AND

DECREE

DATED

19.04.2006 PASSED IN OS NO.278/2000 ON THE FILE OF THE I

ADDL.CIVIL

JUDGE

(SR.DN),

GULBARGA.TRIAL

COURT

DISMISSED THE SUIT.APPELLATE COURT ALLOWED THE

APPEAL SUIT FOR,DECLARATION AND INJUNCTION.

IN RSA NO.7209/2009

KARNATAKA STATE FINANCE CORPORATION,

GULBARGA

THROUGH ITS GEN. MANAGER,

OPP TOKBN COMPLEX,

GULBARGA

(BY SRI. GANESH NAIK, ADVOCATE)

S/O GURUPADAPPA

OCC: RETD. GOVT. SERVANT.

R/O MAHAGAON,

TQ. GULBARGA

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TQ AND DIST. GULBARGA

SHIVALEELA

W/O LINGARAJ

TQ AND DIST. GULBARGA

(BY SRI. BASAVARAJ KAREDDY ADVOCATE)

AGAINST THE JUDGEMENT AND DECREE DTD 1.7.2009

PASSED IN R.A.NO 59/2006 ON THE FILE OF THE PRINCIPAL

DISTRICT JUDGE, GULBARGA,ALLOWING THE APPEAL AND

SETTING ASIDE THE JUDGEMENT AND DECREE DT 19.4.2006

PASSED IN O.S.NO.278/2000 ON THE FILE OF I ADDL. CIVIL

JUDGE (SR.DN), GULBARGA.

THESE APPEALS, COMING ON FOR FINAL HEARING, THIS

DAY, THE COURT DELIVERED THE FOLLOWING:

JUDGMENT

The parties have entered into a compromise and they

have also filed a compromise petition recording the terms

of the compromise.

Narendra, the 1^st respondent in RSA No.7214 of 2009

and in RSA No.7209 of 2009 instituted the suit for

declaration and of title and for injunction against

Shivaleela (the appellant in RSA No.7214 of 2009), his

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brother Subhash and the Karnataka State Finance

Corporation (for short ‘KSFC’). His suit was based on a

sale deed executed by his brother Subhash.

Shivaleela, contended that the suit property was

purchased by her in a public auction conducted by KSFC of

the property that had been mortgaged to it by Subhash for

availing a loan, which had been defaulted upon.

4.

The suit filed by Narendra was dismissed. However,

in appeal, the suit was decreed and he was held to be the

owner of the suit property. Hence, second appeals have

been filed by Shivaleela (RSA No.7214 of 2009) and also

by KSFC (RSA No.7209 of 2009).

5.

In these second appeals, a compromise is entered

into between Smt.Shivaleela (the 1^st defendant and

appellant in RSA No.7214 of 2009 and respondent No.3 in

RSA No.7209 of 2009) and Sri Narendra (the plaintiff and

the 1^st respondent in both the appeals). Shivaleela, the

purchaser in the auction conducted by KSFC and

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Narendra, the purchaser of land from Subhash who had

mortgaged the property are the only contesting parties.

6.

Sri Subhash - respondent No.2 in both the appeals,

who had sold the property to Narendra has no subsisting

interest in the property and he was in fact was placed

exparte. Similarly, KSFC (respondent No.3 in RSA No.7214

of 2009 and appellant in RSA No.7209 of 2009) also has

no subsisting interest in the property as it has admittedly

sold the property in favour of Smt. Shivaleela. Hence, their

acceptance of the compromise would not be necessary.

7.

Smt.Shivaleela and Sri Narendra are present before

this Court and they are identified by their respective

counsel. They state that they have settled the dispute on

their own free volition and without there being any undue

influence cast on them from any side and they also stated

that they would abide by the terms of the settlement and

the appeals may be disposed of in terms of the

compromise

petition.

In

the

circumstances,

the

compromise petition, under which they have basically

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agreed to share the suit property, which is signed by

Smt.Shivaleela and Sri Narendra and their respective

counsel, is taken on record.

8.

The compromise petition reads as under:

“COMPROMISE PETITION UNDER ORDER 23 RULE 1 AND 2

OF CPC ON BEHALF OF APPELLANT & RESPONDENT No. 1 of

R.S.A No.7214/2009

The parties to the appeal beg to submit as under:

1. The is respondent Narendra had filed suit bearing O.S.

No. 278/2000, for declaration of his title and injunction

etc., against appellant Smt. Shivaleela, 3^rd respondent

KSFC, and 2^nd respondent Subash in respect of an

extent of 20 guntas of land i.e., 100 feet (North South)

X 210 feet (East West) in Sy No. 115 of Mahagaon

village havi