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1955 Supreme(Bom) 123

IN THE HIGH COURT OF BOMBAY
Shah, J.
Appellants: Misrilal Jalamchand and Anr.
Versus
Respondent: Sobhachand Jalamchand and Ors.
A.F.O. No. 21 of 1954
Decided On: 15.09.1955
Counsels:
For Appellant/Petitioner/Plaintiff: V.M. Tarkunde, Adv.
For Respondents/Defendant: R.B. Garge, J.B. Patil and H.R. Gokhale, Advs.

A court has the power to record a compromise under Order 23, Rule 3, Civil Procedure Code, if it is satisfied that the suit has been adjusted wholly or in part by a lawful agreement or compromise.

Headnote:

COMPROMISE - ORDER 23, RULE 3, CIVIL PROCEDURE CODE - COURT'S POWER TO RECORD COMPROMISE - COURT MUST BE SATISFIED THAT THERE IS A LAWFUL AGREEMENT ADJUSTING THE SUIT - COURT MUST CONSIDER PLEA OF UNDUE INFLUENCE.

Fact of the Case:

Plaintiffs filed a suit for partition and separate possession of their one-half share in certain properties. During the pendency of the suit, the parties arrived at a compromise, which was reduced to writing and signed by the plaintiffs and defendants 1 and 3. The pleader for the plaintiffs, however, refused to sign the compromise terms. The trial court, after hearing the parties, recorded the compromise and passed a decree in terms thereof. The plaintiffs appealed, challenging the validity of the compromise.

Finding of the Court:

The court held that the compromise was valid and binding on the plaintiffs. It found that the plaintiffs had voluntarily entered into the compromise after understanding the terms thereof. The court also found that there was no evidence of fraud, misrepresentation, or undue influence.

Issues: 1. Whether the compromise was valid and binding on the plaintiffs. 2. Whether the trial court erred in recording the compromise and passing a decree in terms thereof.

Ratio Decidendi: 1. The court has the power to record a compromise under Order 23, Rule 3, Civil Procedure Code, if it is satisfied that the suit has been adjusted wholly or in part by a lawful agreement or compromise. 2. In order to determine whether there is a lawful agreement, the court must consider whether the agreement is vitiated on any ground such as illegality, fraud, misrepresentation, or undue influence. 3. In the present case, the court found that the compromise was not vitiated by any such ground and was therefore valid and binding on the plaintiffs.

Final Decision: The appeal was dismissed.

Judgment

1. The plaintiffs who are husband and wife, respectively, filed Special Suit No. 6 of 1952 in the Court of the Civil Judge, Senior Division at Nasik, for a decree for partition and separate possession of their one half share in certain properties. During the pendency of the suit it appears the parties arrived at a compromise and the terms of the compromise were reduced to writing.

Defendant 3 who was a minor was represented by defendant 1 his father; and the Court authorised defendant 1 to enter upon and sign the compromise terms on behalf of defendant 3. It appears that the pleader who appeared on behalf of the plaintiffs regarded the terms of the compromise as unfavourable to the plaintiff and he filed purchis Ex. 60 stating that no compromise terms were arrived at between the parties.

It may be mentioned that the compromise terms were settled on 15-7-1953. After the purshis Ex. 60 was filed by the pleader for the plaintiffs the suit stood adjourned for hearing to 22-7-1953. On 16-7-1953, plaintiff 1 and defendant 1 appeared before the Court and filed in Court a writing incorporating the terms of compromise. It was recorded at Ex. 64.

Exhibit 64 was signed by defendant 1, plaintiff 1 and defendant 1 acting for and on behalf of the minor defendant 3. The pleader for the plaintiffs did not sign the compromise terms Ex. 64. The learned Judge thereupon asked plaintiff 1, who was present in Court before him, whether in spite of the objection of his pleader he was willing to abide by the terms of the compromise and it appears plaintiff 1 replied in the affirmative.

The learned Judge then gave time to the parties to think over the matter. He then again called the parties before him after about two hours and the terms of the compromise were read out and explained to the parties. The learned Judge again asked plaintiff 1 whether he still accepted the terms of compromise, plaintiff 1 told the learned Judge that he had voluntarily entered into the compromise.

Thereupon the learned Judge ordered the compromise to be recorded so far as plaintiff 1 was concerned, and directed plaintiff 1 and defendant 1 to bring their respective wives before the Court to sign the terms of compromise. On 18-7-1953, defendant 2 appeared before the Court. The compromise was read over to her and explained to her, and thereafter she put her thumb impression 911 the compromise terms in the presence of the learned Judge.

On 20-7-1953, plaintiff 1 submitted Exhibit to the Court stating that the Court had not passed final orders on the consent terms which were submitted on 16-7-1953, that his signature was obtained on the compromise terms by deceiving him and by bringing undue pressure upon him and that seeing that he was ailing defendant 1 and persons with him had taken advantage of his ignorance.

Plaintiff 1 also stated that he did not admit the compromise terms and that he had not benefited in any way under the compromise. He prayed that the Court should not sanction the aforesaid compromise, and that the suit should be fixed for hearing. Plaintiff 2 also submitted an application Ex. 65 requesting the Court not to sanction the compromise.

The learned Judge heard the parties on both the applications Exs. 65 and 66. He held that it was not open to plaintiff 1 to resile from the compromise which he had entered into with defendant 1. In his view the compromise effected by plaintiff 1 was voluntarily entered into by him and after understanding what the terms of the compromise were. The learned Judge set out the history of the case in para. 3 of his order and observed that the compromise was effected voluntarily after he had understood all the terms thereof.

On the application filed by plaintiff 2, the learned Judge observed that it was not clear why plaintiff 2 was added as a party to the suit, but presumably she was so added because she had claimed certain ornaments on her person. He then observed that by compromise Ex. 64, it was agreed that the ornaments on the pe



























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