IN THE HIGH COURT OF DELHI AT NEW DELHI
Siddharth Mridul, Gaurang Kanth, JJ.
Ajay Mahajan – Appellant
Versus
Mridula Mukherjee & Anr. – Respondents
FAO(OS) 12 of 2023, CM APPL. 6299 of 2023 (Stay), CM APPL. 6300 of 2023 (Exemption), CM APPL. 6301 of 2023 (Exemption), CM APPL. 6302 of 2023 (delay)
Decided On : 13-04-2023
Compromise Deed - Civil Procedure - Order XXIII Rule 3, Section 151 of the Code of Civil Procedure, 1908 - Court-fees Act, 1870
Fact of the Case:
Mr. Ajay Mahajan filed a joint application under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908, along with his siblings, stating that they have entered into an amicable settlement formalized into a compromise deed. The parties requested a decree in terms of the compromise deed, which was allowed by the court.
Finding of the Court:
The court allowed the application and decreed the subject suit in terms of the compromise deed. The court also directed the parties to comply with their respective obligations as per the compromise deed and ordered the refund of court fees in accordance with the provisions of the Court-fees Act, 1870.
Issues: Application for decree in terms of compromise deed, refund of court fees
Ratio Decidendi: The court can pass a decree in terms of a compromise deed under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908. Refund of court fees can be granted in accordance with the provisions of the Court-fees Act, 1870.
Final Decision: The court decreed the subject suit in terms of the compromise deed, directed the parties to comply with their obligations, and ordered the refund of court fees. The appeal and the suit were disposed of, and the judgment was to be uploaded on the court's website.
JUDGMENT
Siddharth Mridul, J. (Open Court)
1. Mr. Ajay Mahajan, the appellant herein, has filed a joint application under the provisions of Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908, along with his siblings namely Ms. Mridula Mukherjee (respondent no. 1 herein and original plaintiff, in the subject suit) and Ms. Sucheta Mahajan (respondent no. 2 herein and original defendant no. 2, in the subject suit); stating therein that they have entered into an amicable settlement, the terms of which have been formalized into a compromise deed dated 29.03.2023 (a copy of the same is annexed to the present application as Annexure A).
2. In view of the foregoing, it is stated on behalf of the parties that a decree, in terms of the aforesaid compromise deed dated 29.03.2023, be passed.
3. It is further, the admitted position between the parties that all outstanding disputes, forming the subject matter of the suit, being CS(OS) No. 585/2018, titled as `Mridula Mukherjee Vs. Ajay Mahajan and Anr.' stand concluded in terms of the aforesaid compromise deed dated 29.03.2023.
4. The present application is duly supported by affidavits, on behalf of Mr. Ajay Mahajan, Ms. Mridula Mukherjee and Ms. Sucheta Mahajan, respectively. The same is also counter-signed by the counsel representing the parties, in the present appeal.
5. In view of the foregoing, the present application is allowed; and the subject suit is hereby decreed.
6. The Registry is directed to draw up a decree, in terms of the compromise deed dated 29.03.2023, as reproduced herein below:
"SETTELEMENT/COMPROMISE DEED
That this Settlement/Compromise Deed is executed at Delhi on this 22 day of March 2023 between
Smt. Mridula Mukherjee D/o late Sh. Vidya Dhar Mahajan R/o M-10, Lajpat Nagar 3, New Delhi-110024, herein and hereafter termed as the First Party.
And
Sh. Ajay Mahajan S/o late Sh. Vidya Dhar Mahajan Rio D-805, New Friends Colony, New Delhi, Delhi-110025, herein and hereafter termed as the Second Party.
And
Smt. Sucheta Mahajan D/o late Sh. Vidya Dhar Mahajan Rio 105, Uttarakhand,
Jawaharlal Nehru University, New Delhi-110067, herein and hereafter called as the Third Party.
The term of First Party, Second Party and Third Party shall mean and include their representatives, legal heirs, successors, executors, administrators, legal representatives, assignees, and nominees etc.
WHEREAS the First Party had filed a Civil Suit no. CS(OS) 585/2018 which is pending before the Hon'ble court on the original side and FAO (O.S.) No. 12/2023 arising from an interim order which is pending before the Hon'ble Court of Division Bench of the High Court of Delhi.
AND WHEREAS the parties have mutually agreed to settle all their disputes pertaining to the subject matter of the suit CS(O.S.) 585/2018 and FAO(OS) 12/2023 of their own free will and admonition without any pressure coercion and undue influence on the following terms and conditions.
Terms and conditions are as under:
1. That all the parties agree and accept the will dated 17.10.2000 as the last and final will of late Smt. Savitri Mahajan and agree to the partition of the properties in terms of the will dated 17.10.2000. The copy of which signed by all the parties is annexed to this settlement.
2. That the first and third party leave their claim with respect to the will dated 04.05.2001 stated to be of late Smt. Savitri Mahajan and accept the will dated 17.10.2000 as the last and final will.
3. That the parties mutually agree to request the Hon'ble Court to pass a decree in the following terms:
a) A decree of declaration declaring the will dated 17.10.2000 as the last and final will of Smt. Savitri Mahajan.
b) A decree of partition pertaining to the properties left behind by Smt. Savitri Mahajan in terms of the will dated 17.10.2000 executed by late Smt. Savitri Mahajan.
4. That all disputes forming subject matter of the suit would stand concluded and settled in terms of this settlement.
5. That this settlement has been rea
The court has the authority to pass a decree in terms of a compromise deed under the relevant provisions of the Code of Civil Procedure, 1908, and can order the refund of court fees in accordance wit....
The court has the discretion to permit parties to settle their disputes in the interest of justice, and a compromise/settlement agreement can be allowed if found to be legal.
The court upheld the legality of a settlement agreement between parties in a civil dispute, allowing the appeal to be resolved without further litigation.
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.
The main legal point established in the judgment is the value of family arrangements in resolving disputes and bringing harmony in the family, and the finality of settlements made with the consent of....
A compromise deed can resolve disputes over joint ownership, and courts will enforce valid agreements between parties.
The main legal point established in the judgment is the enforceability of an oral Family Settlement, reduced in writing, under Order XXIII Rule 3 of the Code of Civil Procedure, 1908.
The central legal point established in the judgment is the validity and binding nature of the compromise deed in settling disputes and passing the decree of partition.
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