IN THE HIGH COURT OF KERALA AT ERNAKULAM
K.HARILAL, C.S.DIAS, JJ.
Gopakumar, S/o. Chellan Pillai – Appellant
Versus
Sunitha Gopakumar, w/o. Gopakumar – Respondent
Mat.Appeal.No.208 of 2020
Decided on : 05-03-2020
Compromise Decree - Registration Act - Section 17(1)(b), Section 17(2) - The court discussed the enforceability of a compromise decree and the requirement for compulsory registration under the Registration Act. It concluded that a decree made on a compromise and comprising of immovable property, other than the subject matter of the suit, requires compulsory registration under Section 17(1)(b) read with clause (vi) of the Act. The court also clarified that where the terms of promises in a compromise agreement are not reciprocal, but independent and self-working, one party cannot refuse to perform their obligation to the other, unless and until the other performs their obligation to them.
Fact of the Case:
The appellant and the respondent, husband and wife, were parties to a compromise decree passed in a dispute over money and gold ornaments. The respondent filed an execution petition to enforce the assignment of property to their children as per the compromise agreement. The appellant objected to the enforceability of the compromise decree, citing non-registration and non-performance by the respondent.
Finding of the Court:
The court rejected the appellant's contentions and held that the compromise decree is enforceable, despite the absence of registration and non-performance by the respondent. It clarified the requirements for compulsory registration under the Registration Act and the enforceability of non-reciprocal promises in a compromise agreement.
Issues: The issues involved the enforceability of a compromise decree, the requirement for compulsory registration under the Registration Act, and the performance of non-reciprocal promises in a compromise agreement.
Ratio Decidendi: The court's decision was based on the interpretation of Section 17(1)(b) and Section 17(2) of the Registration Act, clarifying the scope of compulsory registration for a compromise decree. It also relied on the principles of non-reciprocal promises and the obligations of parties in a compromise agreement.
Final Decision: The appeal was dismissed, affirming the family court's finding that the execution petition is enforceable and rejecting the appellant's arguments against its maintainability.
JUDGMENT :
Harilal, J
The appellant and the respondent are the judgment debtor and decree holder respectively in E.P.No.23/2019 in O.P.No. 575/2014 on the files of the Family Court, Mavelikara. They are husband and wife respectively. This appeal is filed challenging the order passed by the Family court rejecting the challenge against maintainability of the execution petition, holding that the compromise decree passed in O.P.No.575/2014 is an enforceable one.
2. The respondent filed O.P.No.575/2014 seeking a decree for return of money and gold ornaments from the appellant herein. The matter in dispute had been settled by way of compromise agreement, which culminated into a compromise decree accordingly. The compromise agreement consists of five clauses. As per the first clause, both parties agreed to maintain their marital relationship. As per the second clause, the appellant agreed to assign 12 cents of his property to his children. As per the third and fourth clauses, the respondent herein agreed to withdraw her claim under the Domestic Violence Act and the claim for return of money and gold ornaments. As per the fifth clause, the respondent will not obstruct the appellant's right to meet the children.
3. Thereafter the respondent filed E.P.No.23/2019 to enforce the execution of the assignment deed in favour of the children as promised by the appellant under clause (ii). The appellant entered appearance and filed an objection contending as follows:
ii. The compromise decree is not registered under Section 17(1)(b) of the Registration Act.
iii. The respondent failed to perform her part in the compromise agreement and thereby she violated the terms of the decree.
iv. The children are not parties to the suit and the compromise decree is valid only insofar as the compromise relates to the parties to the suit.
4. After considering the rival pleas, the family court rejected all the aforesaid contentions on a finding that the compromise decree is an enforceable one, notwithstanding the absence of its registration under Section 17(1)(b) of the Registration Act and non-performance of the promises from the part of the respondent/decree holder. The legality and correctness of the aforesaid findings are challenged in this appeal.
5. Heard Sri.P.B.Ajoy, the learned counsel for the appellant.
6. Sri.P.B.Ajoy, the learned counsel for the appellant advanced arguments exhaustively contending that the execution petition is not an enforceable one, as the non-registration under Section 17(1)(b) of the Registration Act is fatal. According to him, since the compromise decree is comprising of immovable property, other than the subject matter of the suit, it will not fall under Clause (vi) of Section 17(2) of the Act and thereby the compromise decree became compulsorily registrable.
7. The questions that arises for consideration in view of the above arguments is as follows:
ii. Whether the obligation imposed on a party to the compromise decree to assign an immovable property, other than subject matter of the suit requires compulsory registration under Section 17(1)(b) of the Registration Act.
8. Going by the terms of compromise imposing obligation on the appellant, we find that what is agreed to be done by clause (ii) is a promise to assign his immovable property to his children and no immovable property has been transferred by the compromise decree itself.
9. In the above context, let us examine the provisions, which would make the registration of a compromise decree compulsory. On a reading of Section 17(1)(b) of the Registration Act, we find that the non-testamentary instruments, which purport or operate to create, declare, assign, limit, or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of Rs.100/-and upwards, to or in immovable propert
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