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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
B.M. SHYAM PRASAD, K.V. ARAVIND, JJ.
Sri. Ashok Kumar V., S/o. Late Venkataiah T.K. and Anr. – Appellants
Versus
The State of Karnataka, Represented By Its Principal Secretary, Department Of Commerce And Industries and Ors. – Respondents
Writ Appeal No.1930 of 2024 (LA-KIADB)
Decided On : 22-05-2025
| Table of Content |
|---|
| 1. quashing of the award and settlement terms. (Para 1 , 2) |
| 2. acknowledgment of settlement by parties. (Para 3) |
| 3. court's acceptance of settlement ending litigation. (Para 4) |
JUDGMENT :
(B.M. SHYAM PRASAD, J.)
The petition in Writ Petition No.10313/2024 by the fourth to sixth respondents is disposed of by the impugned order dated 12.11.2024 quashing the Award dated 09.11.2023 in KIADB/LAQ/4037/2023-2024, and the operative portion of this impugned order reads as under:
"(i) Accordingly, the writ petition is allowed.
(ii) In view of setting aside the consent award dated 09.11.2023 (Annexure-A), the private respondent Nos.4 to 7 are hereby directed to re-deposit the amount before the respondent No.3-KIADB. In turn, the respondent-KIADB shall deposit the same before the Civil Court for adjudication with regard to the apportionment of compensation is concerned.
(iii) The private respondents are directed to re-deposit the amount within a period of 2 months from the receipt of this order."
2. The learned counsels for the parties state that the appellants and the private respondents have agreed that in view of the inter se settlement, the appellants and the seventh and eighth respondents, who have received compensation from M/s KIADB, will pay certain amounts to others, and in fact, the compromise petition under Order XXIII Rule 3 of CPC is placed on record detailing the amounts agreed upon and the instruments made over to others, apart from setting-forth the details of the settlement. These details read as under :
"6. That, the Respondents No.4 to 6 including Sri Gangaraj, Smt. Parvathamma and Smt. A Bhagya have received the amount, which are as follows:
| S. No. | Ranking of the Parties | Amount |
| 1. | Sri Ashok Kumar V. | a) A sum of Rs.4,25,000/- to Respondent No.4 Smt. Jayamma vide Cheque bearing No. 202046 dated 21/05/2025, drawn on Karnataka Bank Ltd., Basaveshwaranagar. b) A sum of Rs.4,25,000/- to Respondent No.4 Smt. K.Kanthamma, vide Cheque bearing No.202047 dated 21/05/2025, drawn on Karnataka Bank Ltd. Basaveshwaranagar. c) A sum of Rs.4,25,000/- to Respondent No.4 Smt. Sharada, vide Cheque bearing No.202048 dated 21/05/2025, drawn on Karnataka Bank Ltd., Basaveshwaranagar. d) A sum of Rs.4,25,000/- to Sri.Gangaraj, vide Cheque bearing No.202050 dated 21/05/2025, drawn on Karnataka Bank Ltd. Basaveshwaranagar. e) A sum of Rs.4,25,000/- to Smt.Bhagya, vide Cheque bearing No.202049 dated 21/05/2025, drawn on Karnataka Bank Ltd. Basaveshwaranagar. f) A sum of Rs.4,25,000/- to Smt. Parvatamma, vide Cheque bearing No.202051 dated 21/05/2025, drawn on Karnataka Bank Ltd. Basaveshwaranagar. |
| 2. | Sri Mohan Kumar V. | a) A sum of Rs.4,25,000/- to Respondent No.4 Smt. Jayamma vide Cheque bearing No.385295 dated 20/07/2025, drawn on State Bank of India, Basaveshwaranagar (09049). b) A sum of Rs.4,25,000/- to Respondent No.5 Smt. K. Kanthamma, vide Cheque No.385296 dated 20/07/2025, drawn on State Bank of India, Basaveshwaranagar (09049). c) A sum of Rs.4,25,000/- to Respondent No.6 Smt.Sharada, vide Cheque bearing No. 385297 dated 20/07/2025, drawn on State Bank of India, Basaveshwaranagar (09049). d) A sum of Rs.4,25,000/- to Sri.Gangaraj, vide cheque bearing No.385299 dated 20/07/2025, drawn on State Bank of India, Basaveshwaranagar (09049). e) A sum of Rs.4,25,000/- to Smt. Bhagya, vide cheque bearing No. 385298 dated 20/07/2025, drawn on State Bank of India, Basaveshwaranagar (09049). f) A sum of Rs.4,25,000/- to Smt. Parvatamma, vide Demand Draft bearing No. 385300 dated 20/07/2025, drawn on State Bank of India, Basaveshwaranagar (09049). |
| 3. | Sri Sateesh Kumar H. | a) A sum of Rs.4,25,000/- to Respondent No.4 Smt. Jayamma vide Cheque bearing No. 745762 dated 21/05/2025, drawn on State Bank of India, Basaveshwaranagar (09049). b) A sum of Rs.4,25,000/- to Respondent No.5 Smt. K.Kanthamma, vide Cheque bearing No. 745761 dated 21/05/2025, drawn on State Bank of India, Basaveshwaranagar (09049). c) A sum of Rs.4,25,000/- to Respondent No.6 Smt.Sharada, vide Cheque |
The court upheld the validity of a voluntary settlement between parties in a compensation dispute, emphasizing the importance of amicable resolutions in litigation.
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.
A compromise between parties, if accepted by the court, is binding and results in the cessation of claims while outlining property rights and financial settlements.
Settlement agreements made voluntarily and without duress are enforceable, allowing for confirmation of ownership and resolving disputes amicably.
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....
Parties may settle disputes amicably through a lawful compromise, which is accepted by the court.
The court upheld the voluntary compromise between parties regarding partition claims and confirmed the modification of the decree, emphasizing the absence of coercion and mutual satisfaction with the....
Compromise decrees are binding unless legally challenged, and mere allegations of fraud do not invalidate established agreements without sufficient proof or a court ruling to the contrary.
The interpretation of 'signed by parties' under Order 3 Rule 1 of CPC and the authority of counsel or recognized agents to enter into a compromise on behalf of the parties.
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