Kerala HC Allows Appeal, Sets Aside Lower Court Decree in Property Suit Based on Mediation Agreement Under Order 23 Rule 3 CPC - 2025-04-08

Kerala High Court Sets Aside Trial Court Decree, Allows Appeal Based on Mediation Settlement in Family Property Dispute

Ernakulam: The Kerala High Court, presided over by Hon'ble Mr. Justice A. Badharudeen , has allowed a Regular First Appeal (RFA No. 837 of 2015) and set aside the judgment and decree of the Sub Court, Chavakkad, following a successful mediation between the parties involved in a family property dispute. The court incorporated the mediation agreement reached under Order 23 Rule 3 of the Code of Civil Procedure (CPC) into its final decree.

Case Background

The appeal challenged the judgment and decree dated 20.07.2015 in O.S. No. 679 of 2013 passed by the Sub Court, Chavakkad. The original suit involved a property dispute between siblings Prakashan (Plaintiff/Respondent 1), Sasi (2nd Defendant/Respondent 2), and their brother Vinod (1st Defendant/Original Appellant).

During the pendency of the appeal, the sole appellant, Vinod , passed away. His legal heirs – wife Reshma Vinod and minor children Crishna Vinod and Ovinen Vinod (represented by their mother) – were subsequently impleaded as additional appellants (A2 to A4) by an order dated 30.01.2025.

Resolution through Mediation

Recognizing the nature of the dispute, the High Court referred the parties to mediation. The mediation process proved successful, resulting in a settlement agreement dated 22.03.2025. This agreement, signed by all parties and drafted in accordance with Order 23 Rule 3 of the CPC, outlined the terms for resolving the property dispute, including the division of the contested property detailed in an accompanying sketch.

High Court's Decision

Justice A. Badharudeen reviewed the mediation report and the settlement agreement submitted by the mediator. Finding the agreement to be legally sound and acceptable, the court formally accepted it.

In the judgment dated 8th April 2025, the High Court stated:

> "Since the mediation report found to be legal and acceptable, the same is accepted... accepting the mediation agreement, the decree and judgment under challenge stand interfered and set aside in terms of the mediation agreement."

The court explicitly ordered that the RFA stands allowed in terms of the mediation agreement . Crucially, the judgment mandates:

> "It is specifically made clear that the mediation agreement and the sketch appended thereto shall form part of the appellate decree."

Implications

This decision underscores the effectiveness of Alternative Dispute Resolution (ADR) mechanisms like mediation in resolving complex family property disputes, even at the appellate stage. By accepting the settlement and incorporating it into the decree, the High Court provided a final resolution based on the mutual consent of the parties, thereby setting aside the contested trial court judgment.

The court also directed the Registry to refund the admissible court fees paid by the appellants as per law and vacated all interlocutory orders, formally concluding the litigation based on the terms agreed upon by the family members.