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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.NAGAPRASANNA
Dinesh H.R., S/o Rajappa – Appellant
Versus
H.K. Satish, S/o Kittappa Gowda – Respondent
ORDER :
M.NAGAPRASANNA, J.
Petitioner is before this Court calling in question an order of the concerned Court dated 9.7.2025 rejecting Review Petition in R.P.No.1/2025 seeking recall of a compromise that was entered into in O.S.No.44/2021.
2. Heard Sri.Nagendra Naik R, learned counsel appearing for the petitioner, Sri.K.N.Phanindra, learned Senior Counsel appearing for the respondents and have perused the material on record.
3. Facts in brief germane are as follows:
(a) A Memorandum of Understanding is said to have been entered into between Excellent Solar and the respondent No.1 in implementing a particular project drawing up certain terms and conditions. The dispute arose between the two which led the respondent No.1 to institute a money recovery suit in Commercial O.S.No.44/2021 before the concerned Court seeking recovery of Rs.2,36,33,593/-. In the said suit, a compromise is entered into between the parties on 12.03.2022. On 12.03.2022, the compromise is noted and the matter is referred to Lok Adalat, finally, the issue gets culminated before the Lok Adalat recording, the compromise and closing the proceedings. This happens in the year 2022. Petitioner does not honor the compromise
Compromise agreements are binding and cannot be challenged on claims of fraud or coercion after significant delay.
(1) Breach of compromise – Only remedy available to aggrieved party is to approach court that recorded compromise under proviso to Order 23, Rule 3 of CPC.(2) When there is a statutory remedy availab....
Courts hold inherent power to recall judgments if obtained through fraud or concealed material facts; non-parties cannot challenge compromise decrees under CPC provisions.
A stranger to a compromise decree cannot challenge it under Order 23 Rule 3 CPC; inherent powers exist to recall orders obtained by fraud.
(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....
Recall petition after enjoying compromise benefits constitutes abuse of process and is not maintainable.
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