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1969 Supreme(Online)(All) 28

ALLAHABAD HIGH COURT
Pathak, Dhavan, Asthana, Verma, Rajeshwari Prasad, JJ
Habib Mian and Ishaq Mian – Appellant
Versus
Mukhtar Ahmad – Respondent
Civil Suit No. 18 of 1950 | Appeal No. 9 of 1961



Conditional compromise decrees require fulfillment of specific obligations for enforceability; failure to comply renders them unenforceable.

Headnote:(A) Civil Procedure Code - Section 47 - Execution of decree - Compromise decree - Decree-holder's obligation to secure dismissal of appeal before the first installment's due date - Failure renders decree unenforceable. - Appellants contended execution barred by limitation, while respondents maintained decree valid until appeal dismissed. - Court agreed with applicant's position, determining the significance of compliance by the decree-holder notwithstanding the installment schedule. - Appeal dismissed due to non-fulfillment by decree-holder, resulting in the suit's dismissal as a consequence. (Paras 9, 15, 24, 45, 48)

Facts of the case:
The dispute involves a compromise decree mandating installment payments for a judgment debt which was to become enforceable upon the dismissal of a third party appeal. Decree-holder defaulted in securing a necessary court judgment, impairing execution claims.

Findings of Court:
Court upheld notion that execution of a conditional decree hinges on timely discharge of stipulated terms. Issued rulings elucidate the interplay of compromise terms vis-à-vis execution law.

Issues: The questions before the court were related to the executability of a conditional compromise decree and applicable limitation periods for enforcement.

Ratio Decidendi: The court concluded that provisions of the compromise decree indicated that the obligation to execute the decree was contingent upon the timely dismissal of the third-party appeal, which was not fulfilled in this case. Thus, execution was not permitted.

Result: Appeal allowed with costs.

1. I have had the advantage of reading the opinion prepared by my brother Pathak, but for reasons stated in this opinion, I am unable to agree with him and have come to opposite conclusions.

2. This second appeal arises out of the proceedings for execution of the decree passed in Civil Suit No. 18 of 1950 of the Court of the Civil Judge, Ghazipur, on 17-3-1952 in terms of the compromise entered into by the parties on that date. The plaintiff to the suit was Mukhtar Ahmad who is respondent in this second appeal. The defendants were Habib Mian and Ishaq Mian, who are the appellants before us.

3. Clause 1 of the compromise deed provides that in view of the compromise arrived at between the parties, a decree in favour of the plaintiff and against the defendant No. 2 for a sum of Rs. 6,500 be passed subject to the condition that the decretal amount shall be payable in four annual instalments. The first instalment would be due on 31st of March 1953 and the remaining instalments shall be payable on March 31 of the succeeding years. In case of default in payment of any instalment, the decree - holder would be entitled to execute the decree for the instalments remaining due.
Clause 2 of the compromise deed is to the effect that the plaintiff would get Suit No. 121 of 1951, which he has filed in the Court of the Munsif, Mahmodabad, dismissed within a period of one week from "today" (17-3-1952). In case the plaintiff does not get the suit dismissed within the aforesaid period, the defendant would be entitled to move the Court for the dismissal of the suit by filing a copy of the compromise deed in that Court.

4. Clause 4 of the compromise deed provides that the plaintiff is responsible to get the appeal filed by his aunt, Mst. Roza Bibi, in the High Court against the decree passed by the Civil Judge, Ghazipur, in suit No. 9 of 1951, dismissed. In case the plaintiff does not get the aforesaid appeal dismissed, all the terms of this compromise would be deemed to have been cancelled and the suit would be deemed to have been dismissed. In case he (the plaintiff) gets the appeal dismissed, the costs of the appeal shall be on the parties.

5. Admittedly the judgment - debtors, Habib Mian and Ishaq Mian, did not make the payment of any instalment though the decree - holder Mukhtar Ahmad got Suit No. 121 of 1951 dismissed within the period of one week of the date of the compromise. On 31st March 1960 the decree - holder applied for execution of the decree and prayed for the recovery of sums due to him in respect of the instalments payable on March 31, 1954, March 31, 1955 and March 31, 1956.

6. The judgment - debtors filed an objection under S.47, Civil P. C., on 1st of December 1960, objecting the executability of the decree on the ground that the decree - holder had not secured the dismissal of the appeal of his aunt, pending in this Court. The execution Court allowed one month's time to the decree - holder to get the appeal dismissed and file a copy of the dismissal order. On 16th of December 1960, the decree - holder filed a certified copy or the order dismissing the appeal of Mst. Roza Bibi.

7. On 17th of December 1962, the execution Court dismissed the objections of the judgment - debtors under S.47, Civil P. C. The judgment - debtors objectors filed Appeal No. 9 of 1961 in the Court of the District Judge, Ghazipur. This appeal was dismissed by the learned District Judge on 27-7-1963. Against the decree aforesaid of the learned District Judge, the instant second appeal has been filed in this Court

8. The second appeal came up for hearing before Dhavan, J., who referred it to a larger Bench. The case was then placed before a Bench consisting of S. K. Verma and Rajeshwari Prasad, JJ., who made a reference to a Full Bench. This is how the case has come up before us.

9. The following two questions were raised before Dhavan J. and also before the Bench consisting of S. K. Verma and Rajeshwari Prasad, JJ : -
1. That the compromise decree was a conditional






























































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