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1988 Supreme(Bom) 119

IN THE HIGH COURT OF BOMBAY
(Nagpur Bench)
M.M. Qazi W.M. Sambre, JJ.
Harshadbhai Shah another .... Appellants.
Versus
Rani Kamla Raje wd/o Kunwar Jaisinghrao
Bhonsale others..... Respondents.
First Appeal No. 195 of 1983 with First Appeal No. 196 of 1983, decided on 4-4-1988.
Advocates appeared :
V.C. Daga, V.M. Deshpande with A.S. Bobde, A.G., for appellants.
V.R. Padhye, for respondent No. 1.
A. Bade, for respondent No. 3 in FA 195, for No. 2 in FA 196/83.
K.R. Gohokar, for respondent No. 1 in A.F 195 for No. 10 in FA 196/83.

A compromise petition must be signed by all the parties.

Headnote:

COMPROMISE PETITION - CIVIL PROCEDURE CODE, ORDER XXIII, RULE 3 - SIGNATURE OF ALL PARTIES - ESSENTIAL - COURT CANNOT ACT ON COMPROMISE PETITION NOT SIGNED BY ALL PARTIES.

Fact of the Case:

The impugned order was passed by the Joint Civil Judge (Senior Division), Nagpur, on the basis of the compromise petition on 11-3-1983. The compromise petition was not signed by all the parties. As many as five parties did not sign the compromise petition and as many as seven parties did not verify the same. Inspite of this, the learned trial Court accepted the compromise and directed that the decree be drawn in terms thereof.

Finding of the Court:

The impugned Order is contrary to the provisions of Order XXII, Rule 3 of the Civil Procedure Code. The compromise petition must be signed by all the parties. The signature of Shri Ahirrao on the compromise petition has no meaning. Moreover, the power of attorney does not authorise Shri Ahirrao to enter into a compromise on behalf of Shalinidevi.

Issues: Whether the compromise petition can be acted upon unless and until it is signed by all the parties.

Ratio Decidendi: A compromise petition cannot be acted upon unless and until it is signed by all the parties. The word 'satisfies' denotes satisfaction of the claim of the plaintiff wholly or in part and for this there need not be an agreement in writing signed by the parties.

Final Decision: Appeals allowed. The impugned Order is quashed and set aside. However, there will be no order as to costs.

JUDGMENT - M.M. QAZI, J.:---The impugned Order has been passed by the Joint Civil Judge (Senior Division), Nagpur, on the basis of the compromise petition on 11-3-1983. There is no dispute that the compromise petition was not signed by all the parties. As many as five parties did not sign the compromise petition and as many as seven parties did not verify the same. Inspite of this, the learned trial Court accepted the compromise and directed that the decree be drawn in terms thereof. The learned trial Court further directed that the 2/9th share of Shalinidevi shall continue to remain with the Court of Wards till the rights of the parties entitled to her share were decided. It may be mentioned here that Shalinidevi is alleged to have executed two Wills-(1) dated 16-1-1982, under which the appellants claim to have been appointed as executors, and (2) dated 4-8-1982, under which Mrs. Ahirrao and Rajendrasingh Jadhao claim to be the legatees of Shalinidevi. They have initiated probate proceedings which are still pending before the High Court at Bombay.

2. Mr. Bobde, learned Counsel appearing on behalf of the appellants, submitted that the impugned Order is contrary to the provisions of Order XXII, Rule 3 of the Civil Procedure Code. The portion of the aforesaid provisions, which is material for our purposes reads thus :-

“Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise, in writing and signed by the parties or where the defendant satisfies the plaintiff in respect of the whole or any part of the subject matter of the suit, the Court shall order such agreement, compromise or satisfaction to be recorded, and shall pass a decree in accordance there with so far as it relates to the parties to the suit, whether or not the subject-matter of the agreement, compromise or satisfaction is the same as the subject matter of the suit.”

The mere reading of the above provisions would show that the compromise petition must be signed by all the parties. There is no dispute that the compromise petition must referred supra was not signed by all the parties and yet, the trial Court acted on the compromise petition and directed that the decree be drawn in terms there of Mr. Ahirrao, Advocate, who held a special power of attorney on behalf of Shalinidevi, though signed the compromise petition, has rightly made an endorsements below his signature to the effect that it was subject to the condition of being confirmed by Shalinidevi. Shalinidevi was alive when the compromise petition was filed, but she was dead when the compromise petition came up for verification. She died on 12-8-1982. Having regard to all these facts, the signature of Shri Ahirrao on the compromise petition has no meaning. Moreover, the power of attorney does not authorise Shri Ahirrao to enter into a compromise on behalf of Shalinidevi.

3. Mr. Bobde has invited our attention to the decision reported in A.I.R. 1988, S.C. 400 (Gurpereet Singh v. Chatur Bhuj Goel)1. Paragraphs 10 and 11 of the said judgement reads thus :-

“Under Rule 3 as it now stands, when a claim in suit has been adjusted wholly or in part by any lawful agreement or compromise, the compromise must be in writing and signed by the parties and there must be a complete agreement between them. To constitute an adjustment, the agreement or compromise must itself be capable of being embodied in a decree. When the parties enter into a compromise during the hearing of a suit or appeal, there is no reason why the requirement that the compromise should be reduced in writing in the form of an instrument signed by the parties should be dispensed with. The Court must therefore insist upon the parties to reduce the terms into writing.”

In our considered opinion, the view to the contrary expressed by the High Court in (Manohar Lal v. Surjan Singh)2, 1983 Punj.L.J. 402 that the first relates to a lawful agreement or compromise arrived at by the







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