1946 Supreme(Nagpur) 24
HIGH COURT OF NAGPUR
MEGHRAJ RAMKARANJI GOLCHA – Appellant
Versus
KESARIMAL RIKHABCHAND – Respondent
Decided on : 21-03-1946
The main legal point established in the judgment is that agreements to compromise a claim to execute a decree may be divided into three classes, and the executing Court may have jurisdiction to enforce the agreement depending on the nature of the compromise.
Headnote:
Compromise - Execution of Decree - Agreements to compromise a claim to execute a decree may be divided into three classes. In the present case, the agreement falls within the third class and it was intended that the appellant should have the right to execute the decree as modified. The executing Court had jurisdiction to place the appellant in possession.
Fact of the Case:
Kesarimal obtained a decree against the appellant and took out execution. A series of agreements and disputes arose regarding the possession of a bungalow, leading to an appeal by the appellant.
Finding of the Court:
The Court found that the agreement fell within the third class of compromises, allowing the appellant to execute the decree as modified. The executing Court had jurisdiction to place the appellant in possession.
Issues: The issues revolved around the nature of the compromise agreement and the jurisdiction of the executing Court to enforce the agreement.
Ratio Decidendi: The Court determined that the agreement fell within the third class of compromises, allowing the appellant to execute the decree as modified. It also held that the executing Court had jurisdiction to place the appellant in possession.
Final Decision: The appeal was allowed with costs throughout, and the order of the executing Court was restored.
1. In civil suit No. 36 of 1929 Sadaran obtained a decree against Kesarimal, the respondent in this Court, and took out execution, apparently early in 1932. Kesarimal put in an application to the executing Court on 19-4-1932 asking that the attachment of his bungalow in the Amraoti Civil Station should be postponed as a marriage was to be performed there in May. The attachment was accordingly postponed, and on 2-5-1932 Kesarimal took advantage of the postponement to execute a document by which he purported to sell this bungalow to Meghran, the appellant in this Court, for Rs. 15,000 with a right to re-purchase within five years.
2. On 3-5-1932 Kesarimal executed another document by which he purported to take the bungalow on lease on a rent to Rs. 111 per month. It was Meghraj's son who was to be married to Kesarimal's niece. Sadaram subsequently attached the bungalow, and Meghraj, after an unsuccessful objection to the attachment, filed a suit under Order 21, Rule 68, Civil P.C. to establish his title to the bungalow. That suit failed, and an appeal to this Court, First Appeal No. 17B of 1935, was compromised on 6th April 1939. By this compromise Meghraj undertook to pay Rs. 7000 to 'Sadaram in part payment of Sadaram's decree against Kesarimal, this sum to be a charge on the bungalow; in return Sadaram recognized Meghraj's title to the bungalow and reserved his right to recover from Kesarimal the rest of the money due under this decree. In the meantime Meghraj had instituted a civil Suit No. 51B of 1938 against Kesarimal for the rent of the bungalow, and on 17th October 1939 he obtained a decree for Rs. 4692-11-8 and costs.
3. On 15th January 1941 Meghraj took out execution of his decree against Kesarimal. On 4th February 1941 Sadaram, Meghraj and Kesarimal, with the help of their legal advisers, came to an agreement among themselves. They agreed that Meghraj should pay Rs. 7000 to Sadaram and that Sadaram should get his decree against Kesarimal certified as fully satisfied. It was also agreed that Meghraj should give up his claim against Kesarimal to the amount due to him under his decree and to all rent accured since and should also give up his right to recover Rs. 7000 from Kesarimal on account of the payment he (Meghraj) had made to Sadaram, and that Kesarimal should put ( Meghraj at once in possession of the bungalow and should disclaim all interest in the bungalow henceforth. Meghraj paid Rs. 7000 to Sadaram on that day, and Meghraj and Kesarimal signed a document in which the terms of the compromise between themselves were embodied.
4. It was stated in that document that possession of the bungalow had been given to Meghraj, though admittedly it had not been given: Kesarimal had however promised to give it with a four days. This petition of compromise was filed in the executing Court. The case was fixed for hearing in the executing Court on 5th February 1941, but nothing was done on that day as Meghraj was absent.
5. By the next date, 8th March 1941, a dispute had arisen beqause possession had not been given, and the case was adjourned on two occasions to allow the parties to settle the dispute. Eventually however on 3rd July 1941 Meghraj put in an application stating that he had agreed to the compromise on the distinct understanding that he would be given immediate possession of the bungalow and asking that either he should be put in possession or that he should be allowed to execute his decree. Kesarimal, with unblushing dishonesty merely contended that it was not open to the executing Court to inquire into the allegation that possession had not been delivered and demanded that the application for execution should be dismissed as fully satisfied.
6. The point was a short one and there was little evidence to be recorded in the matter, but the executing Court proceeded in a most leisurely manner and eventually ordered on 18th September 1942 that Meghraj be put in possession of the bungalow and that the decree should