IN THE HIGH COURT OF ALLAHABAD
Bind Basni Prasad and Gurtu, JJ.
SRI RAM - Appellant
Versus
LEKHRAJ - Respondents
Ex. Second Appeal 1770 Of 1948
Decided On : 01/15/1952
ADJUSTMENT OF DECREE - EXECUTION - AGREEMENT BETWEEN PARTIES - ADJUSTMENT UNDER ORDER 21 RULE 2, CIVIL P. C. - APPLICABILITY TO ALL DECREES - AGREEMENT FOR TRANSFER OF PROPERTY IN SATISFACTION OF DECREE - EXECUTED CONTRACT - ADJUSTMENT - CERTIFICATION.
Fact of the Case:
The decree-holder, Sri Ram, obtained a decree for possession of a house and mesne profits against the judgment-debtor, Lekhraj. Lekhraj filed a second appeal and obtained a stay of the execution proceedings. During the pendency of the second appeal, the parties entered into an agreement whereby Sri Ram agreed to transfer the house to Lekhraj for a price to be fixed by an arbitrator. The arbitrator fixed the price at Rs. 5,000. Lekhraj applied to the execution court under Order 21 Rule 2, Civil P. C. for permission to deposit the sum of Rs. 4,650 in Court and to certify the adjustment of the decree.
Finding of the Court:
The trial court held that the agreement and the award were not an adjustment within the meaning of Order 21 Rule 2, Civil P. C. The lower appellate court reversed the trial court's decision and held that the agreement and the award constituted an adjustment which could be certified under Order 21 Rule 2, Civil P. C.
Issues: 1. Whether the agreement between the parties was an adjustment within the meaning of Order 21 Rule 2, Civil P. C.? 2. Whether Order 21 Rule 2, Civil P. C. is applicable to all decrees or only to money decrees?
Ratio Decidendi: 1. The agreement between the parties was an executed contract, as part of the agreement had already been performed. The judgment-debtor was already in possession of the house, and the decree-holder had transferred the title to Rs. 350 which was in deposit in Court to the judgment-debtor. 2. Order 21 Rule 2, Civil P. C. is not confined to money decrees but extends to any decree. The provisions of Order 23 Rule 3, Civil P. C., which allow for the recording of adjustments of suits, can be extended to execution proceedings.
Final Decision: The appeal was dismissed with costs. The sum deposited by the judgment-debtor, together with the amount of Rs. 350 already in deposit in Court, was to be paid to the decree-holder when he made an application for its withdrawal according to law, and the satisfaction of the decree was to be recorded.
BIND BASNI PRASAD, J.
( 1 ) THIS is a decree-holders appeal arising out of an execution proceeding. The relevant facts are that one Inder-man was the owner of a house He died leaving a widow. On 18th September 1934, Lekhraj, the judgment-debtor-respondent, obtained a sale deed in respect of this house from the widow. Sri Ram, the decree-holder-appellant, alleging himself to be a reversioner brought a suit for the possession of the house and for mesne profits. This suit was decreed and the decision was upheld, with a slight modification, in appeal. Sri Ram applied for the execution of the decree on 20th July, 1946. Lekhraj filed a second appeal in this Court and obtained an order for the stay of the execution proceedings. The second appeal was dismissed by this Court on 14th February 1947. The stay order was then discharged. On the 2nd April 1947, Lekhraj, respondent, made an application under Order 21, Rule 2, Civil P. C. alleging that the parties had come to a compromise by means of a written agreement on 15th February 1947, according to which Sri Ram, decree-holder, had agreed to transfer the house to him for a price which may be fixed by one Lakhpat Singh who was appointed as an arbitrator for this purpose. On 20th february 1947, Lakhpat Singh gave his award to the effect that the house shall be transferred by sri Ham to Lekhraj for a sum of Rs. 5,000. Sri Ram was given the right to withdraw Rs. 350 which was in deposit in court and the judgment-debtor was required to pay the balance of Rs. 4,650. Lekhraj in his application under Order 21 Rule 2, Civil P. C. prayed that he might be permitted to deposit the sum of Rs. 4,650 in Court but the trial Court did not grant such permission.
( 2 ) SRI Ram denied the agreement and the award and contended that even on the facts stated by the judgment-debtor no adjustment could be certified under Order 21 Rule 2, Civil P. C.
( 3 ) LEARNED Munsiff held that the decree holders contention was false, that there was really an agreement between the parties under which the decree-holder was to transfer the house in dispute to the judgment-debtor for such sum as might be fixed by Lakhpat Singh and that Lakhpat Singh had determined the same at Rs. 5,000. He however, held that Order 21 Rule 2, Civil P. C. had no application to the present case and that the agreement and the award were not an adjustment within the meaning of this rule. The judgment-debtors application was accordingly dismissed.
( 4 ) THE judgment-debtor went up in appeal. Learned Civil Judge concurred with the findings of the trial Court that the parties had agreed that the house was to be transferred to Lekhraj on payment of such sum as might be determined by Lakhpat Singh and that for this purpose the deed of agreement, Ex. 1, was duly executed by them. Further he held that Order 21 Rule 2, Civil p. C. applied to all the decrees and not only to money decrees and that the adjustment alleged by the judgment-debtor could be certified. It was also held by him that even if Order 21 Rule 2, civil P. C. did not apply to the present decree there was nothing in the Civil P. C. which prohibited such a compromise between the parties and that the execution Court could well take into consideration the agreement between the parties for the purpose of deciding whether or not the decree was executable. In the result he allowed the appeal.
( 5 ) THE decree-holder now comes in appeal. The finding of the lower appellate Court that a deed of agreement was executed by the parties according to which the decree-holder was to abandon the right to execute the decree in lieu of the judgment-debtor paying him Rs. 5,000 is one of fact and learned counsel for the appellant has not challenged it rightly. He had argued, however, that the agreement entered into between the parties was an executory contract and not an executed one. We are unable to agree with this Lekhraj, judgment-debtor, was already in possession of the house. According to the contract this p
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