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2013 Supreme(Mad) 701

HIGH COURT OF JUDICATURE AT MADRAS
R. BANUMATHI & K.K. SASIDHARAN, JJ.

K.M. Ramanathan & Others
Versus
Rengasamy & Others
Review Application Nos. 145 of 2007 & 172 of 2011
Decided On : 01-02-2013

Advocates Appeared:
For the Petitioners:K. Duraisami, Senior Counsel for Muthumani Duraisami, R. Kannan, Advocates.
For the Respondents:R1, Hema Sampath, Senior Counsel for K. Kalyanasundaram, R4, P. Balaji, R13 to R19, P.T. Asha for Sarvabhavuman Associates, Advocates, R3, Died, R5 to R24, Given Up.

Headnote:

Compromise Decree - Civil Procedure - Order 23 Rule 3 of CPC - Summary of Acts and Sections: Order 23 Rule 3 of CPC - The judgment discusses the core issue of whether a compromise decree can be effected in the absence of a written agreement signed by all parties. The court analyzes the legal provisions of Order 23 Rule 3 of CPC and the mandatory requirement for a compromise to be in writing and signed by all parties. It highlights the interpretations of the Supreme Court in Gurpreet Singh v. Chatur Bhuj Goel, Som Dev v. Rati Ram, Bimal Kumar v. Shakuntala Debi, and Sneh Gupta v Devi Sarup, emphasizing the need for a written and signed compromise to constitute a binding decree.

Fact of the Case:

The Second Respondent filed a Suit for partition, which was dismissed by the Trial Court. The matter was taken up in Appeal, and during the pendency of the Appeal, a compromise decree was passed without the association of all parties to the Appeal. The Review Petitioners, who were not signatories to the compromise, sought to set aside the compromise decree.

Finding of the Court:

The Court found that the compromise decree was passed without the association of all parties to the Appeal, contravening the mandatory requirement of Order 23 Rule 3 of CPC. It acknowledged the legal principles established by the Supreme Court regarding the necessity of a written and signed compromise for a binding decree.

Issues: The core issue was whether the Division Bench was correct in passing a compromise decree in terms of Order 23 Rule 3 of CPC without the association of all the parties to the Appeal.

Ratio Decidendi: The Court's decision was based on the interpretation of Order 23 Rule 3 of CPC and the legal principles established by the Supreme Court, emphasizing the mandatory requirement for a compromise to be in writing and signed by all parties to constitute a binding decree.

Final Decision: The compromise decree was set aside, and the Appeal was restored to file. The Court allowed the Review Petitions and directed the Registry to post the Appeal for hearing before the Division Bench.

JUDGMENT

K.K. Sasidharan, J.

1. Whether in the absence of an agreement in writing, signed by all the parties, compromise of a Suit can be effected, leading to a compromise decree, is the core issue that arise for consideration in these two Review Applications.

Review ApplicationNo.145 of 2007:

2. The Second Respondent Mrs. Palaniammal, filed a Suit in O.S.No.766 of 1981 before the learned Principal Subordinate Court, Coimbatore, praying for a decree of partition, to divide the properties mentioned in “A” & “B” schedules into four equal shares and to allot one share to her with separate possession and enjoyment. According to the Second Respondent, the property originally belonged to her father Viyapuri Naicker and he died intestate in the year 1959 and he was survived by her, besides his widow and Respondent 2 & 3 and her brother Rangasami, the First Respondent in the Review Petition. The First Respondent being the eldest son and the only male member of the family, was helping and assisting the mother. He was looking after the agricultural operations and on account of his position as the sole male member of the family, the sisters had complete faith in him. According to the Second Respondent, taking advantage of the advantageous position, the First Respondent played fraud by obtaining signatures of the sisters, under the pretext that the signatures were required for getting high tension electric connection and made them to execute documents before the Sub-Registrar. The Second Respondent, after several years, came to know that on the strength of the documents executed by her and her sisters, the First Respondent became the absolute owner of the property mentioned in schedule “A” & “B”. She also came to know that the documents executed by her and her sisters were nothing but a Release Deed in favour of the First Respondent, releasing their rights in the co-ownership property. The Suit was resisted by the First Respondent by filing a detailed Written Statement.

3. The learned Subordinate Judge, rejected the case of the Second Respondent. The Trial Court opined that the Release Deed dated 16th February 1972 was genuine and it was acted upon. Accordingly, by accepting the genuineness of the Release Deed, marked as Ex.A1, the Suit was dismissed.

4. The Judgment and Decree in O.S.No.765 of 1981 was taking by up before this Court in A.S.No.753 of 1984. The learned Single Judge ultimately set aside the Judgment and Decree passed by the Lower Court and a direction was issued to the Trial Court to pass a final decree in terms of the judgment.

5. The Judgment and Decree in A.S.No.753 of 1984 was challenged by First Respondent before the Division Bench in L.P.A.No.121 of 2000. The Applicants in Review Application No.145 of 2007 were parties to the Letters Patent Appeal. During the pendency of the Letters Patent Appeal, Respondents 1 & 2, compromised the matter and filed a Memo of Compromise dated 15th March 2004. Similarly, the First Respondent produced a Memo of compromise stated to have been signed by the Third Respondent.

6. The Division Bench found that the Respondents 2,7,12, in the Appeal have not entered appearance. Respondents 11, 13, 16, 17, 23, to 25 were given up by the First Respondent/Appellant. The learned Counsel for the First Respondent submitted before the Division Bench that the Letters Patent Appeal can be disposed of by Court as agreed to between the First Respondent (Plaintiff) and Respondents 1 & 3 (Respondents 1 & 3 in the Appeal). The Letter Patent Appeal was disposed of in terms of the Memo of compromise. The compromise decree was passed on 17th March 2004.

7. It is the grievance of the Petitioners that the First Respondent played fraud on the Court and innocent purchasers, by including the properties assigned to the Review applicants and others on the strength of Ex.A1, in the share to be allotted to the Second Respondent. Though the Review Applicants were all parties to the Letters Patent Appeal, notice was not g
















































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