SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2022 Supreme(P&H) 1177

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudhir Mittal, J.
Karam Singh - Appellant
Versus
Gurmail Kaur & Ors. – Respondents
CR-321-2022
Decided On : 02-02-2022

Advocates:
Mr. Deepak Sharma, Advocate for the Appellant

An order passed on the basis of a compromise in a civil suit amounts to a decree and can be executed. A party seeking to enforce the terms of the compromise must fully abide by the terms thereof.

Headnote:

Decree - Execution of Compromise - The court held that an order passed on the basis of a compromise in a civil suit amounts to a decree and can be executed. The court also emphasized that a party seeking to enforce the terms of the compromise must fully abide by the terms thereof and cannot selectively get the terms of compromise enforced.

Fact of the Case:

The defendant/accused filed objections to the execution of a civil suit and a criminal complaint under Section 420 IPC, which were compromised but the compromise fell through and money was not paid. The Executing Court dismissed the objections, holding that the order passed on the basis of the compromise is an executable decree.

Finding of the Court:

The court found that the order passed on the basis of the compromise is a decree and can be executed. It also emphasized that a party seeking to enforce the terms of the compromise must fully abide by the terms thereof.

Issues: The issues revolved around whether an order passed on the basis of a compromise in a civil suit amounts to a decree and can be executed, and the obligations of parties to a compromise.

Ratio Decidendi: The court interpreted Section 2(2) of the Code which defines 'decree' and Section 89 which provides for settlement of disputes outside the Court. It emphasized that a settlement on the basis of compromise between the parties can be considered under the sub head of 'Mediation' and that an order passed on the basis of compromise is a decree. The court also highlighted that a party seeking to enforce the terms of the compromise must fully abide by the terms thereof.

Final Decision: The revision petition was dismissed as it had no merit.

JUDGMENT

Sudhir Mittal , J. (Oral) - The defendant/accused is the petitioner. He is aggrieved by order dated 22.12.2021 passed by the Executing Court whereby his objections to the execution preferred by respondent No. 1 have been dismissed.

2. Respondent No. 1 had filed a civil suit for possession as well as a criminal complaint under Section 420 IPC against the petitioner and respondents No. 2 and 3. The matter was compromised vide written compromise dated 18.01.2017. In terms of the compromise, the defendants/accused were required to pay a sum of Rs. 7,50,000/- on or before 15.06.2017. In case of failure to make the payment, the plaintiff/complainant - respondent No. 1 was at liberty to reopen the cases and to file a contempt petition.

3. It is evident that the compromise has fallen through and money in terms thereof has not been paid. Thus, the plaintiff/complainant-respondent No. 1 preferred an execution. The petitioner filed objections thereto which have been rejected. The Executing Court has held that the order passed on the basis of the compromise is an executable decree and the objection that execution is not maintainable has no merit.

4. Learned counsel for the petitioner has reiterated the objection raised before the Executing Court. According to him, an order passed on the basis of a compromise in a civil suit does not amount to a decree and can not be executed.

5. Moreover, in terms of the compromise the aggrieved party could have reopened the cases and could also have filed a contempt petition. Thus, the impugned order deserves to be set aside.

6. Section 2(2) of the Code defines 'decree'. It is a formal expression of adjudication by a Court determining the rights of the parties. Section 89 of the Code provides for settlement of disputes outside the Court. According to the said provision, a dispute may be settled outside the Court by way of Arbitration, Conciliation, Lok Adalat or Mediation. Although a settlement on the basis of compromise between the parties is not specifically referred to in the said provision, the same can be considered under the sub head of 'Mediation'. A perusal of the compromise dated 18.01.2017 also shows that it was reached with the intervention of local friends and respectables and, thus, the element of mediation is present.

7. Order passed on the basis of compromise is dated 20.01.2017 which states that the suit is decided in terms of the compromise and that the parties shall remain bound by the compromise thereof. This order would be covered by the definition of decree as the dispute between the parties has been settled and inter se rights have been decided on the basis thereof. The argument that the order dated 20.01.2017 is not a decree is, thus, rejected.

8. The other limb of the argument is that since the parties have been directed to remain bound by the terms of the compromise, respondent No. 1 could have filed for reopening of the cases as well as preferring a contempt petition. This argument places onus upon one party to the compromise to abide by the terms thereof whereas the other party is free to flout its terms. This is not permissible in law. A party seeking to enforce the terms of the compromise must fully abide by the terms thereof and can not selectively get the terms of compromise enforced. It is well known that a party can not blow hot and cold in the same breath.

9. For the aforementioned reasons, the revision petition has no merit and is dismissed.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top