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2021 Supreme(Online)(Guj) 2545

HIGH COURT OF GUJARAT
VIPUL M. PANCHOLI, J
LAVARIYA DEVRAJBHAI DEVRAJ RAYJIBHAI – Appellant
Versus
CHARITY COMMISSIONER – Respondent
R/CIVIL REVISION APPLICATION NO. 228 of 2021 | R/CIVIL REVISION APPLICATION NO. 236 of 2021 | R/CIVIL REVISION APPLICATION NO. 237 of 2021 | R/CIVIL REVISION APPLICATION NO. 238 of 2021 | R/CIVIL REVISION APPLICATION NO. 239 of 2021 | R/CIVIL REVISION APPLICATION NO. 240 of 2021 | R/CIVIL REVISION APPLICATION NO. 241 of 2021 | R/CIVIL REVISION APPLICATION NO. 242 of 2021 | R/CIVIL REVISION APPLICATION NO. 243 of 2021 | R/CIVIL REVISION APPLICATION NO. 244 of 2021 | R/CIVIL REVISION APPLICATION NO. 245 of 2021 | R/CIVIL REVISION APPLICATION NO. 246 of 2021 | R/CIVIL REVISION APPLICATION NO. 247 of 2021 | R/CIVIL REVISION APPLICATION NO. 248 of 2021 | R/CIVIL REVISION APPLICATION NO. 249 of 2021 | R/CIVIL REVISION APPLICATION NO. 250 of 2021 | R/CIVIL REVISION APPLICATION NO. 251 of 2021 | R/CIVIL REVISION APPLICATION NO. 252 of 2021 | R/CIVIL REVISION APPLICATION NO. 253 of 2021 | R/CIVIL REVISION APPLICATION NO. 254 of 2021 | R/CIVIL REVISION APPLICATION NO. 255 of 2021 | R/CIVIL REVISION APPLICATION NO. 256 of 2021 | R/CIVIL REVISION APPLICATION NO. 257 of 2021 | R/CIVIL REVISION APPLICATION NO. 258 of 2021 | R/CIVIL REVISION APPLICATION NO. 259 of 2021 | R/CIVIL REVISION APPLICATION NO. 260 of 2021 | R/CIVIL REVISION APPLICATION NO. 261 of 2021 | R/CIVIL REVISION APPLICATION NO. 262 of 2021



Advocates:
For the Appellants/Petitioners: MR PUSHPADATTA VYAS
For the Respondents: MS JYOTI BHATT, AGP, MR SACHIN D VASAVADA, MR SD MOTWANI

Consent decrees cannot be challenged by a non-party through a separate suit, relying only on prescribed appeal or review procedures.

Headnote:(A) CPC - Section 115 - Order 7, Rule 11 - Consent decree - Suit filed to challenge consent decree by a non-party not maintainable - Law precludes a separate suit to challenge consent decree unless as per established procedure - Consent decrees can only be questioned via appeal or review by a party, thus an application to reject plaint under Rule 11 is valid. (Paras 9-14)

(B) Fraud in Consent Decree - Observations regarding the necessity of parties and remedy available under law in case decree obtained by fraud, emphasizing necessity for formal challenges through appeal or review. (Paras 6-13)

Facts of the case:
The applicant filed a civil suit against multiple respondents, resulting in a consent decree. The Charity Commissioner filed a subsequent suit claiming the decree was fraudulent despite not being a party to the original suit, prompting the applicant to seek dismissal under rule 11.

Findings of Court:
The court found no maintainability for the suit challenging the consent decree due to Order 23, Rule 3A, allowing the applicant's application and quashing the dismissal by the trial court.

Issues: Whether the Charity Commissioner's suit to challenge the consent decree was maintainable being a non-party involved in the consent.

Ratio Decidendi: The court held that any challenge to a consent decree must follow appeal or review protocols, noting that consent decrees protect against unwarranted litigation.

Result: All Civil Revision Applications allowed; the orders passed by the trial court are quashed and the respondent's plaints are rejected, reserving their right to appeal.

Table of Content
1. request for common judgment for similar issues. (Para 1 , 2 , 3)
2. background of the consent decree and subsequent suit. (Para 4)
3. arguments regarding maintainability and fraud in consent. (Para 5 , 6)
4. observations and interpretation of relevant laws. (Para 8 , 9 , 10 , 11 , 12)
5. court's finding on jurisdiction concerning consent decree. (Para 13)
6. final ruling on quashing trial court's decision. (Para 14)

JUDGEMENT

1. Learned advocates appearing for the parties have jointly requested that as the issue involved in these applications is similar, all these applications be finally disposed of at an admission stage. Therefore, all these applications are heard together and are being decided by this common judgment.

2. Rule. Learned AGP Ms. Jyoti Bhatt for respondent no.1, learned advocate, Mr. Sachin Vasavada for respondent nos.2 to 6 and learned advocate, Mr. S.D. Motwani for respondent no.7 waive service of notice of Rule.

3. All these Civil Revision Applications are filed under Section 115 of the Code of Civil Procedure, 1908 (hereinafter referred to as “the Code”) by the applicant challenging the order passed by the concerned trial court, whereby the application filed by the applicant under Order 7, Rule 11 of the Code has been rejected.

4. For the sake of convenience, facts as stated in Civil Revision Application No.228/2021 are considered, which are as under,

4.1 The present applicant had filed Regular Civil Suit No.61/2016 before the concerned trial court against the respondent nos.2 to 6, however during the pendency of the said proceeding, compromise was arrived at between the parties and, therefore on the basis of the said compromise, consent decree dated 07.10.2016 was passed by the concerned trial court.

4.2 Thereafter, the present respondent no.1 i.e. the Charity Commissioner, Gujarat State, who was not party to the said proceeding, came to know about the consent decree passed by the concerned Court on 07.10.2016, he filed separate Regular Civil Suit No.71/2020 against the present applicant and the respondent nos.2 to 7. In the said plaint, the respondent no.1 herein has challenged the consent decree dated 07.10.2016 passed by the concerned trial court in Regular Civil Suit No.61/2016 on various grounds.

4.3 After filing of the said suit by the respondent no.1, the present applicant filed an application under Order 7, Rule 11 of the Code on the ground that the suit filed by the respondent no.1 is barred by law. In support of the said contention, the applicant has placed reliance upon the Order 23, Rule 3A of the Code.

4.4 The trial court, vide impugned order dated 12.07.2021, rejected the application, Exh.31 filed by the applicant and, therefore, the applicant has filed the present Revision Application.

5. Learned advocate, Mr. Vyas appearing for the applicant has mainly contended that the suit filed by the respondent no.1 challenging the consent decree dated 07.10.2016 is not maintainable in view of the provision contained in Order 23, Rule 3A of the Code. Learned advocate has submitted that the issue involved in the present matter is squarely covered by the decision rendered by the Full Bench of this Court in case of Sakina Sultanali Sunesara (Momin) Vs. Shia Imami Ismaili Momin Jamat Samaj, reported in 2020 (1) GLR 586 .

Learned advocate has mainly relied upon the observations made in Paragraph No.40 of the said decision. Learned advocate has, therefore, urged that the impugned order passed by the trial court rejecting the application filed under Order 7, Rule 11 of the Code be quashed and set aside and thereby the plaint of the respondent no.1 – plaintiff be rejected.

6. On the other hand, learned AGP Ms. Bhatt appearing for the respondent no.1 – original plaintiff of Regular Civil Suit No.71/2020 has opposed these applications. It is submitted that the consent decr


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