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Checking relevance for Pushpa Devi Bhagat (D) Th. LR. Sadhna Rai VS Rajinder Singh...

2006 5 Supreme 403 : Yes, a compromise between the plaintiff and two out of seven defendants can be recorded under Order 23, Rule 3 of the Civil Procedure Code, 1908, provided the compromise is in writing and signed by the parties or their duly authorized representatives. The court may record such a compromise if it is satisfied that the suit has been adjusted either wholly or in part by the compromise, and that the terms are lawful. The expression ''''in writing and signed by parties'''' includes statements made by counsel or pleaders duly authorized by the parties, as evidenced by a vakalatnama, and recorded by the court on oath and signed by the parties or their authorized representatives. In this case, the compromise was made by counsel for the plaintiff and the two defendants, who were duly authorized, and their statements were recorded by the court and signed, thereby satisfying the requirements of Rule 3 of Order 23 CPC.Checking relevance for Ajad Singh @ Ajad VS Chatra...

Checking relevance for TRILOKI NATH SINGH VS ANIRUDH SINGH(D) THR. LRS...

2020 0 Supreme(SC) 366 : Yes, a compromise between the plaintiff and two defendants out of seven defendants can be recorded under Order 23 Rule 3 of the Civil Procedure Code, 1908, provided the compromise is lawful, in writing, and signed by the parties involved. The rule permits recording of a compromise that adjusts the suit wholly or in part, even if only some of the parties are involved, as long as the agreement is lawful and satisfies the court''''s satisfaction. The court may record such a compromise and pass a decree in accordance with it, even if the subject-matter of the compromise differs from the original suit. However, the compromise must not be void or voidable under the Indian Contract Act, 1872. The validity of the compromise is determined by the court before whom the matter is raised, and no suit can be filed to set aside the decree on the ground that the compromise was not lawful, as per Rule 3A of Order 23 CPC.Checking relevance for Sree Surya Developers and Promoters VS N. Sailesh Prasad...

2022 3 Supreme 1 : Yes, a compromise between the plaintiff and two defendants out of seven defendants can be recorded under Order 23 Rule 3 of the Civil Procedure Code, 1908, provided the compromise is lawful, in writing, and signed by the parties involved. The court has the power to record such a compromise if it is satisfied that there is a valid agreement between the parties. However, the validity of the compromise must be determined by the court recording it, and the compromise must not be void or voidable under the Indian Contract Act, 1872. The court must examine whether the compromise is lawful, and if it is found to be void or voidable, it cannot be recorded. Importantly, no independent suit can be filed to set aside a compromise decree on the ground that the compromise was not lawful, as per Order 23 Rule 3-A CPC. The only remedy available is to file an application before the same court that recorded the compromise, under the proviso to Rule 3 of Order 23, to challenge the validity of the compromise.Checking relevance for R. JANAKIAMMAL VS S. K. KUMARASAMY(DECEASED) THROUGH LEGAL REPRESENTATIVES...

Checking relevance for Trinity Infraventures Ltd. VS M. S. Murthy...

2023 0 Supreme(SC) 585 : The legal document confirms that under Order XXIII Rule 3 of the Civil Procedure Code, 1908, a compromise between some of the parties (specifically, plaintiff Nos. 1 and 2 and certain defendants) can be recorded, and a preliminary decree can be passed based on that compromise. It explicitly states that the parties who entered into the compromise filed an application under Order XXIII Rule 3 for recording the compromise and for passing a preliminary decree, involving only some of the defendants and the plaintiff(s). Therefore, the recordation of a compromise involving the plaintiff and 2 out of 7 defendants is permissible under Order 23 Rule 3.Checking relevance for Subramanian vs R.Sivakumar...

2024 0 Supreme(Mad) 2579 : Under Order 23 Rule 3 of the Civil Procedure Code, 1908, a decree can be passed in respect of part of the subject matter of the suit on a compromise without waiting for the determination of other questions. The plaintiff has the prerogative to enter into a compromise with some defendants (even if only two out of seven) and to seek exoneration of those defendants. The court may record such a compromise and exonerate the defendants involved, provided the compromise is genuine and not collusive. However, in partition suits, the court must ensure that all co-owners remain parties to the suit to facilitate comprehensive adjudication of rights and claims. While the plaintiff''''s right to compromise with certain defendants is recognized, the court may set aside exoneration if it undermines the legal integrity of the suit or if there is evidence of collusion, as seen in the case where exoneration of defendants 12 to 16 was reversed due to lack of judicial rationale and contested claims.


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  • Order 23 Rule 3 - Recording of Compromise: This rule allows courts to record a compromise wholly or partially if parties agree in writing and it pertains to the subject matter of the suit. The compromise can be recorded even if only part of the suit is settled, provided the court is satisfied with the agreement. The recorded compromise can lead to a decree, and such decrees are binding unless challenged under specific provisions. Partial compromises involving some defendants and claims are permissible, and the court can record such agreements without affecting unresolved issues. ["2025 Supreme(Online)(Mad) 34352"]

  • Partial Settlement Validity: Courts have recognized that compromises involving only some parties or claims are valid and can be recorded under Order 23 Rule 3. For instance, when a plaintiff and certain defendants settle their disputes, the court can record this partial compromise, leaving other parts of the suit open for adjudication. Such compromises do not necessarily involve all defendants or claims. ["2025 Supreme(Online)(Mad) 34352"]

  • Bar on Challenging Compromise Decree (Order 23 Rule 3-A): This rule bars suits challenging the legality of a compromise or the decree based on it, once recorded by the court. It aims to prevent relitigation of settled matters and emphasizes that only the court which recorded the compromise can modify or set aside it. However, if the compromise is unlawful or obtained through fraud, the court retains the power to reject or set aside the compromise. ["2025 Supreme(Online)(Kar) 33146"], ["2025 Supreme(Online)(Del) 3287"]

  • Legal Precedents: The Supreme Court and High Courts have upheld that compromises can be recorded for part of the suit, and such compromises are binding unless challenged under the prescribed procedures. Cases like Chando Devi (1993) and Banwari Lal clarify that challenges to the validity of compromises are limited and primarily scrutinized when unlawful or obtained improperly. ["

    INDHC_UPHC011592582008

    "], ["2025 Supreme(Online)(Kar) 33146"]
  • Implications for Plaintiff and 2 Defendants: If a plaintiff and two defendants out of seven settle and enter into a lawful written agreement signed by all parties involved in those claims, the court can record this compromise under Order 23 Rule 3. The recorded compromise can result in a decree regarding those specific claims, and the remaining claims can be adjudicated separately. Challenges to such partial compromises are barred under Rule 3-A unless the compromise is unlawful. ["2025 Supreme(Online)(Mad) 34352"], ["2025 Supreme(Online)(Kar) 30782"]

Analysis and Conclusion

Yes, a compromise involving the plaintiff and two defendants out of seven can be recorded under Order 23 Rule 3, provided it is lawful, in writing, signed by the parties, and pertains to specific claims or issues. The court has the authority to record such partial compromises, which are binding and can lead to a decree concerning those parties. Challenges to the validity of such compromises are generally barred by Order 23 Rule 3-A, unless the compromise is unlawful or obtained through fraud. Therefore, partial settlements between some parties are permissible and can be recorded, streamlining the resolution process while leaving unresolved claims to be decided separately.


References:- 2025 Supreme(Online)(Mad) 34352-

SMT. RAMWATI Vs SMT. SHAKUNTALA

- 2025 Supreme(Online)(Kar) 33146- INDEL00000145846- INKAR00000119152- INKAR00000159921- INKAR00000088542- INKAR00000061795
Can Partial Compromise With Some Defendants Be Recorded Under Order 23 Rule 3 CPC?

Partial Compromise with Some Defendants: Can It Be Recorded Under Order 23 Rule 3?

In civil litigation, parties often seek amicable resolutions to avoid prolonged court battles. But what happens when a plaintiff reaches a settlement with only some defendants out of many? Specifically, can a compromise between a plaintiff and 2 defendants out of 7 be recorded under Order 23 Rule 3 of the Civil Procedure Code (CPC)? This question arises frequently in multi-party suits, and understanding the legal framework is crucial for litigants, lawyers, and courts.

This article breaks down the provisions of Order 23 Rule 3, examines the validity of partial compromises, and draws insights from judicial precedents. While this provides general guidance, it is not a substitute for professional legal advice tailored to your situation.

What is Order 23 Rule 3 of the CPC?

Order 23 Rule 3 CPC governs the compromise of suits. It empowers courts to record lawful compromises and pass decrees in accordance therewith. The rule states that where a suit is compromised wholly or in part, and the compromise is lawful, the court shall record it and proceed to pass a decree 2006 5 Supreme 403.

Key requirements for recording a compromise include:- It must be in writing and signed by the parties or their duly authorized representatives 2006 5 Supreme 403.- The term parties extends to attorneys or pleaders with proper authorization 2006 5 Supreme 403.- Statements recorded by the court and signed by parties or counsel qualify as a valid written compromise 2006 5 Supreme 403.- The court must be satisfied of its lawfulness and genuineness 2006 5 Supreme 403.

Validity of Partial Compromises Involving Select Defendants

A common concern is whether compromises can be partial, affecting only some parties. The answer is yes—provided the conditions are met. A compromise between the plaintiff and a few defendants out of many can be recorded under Order 23 Rule 3, leading to a preliminary or final decree on those terms 2023 0 Supreme(SC) 585.

For instance, in scenarios with multiple defendants, a settlement with 2 out of 7 does not invalidate the process for those parties. The court may decree in favor of the compromising defendants while the suit continues against others 2023 0 Supreme(SC) 585. This promotes efficiency and aligns with the CPC's objective to encourage settlements.

Judicial precedents reinforce this. In one case, compromises among specific defendants (e.g., Defendants No.1, 22, and 23) were considered under Order 23 Rule 3, highlighting that partial settlements are permissible

G K GANESH vs G T KRISHNA REDDY

. Similarly, courts have upheld applications under Order 23 Rule 1 read with Section 151 CPC where parties in multiple suits entered lawful compromises, leading to decrees 2025 Supreme(Online)(HP) 4989.

Essential Requirements for a Valid Compromise

To ensure recordability, parties must adhere to strict formalities:

1. Written and Signed Document

The compromise must be documented in writing. Oral agreements suffice only if reduced to writing by the court and signed 2006 5 Supreme 403.

2. Authorization of Representatives

Counsel or agents need explicit authority, such as via vakalatnama empowering compromises. Courts verify this before acceptance 2006 5 Supreme 403.

3. Court's Satisfaction on Lawfulness

The court examines if the compromise is voluntary, free from fraud, and not opposed to law. If unlawful, it rejects the application 2006 5 Supreme 403 2022 Supreme(Online)(Kar) 33916. As noted, If in its view, it is not lawful it shall reject the compromise. Such a power is conferred on the Court under Order 23 Rule 3 of the Code 2022 Supreme(Online)(Kar) 33916.

Role of the Court in Recording Compromises

The court's oversight is pivotal. Upon application, it records the compromise if satisfied, passing a decree that binds the parties 2006 5 Supreme 403. This decree achieves finality—challenges via separate suits are barred under Order 23 Rule 3A 2020 0 Supreme(SC) 366.

In multi-defendant cases, the court ensures the partial compromise does not prejudice non-compromising parties. For example, in a suit with objections absent, compromises lead to dismissals or decrees as per terms 2025 Supreme(Online)(HP) 4989. The parties to both Civil Suits No. 40 of 2006 and 66 of 2014 entered into lawful compromises, recorded and duly signed - The suits are decreed in terms of the compromise applications 2025 Supreme(Online)(HP) 4989.

Exceptions and Limitations

Not all compromises qualify:- Void or Voidable Agreements: Those unlawful under the Indian Contract Act cannot be recorded 2006 5 Supreme 403.- Fraud or Coercion: Courts scrutinize for illegality during recording, preventing later collateral attacks 2020 0 Supreme(SC) 366.- Challenges Post-Recording: Order 23 Rule 3A prohibits suits questioning recorded compromises, curbing multiplicity of litigation 2020 0 Supreme(SC) 366 2024 Supreme(Online)(Kar) 40404. The learned counsel for the petitioners-defendants No. 2 to 4 argues that the suit challenging the compromise decree is not maintainable as stated under Order 23 Rule 3-A of CPC 2024 Supreme(Online)(Kar) 40404.

Courts also check compliance with guardian-related rules in minor-involved suits

SMT. RAMWATI Vs SMT. SHAKUNTALA

.

Practical Recommendations for Parties

To successfully record a partial compromise:- Document Thoroughly: Draft written terms, signed by parties or authorized counsel.- Secure Authorization: Use vakalatnamas explicitly allowing compromises.- File Promptly: Approach the court via application under Order 23 Rule 3.- Seek Verification: Ensure voluntariness to satisfy the court.

In multi-party disputes, communicate with all defendants to avoid disputes, though non-signatories aren't bound.

Insights from Case Law

  • Partial settlements among select defendants have been entertained, as in applications under Order 23 Rule 3 where matters were amicably settled amongst Defendants No.1, 22 and 23 only

    G K GANESH vs G T KRISHNA REDDY

    .
  • Courts mandate acceptance only for lawful compromises, rejecting others outright 2022 Supreme(Online)(Kar) 33916.
  • Post-decree challenges face barriers, emphasizing the recording stage's importance

    SANJAY KUMAR KESHRI AND ANOTHER vs BASANTLAL KESHRI

    . Order XXIII, Rule 3 provides for compromise of suit... Rule 3 uses the expression 'lawful agreement or compromise'

    SANJAY KUMAR KESHRI AND ANOTHER vs BASANTLAL KESHRI

    .

Conclusion and Key Takeaways

Yes, generally, a compromise between a plaintiff and 2 out of 7 defendants can be recorded under Order 23 Rule 3 CPC, if lawful, written, signed, and court-verified 2006 5 Supreme 403 2023 0 Supreme(SC) 585. This facilitates partial resolutions in complex suits.

Key Takeaways:- Partial compromises are valid and recordable.- Prioritize writing, signatures, and authorization.- Court's satisfaction is non-negotiable.- Post-recording finality limits challenges.

Consult a legal expert for case-specific advice. Staying informed empowers better litigation strategies.

References:- 2006 5 Supreme 403: Core principles on writing, signatures, and court satisfaction.- 2023 0 Supreme(SC) 585: Partial compromises and court role.- 2020 0 Supreme(SC) 366: Bar on challenging recorded compromises.- Additional cases:

SMT. RAMWATI Vs SMT. SHAKUNTALA

, 2025 Supreme(Online)(HP) 4989,

G K GANESH vs G T KRISHNA REDDY

, 2022 Supreme(Online)(Kar) 33916, 2024 Supreme(Online)(Kar) 40404,

SANJAY KUMAR KESHRI AND ANOTHER vs BASANTLAL KESHRI

. #Order23Rule3, #CPCCompromise, #PartialSettlement
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