IN THE HIGH COURT OF BOMBAY
(Nagpur)
Ginwala,A.A. J.J.
Deorao Patilbuwa Raut.... Applicant.
Versus
Devkinandan Bhojraj Chandak.... Non-applicant.
Civil Revn. Appln. Nos. 305 and 306 of .1980 decided on 25-1-1984.
Advocate Appeared:
For applicant-Mrs. V. A. Naik.
For non-applicant-L. Mohta.
CIVIL PROCEDURE CODE - APPEAL - SECTION 96(3) - NO APPEAL LIES AGAINST A DECREE PASSED WITH THE CONSENT OF PARTIES - SUB-RULE (2) OF RULE 1A OF ORDER XLIII DOES NOT CONFER A RIGHT OF APPEAL AGAINST AN ORDER RECORDING A COMPROMISE - SUB-SECTION (3) OF SECTION 96 WOULD ONLY DEBAR THOSE APPEALS WHICH ARE FILED AGAINST A DECREE IN WHICH THE APPELLANT DOES NOT DISPUTE THE RECORDING OF A COMPROMISE.
Fact of the Case:
The applicant challenged the decrees passed in two suits on several grounds, one of which was that he had not authorized his counsel to compromise the suit. The appellate court held that the appeals were not maintainable as they were against decrees passed with the consent of the parties.
Finding of the Court:
The court held that sub-rule (2) of Rule 1A of Order XLIII does not confer a right of appeal against an order recording a compromise, but only enables the appellant in an appeal against a decree to dispute or challenge the orders passed in the suit which are not otherwise appealable under Rule 1 of Order XLIII. The court further held that sub-section (3) of section 96 of the Code would only debar those appeals which are filed against a decree in which the appellant does not dispute the recording of a compromise.
Issues: Whether an appeal can lie against a decree which has been passed on the basis of a compromise alleged to have been arrived at between the parties when in appeal the appellant disputes such a compromise.
Ratio Decidendi: The court held that if the appellant disputes the very fact of the decree having been passed with the consent of the parties, then it would not be hit by the provisions of sub-section (3) of section 96 of the Code and in that case, it would be tenable as an appeal against a decree as provided by section 96(1) of the Code.
Final Decision: The court allowed the revision applications and directed the lower appellate court to dispose of the appeals on merits.
2. Devkinandan Bhojraj, non-applicant in Civil Revision Application No. 305 of 1980, had filed a suit against Deorao Patilbuwa Raut who is applicant in both the revision applications, being Regular Civil Suit No. 276 of 1978 in the Court of the Civil Judge, Junior Division at Malkapur for recovering an amount of Rs. 10,150. Defendant Deorao appeared in that suit through a counsel. On 17-10-1979, the counsel for the plaintiff and the counsel for the defendant in the suit filed an application for recording” a compromise as stated in the said application and for drawing up a decree accordingly. Both the counsel stated below their signatures that they had authority to compromise. The learned-Civil' Judge allowed the application and passed a decree in terms of” the compromise. Being aggrieved by this decree, defendant Deorao preferred an appeal iff the District Court at Buldana being Civil Appeal No. 255 of l979.
3. Bhagwandas, non-applicant in Civil Revision: Application No. 306 of ?980, had
also instituted a suit against applicant Deorao being Regular Civil Suit No.. 277 of 1978 in the Court of the Civil Judge, Junior Division; at Malkapur for recovering an amount of Rs. 8,300: Deorao appeared through a counsel. As in the other suit so in this suit also, on 17-10-1979,. both the counsel filed an application for recording a compromise and passing a decree accordingly. This application Appeared to have been; signed by plaintiff Bhagwandas-himself, while if was; signed by the counsel for defendant Deorao. By Ms order passed by the learned Civil Judge-on the application on the same day, he accepted the compromise and-directed a decree to be drawn accordingly. Being aggrieved by this decree, defendant Deorao preferred an appeal in the District Court at Buldana being Civil Appeal No-. 254 of 1979.
4. Both the aboves said appeals were heard together by the learned' district Judge. On behalf of the respondents in both these appeals., namely, Devkiriandan and Bhagwandas, objection was taken to the main tainability' of the appeals-on the ground that the decrees against which these appeals had been filed being consent decrees, no appeal could lie against them as provided by sub-section (3) of section 96 of the Code of Civil Procedure,. 1908 (hereinafter referred to as the 'Code'). On behalf of appellant Deorao in both these appeals, it was contended that even, assuming that the appeals were barred by section 96(3) of the Code, the appeals could be fifed and maintained under Rule 1A of Order XLIII of the Code. The learned District Judge, by a common judgment delivered on 19-2-1980, upheld the contention of the two respondents and held that the appeals having been: filed against decrees passed by the lower Court “with the consent of both the sides”, were not maintainable, Inasmuch as they were prohibited specifically by section 96(3) of the Code. In the view which he took, he rejected the appeals and it is against this order of rejection of the appeals that the present revision applications have been filed by the appellant in those two appeals,
5. Mrs. V. A. Naik, the learned counsel for the applicant in both these revision applications, submitted that sub-rule (2) of Rule 1A of Order XLIII of the Code contemplates an appeal even against a decree passed In a suit after recording a compromise, assuming that the appeal is barred under section 96(3) of the Code. She further contended that at any rate if the validity of a compromise itself is challenged in the appeal, It would not be an appeal against a decree with the consent of the parties and would not come within the mischief of sub-section (3) of section 96 of the Code. She submitted that even though appellant Deorao, hile filing the appeals, had styled them as app
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