.03.2019 is hereby set-aside.
(b) The final order dated 08.12.2015 decree and compromised final decree dated 20.01.2016 drawn in O.S. No.358/2015 i9s hereby set aside.
(c) The suit in O.S.No.98/2016 is remanded back before trial court for fresh adjudication in accordance with law.
(d) The suit in O.S.No.358/2015 is restored to its original file for determine for efficacious remedy, in accordance with law.
(e) The respective plaintiffs of O.S.No.98/2016 and O.S.No.358/2015 are hereby directed to implead all the alienees in their respective suit.
(f) The trial Court is hereby directed to consolidate the suits and determine the right, title and interest of the parties in accordance with law.
(g) The trial court is further directed to extend opportunity to the parties and determine the suits in accordance with law as expediently as possible.
Accordingly, the appeal preferred by the appellant under Section 96 read with Order XLI Rule 1 CPC, is hereby disposed off.
The parties are hereby directed o bear their own cost and as such no order as to costs.
Draw decree accordingly.”
3. Facts in brief which are necessary for disposal of the present second appeal are as under:
3.1. A suit was filed in O.S. No.358/2015 which came to be disposed off by filing a compromise petition and final decree came to be passed before Lok Adalath.
3.2. Being aggrieved by the same, the respondent herein filed a suit in O.S. No.98/2016 contending that the defendant by name Hanamant Bhimappa Bhajantri, in O.S. No.358/2015 was impersonated and a compromise decree came to be passed.
3.3. In the suit O.S.No.98/2016 the following is the prayer:
i) Declaring that, the Compromise Final Decree in O.S. No.358/2015 is a nullity and not binding on the plaintiff as it is obtained by playing fraud, in the interest of justice and equity.
ii) Declaring that, the plaintiff is the absolute owner of the suit property Block No.184 of Itnal village to the extent of 15 Acres 16 Guntas, in the interest of justice and equity.
iii) Pass such other order as this Hon’ble Court deems fit on the facts and circumstances of the case, including the award of costs, in the interest of justice and equity.”
3.4. That suit in O.S.No.98/2016 on contest came to be dismissed. Being aggrieved by the same, plaintiff Hanamant Bhimappa Bhajantri filed first appeal before the learned Senior Civil Judge, Saundatti, (hereinafter referred to as the ‘first Appellate Court’, for brevity) in R.A.No.14/2019.
3.5. The first Appellate Court by a contexted judgment dated 30.11.2020 set aside the judgment and decree passed in O.S.No.98/2016 and decreed the suit as prayed for.
4. Being aggrieved by the said judgment of the first Appellate Court, defendants in O.S.No.98/2016 who were plaintiffs in O.S.No.358/2015 have preferred the present second appeal.
5. Shri. Laxman T. Mantagani, learned counsel for appellants vehemently contended that the suit before the Civil Court challenging the compromise decree a separate suit before the Trial Court in O.S.No.98/2016 challenging the compromise decree passed in a Lok Adalath was not at all maintainable and the same has been rightly appreciated by the Trial Judge and dismissed the suit in O.S.No.98/2016.
6. He further contended that learned Judge in the first Appellate Court ignoring the bar contend in the Legal Services Authorities Act, 1987 (hereinafter referred to as ‘the Act, 1987’, f
Challenge to Compromise Decree – Only remedy is to file a writ petition and not a separate suit.
A writ petition challenging a compromise decree entered before Lok Adalat by non-impleaded necessary parties is maintainable due to allegations of fraud and procedural irregularity.
Point of Law : Challenge to the award of Lok Adalat can be done only by filing a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court and that too on very....
Challenges to compromise decrees based on fraud must be made in the court that issued the decree, and such allegations require substantial proof.
A Lok Adalat award can be challenged by filing a writ petition under Article 226/227 of the Constitution of India on limited grounds, and a civil suit is not maintainable to challenge a Lok Adalat aw....
Awards passed by Lok Adalat can be challenged in writ jurisdiction where fraud is alleged, despite limitations on appeals.
The finality and binding nature of awards passed by Lok Adalat, and the prohibition on filing suits to set aside a decree based on a compromise.
Lok Adalat compromise decrees, though final under Section 21, can be set aside in writ jurisdiction if vitiated by fraud like non-service of summons and misrepresentation to illiterate disabled party....
(1) Compromise of suit – To recall a compromise that has been recorded would call for strong reasons. Terms of a compromise decree cannot be avoided, unless allegation of fraud has been proved.(2) Wh....
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