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2025 Supreme(Kar) 1449

IN THE HIGH COURT OF KARNATAKA AT KALABURAGI BENCH
SHIVASHANKAR AMARANNAVAR, J.
Raju S/o Late Ranoji - Appellant
Versus
Laxmibai W/o Rukmanrao - Respondent
Regular Second Appeal No. 200393 of 2022
Decided On : 19-08-2025

Advocates Appeared:
For the Appellant : Venkatesh C. Mallabadi
For the Respondents: Ravi B. Patil, Mulchand Garje, Yashas S. Dikshit, Ajaykumar A.K.

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.

Headnote:(A) Code of Civil Procedure - Order XXIII Rule 3 - Compromise petition filed and accepted by both parties - Settlement of dispute concerning property - The appellants and respondents reached an amicable resolution concerning a partition dispute, detailing the terms and conditions of their agreement, including financial compensation and relinquishment of further claims. (Paras 1-10)

(B) Finality of Settlement - Once compromise is agreed upon and acknowledged in court, parties are barred from subsequent claims or legal actions regarding the matters settled. (Paras 6-8)

Facts of the case:
The appellants, challenging a previous judgment granting a share to the respondents, underwent a settlement process aided by elders, leading to a mutually accepted compromise regarding property designations and compensation. (Paras 1-10)

Findings of Court:
The court and parties agreed to the terms of settlement, concluding all related disputes and preventing further claims once compensation was accepted. (Paras 6-10)

Issues: Whether the terms of the compromise are lawful and whether the parties can withdraw any further claims regarding the suit property. (Paras 8-10)

Ratio Decidendi: The court affirmed that a duly executed compromise is binding upon the parties, preventing further claims related to the settled issues, thereby promoting finality in legal resolutions. (Paras 5-10)

Result: Appeal disposed of in terms of the compromise petition.

Table of Content
1. procedural background - compromise petition. (Para 1 , 2)
2. terms of settlement between parties. (Para 3 , 4 , 5)
3. agreement to withdraw claims and cooperation. (Para 6 , 7)

JUDGMENT :

SHIVASHANKAR AMARANNAVAR, J.

1. The compromise petition under Order XXIII RULE 3 of Code of Civil Procedure is filed and it is signed by appellants No.1 and 2 and respondents No.1 to 7 and 10. Respondent No.10 - Arjun is the Special Power of Attorney Holder of respondents No.8, 11 to 16 and 18 to 20. The compromise petition is enclosed with the affidavits of appellants No.1, 2 and respondents No.1, 2, 10 and the copy of the Special Power of Attorney dated 12.08.2025 executed in favour of Arjun (respondent No.10).

2. Appellants No.1 and 2 and respondents No.1 to 7 and respondent No.10 are present before the Court. Respondent No.10-Arjun is the Special Power of Attorney of respondents No.8, 11 to 16 and 18 to 20.

3. The terms of settlement as enumerated in compromise petition are as under:-

“The Appellants, respondent herein most respectfully submits as under:

1. The present appeal is filed aggrieved by the judgment and decree dated 01-02-2022 passed in R.A.No.109/2018 on the file of the Additional District and Sessions Judge at Bidar, setting aside the judgment and decree dated 16.12.2017 passed in O.S.No.06/2015 on the file of the Senior Civil Judge and CJM, Bidar.

2. It is submitted that, due to intervention of the elders and well wishers, of the appellants and respondent herein, have settled the dispute amicably, out of the Court on the following terms and conditions.

3. It is agreed by both the parties that, the plaintiff No.1(a) to 1(f) / respondents No.2 to 7 herein that, the suit property was already divided and partitioned long ago between them and acted upon and thereafter the brothers and their family members namely Late Ram s/o Narayan Gawali, Late Dasharth S/o Narayanrao Gawali and Late Ranoji S/o Naryanrao Gawali, to whom share was divided and devolved have with their free will and consent have in partnership with M/s. Vasavi Homes (BDK) represented by its partners Dnyaneshwar s/o Baburao Halgonde to develop and form residential layout in the suit property and a joint development agreement in form of SPA was registered on 05.03.2021 bearing document No.9988/202-2021. The parties agreed that the suit lands are now converted and layout are formed and open plots are already sold and the respective purchasers are now owners of the suit land.

4. The suit O.S.No.6/2015 was filed by Late Narmada w/o Late Satoba Gawali and Laxmibai w/o Rukmanrao seeking partition and separate possession against their brothers and their legal representatives. The suit O.S.No.06/2015 on the file of Prl. Sr. Civil Judge and CJM Court at Bidar was dismissed on 16.12.2017 and thereafter Regular Appeal in R.A.No.109/2018 was preferred by Lrs of Narmada w/o Late Satoba Gawali, i.e. respondent No.2 to 7 herein and Laxmibai w/o Rukmanrao, which came to be allowed by judgment and decree dated 01.02.2022 on the file of Additional District and Sessions Judge at Bidar granting 1/5th share to the appellants / plaintiffs. The parties agree that on 25.08.2022, the respondent No.1 / plaintiff No.2 namely Laxmibai w/o Rukaman Rao, has executed relinquishment deed by way of registered document bearing No.178/2022-2023.

5. The parties agree that after filing of the present second appeal and due to intervention of the elders the parties being Lrs' of Late Narmada w/o Late Satoba Gawali, i.e. respondent No.2 to 7 of this appeal and appellants No.2 to 7 R.A.No.109/2018. The respondents No.2 to 7 in this appeal have agreed and have accepted an amount of Rs.2,00,000/- (Rupees two lakhs Only) each and Rs.12,00,000/- (Rupees Twelve Lakhs) in total which is delivered to us by way of demand drafts as under:

A. Gangaram s/o satoba Gawali, ..Pintf-1(a) / AppInt-2 / Respondent-2 [Rs.2,00,000/- DD No.990213 dated 13.08.2025 of the Canara Bank, Bidar].

B. Tukaram s/o Satoba Gawali, ..

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