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2024 Supreme(Online)(DEL) 32041

HIGH COURT OF DELHI
Anup Jairam Bhambhani, J
DALJEET SINGH – Appellant
Versus
M/S JOHAR TOWERS PVT.LTD. – Respondent
CM APPL.-47591/2022



A consent decree is binding and cannot be set aside without proving coercion or invalidity; parties must comply with its terms, including obligations for property regularisation.

Headnote:(A) Code of Civil Procedure, 1908 - Order XLIII Rule 1A and Order XXIII Rule 3 - Recall of compromise order - Appellant seeks to recall the order dated 24.05.2012, which recorded a compromise between parties regarding the sale deed of the suit property - The court finds no coercion or invalidity in the compromise, emphasizing that both parties had consented to the terms, including payment and regularisation of the property. (Paras 22, 24, 39)

(B) Consent Decree - Nature and Effect - The court discusses the implications of a consent decree, stating it creates estoppel by judgment and resolves disputes conclusively between parties. (Paras 19, 19.1, 19.2)

Facts of the case:
The appellant and respondent entered into a compromise regarding the sale of property after prolonged litigation, with specific terms for payment and execution of the sale deed. (Paras 4-5)

Findings of Court:
The court upheld the compromise order and directed the respondent to execute the sale deed for the entire property after regularisation. (Paras 39.1)

Issues: Whether the appellant was coerced into the compromise and if the respondent complied with the terms. (Paras 24, 32)

Ratio Decidendi: The court ruled that the compromise was lawful and voluntary, and the respondent was obligated to execute the sale deed as per the compromise terms. (Paras 24, 39.1)

Result: Applications partially allowed, with directions for execution of the sale deed and regularisation of the property. (Paras 39)

J U D G M E N T

ANUP JAIRAM BHAMBHANI J.

CM APPL. 47591/2022 CM APPL. 34855/2023 By way of CM APPL. No. 47591/2022 filed under Order XLIII Rule 1A(2) of the Code of Civil Procedure 1908 („CPC‟), the appellant seeks recall of order dated 24.05.2012 made in the present proceedings, whereby the present regular first appeal alongwith RFA No.193/2003, were disposed-of as settled and satisfied in terms of the observations in that order; or, in the alternate, for modification of that order and a direction to the respondent to obtain a sanctioned building plan from the Municipal Corporation of Delhi („MCD‟) alongwith the structural building certificate to comply with that order. By way of CM APPL. No. 34855/2023 filed under section 151 CPC, the Signature Not Verified respondent seeks dismissal of CM APPL. No. 47591/2022 and modification of order dated 31.01.2023 passed by this court, whereby the respondent was directed to take steps for regularisation of property being the Third Floor of property bearing No. B-2/88, Safdarjung Enclave, New Delhi („suit property‟).

2. Notice on CM APPL. No. 47591/2022 was issued on 09.11.2022. No formal notice was issued on CM APPL. No. 34855/2023 and vide order dated 12.07.2023, it was observed that this application would be considered alongwith CM APPL No. 47591/2022.

3. The record shows that vide order dated 12.07.2023, the delay of about 3717 days in filing CM APPL. No. 47591/2022 was condoned and further proceedings in the execution petition pending before the learned Additional District Judge, Saket District Court, New Delhi („ADJ‟), arising from compromise order dated 24.05.2012, were stayed by this court, until further orders.

BRIEF BACKGROUND

4. The matter arises from 02 suits decided by the learned Trial Court.

Suit No. 374/98 was filed by the respondent/M/s Johar Towers Pvt. Ltd. inter-alia seeking declaration, possession and mesne profit against the appellant in respect of the suit property; and Suit No.25/2000 was filed by the appellant/Daljeet Singh seeking specific performance of agreement to sell dated 22.03.1997. Both suits were dismissed vide common judgment dated 21.11.2002 and the connected appeals arising from that judgment were disposed-of by this court vide compromise order dated 24.05.2012.

Signature Not Verified

5. A perusal of compromise order dated 24.05.2012 shows that it proceeded on an agreement between the parties that the appellant would pay to the respondent an additional sum of Rs. 59 lacs, in consideration whereof the respondent was required to execute in favour of the appellant a sale deed in respect of the suit property and to have the sale deed registered in accordance with law. Order dated 24.05.2012 is reproduced below :

“1. During the course of hearing, it is agreed that M/s. Johar Towers Pvt. Ltd./appellant will receive a total sum of Rs.59,00,000/- from Sh. Daljeet Singh/respondent in full and final settlement of all the claims of M/s. Johar Towers Pvt. Ltd./appellant against Sh.Daljeet Singh/respondent. This payment shall be made on or before 31.10.2012. The payment of this amount will be made simultaneous to the execution of the sale deed by M/s. Johar Towers Pvt. Ltd./appellant in favour of Sh.Daljeet Singh/respondent qua the suit property namely the third floor of B-2/88, Safdarjung Enclave, New Delhi. In case the amount of Rs.59,00,000/- is not paid on or before 31.10.2012, then, from 1.11.2012 this amount of Rs.59,00,000/- will carry interest at 18% per annum simple, and the total amount then payable will be a charge in favour of M/s. Johar Towers Pvt. Ltd./appellant against the suit property.

2. The expenses of the stamp duty and the registration charges with respect to the sale deed will be borne by Sh.Daljeet Singh.

3. The amount which has to be paid by Sh.Daljeet Singh/respondent to M/s. Johar Towers Pvt. Ltd./appellant can be paid either directly to M/s. Johar Towers Pvt. Ltd./appellant or through their Advocate Sh. Vijay Kishan or the same can be deposited in

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