Compromise of suit
Full Text
Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise in writing and signed by the parties or where the defendant satisfies the plaintiff in respect to the whole or any part of the subject-matter of the suit, the Court shall order such agreement, compromise or satisfaction to be recorded, and shall pass a decree in accordance therewith so far as it relates to the parties to the suit, whether or not the subject-matter of the agreement, compromise or satisfaction is the same as the subject-matter of the suit:
Provided that where it is alleged by one party and denied by the other that an adjustment or satisfaction has been arrived at, the Court shall decide the question; but no adjournment shall be granted for the purpose of deciding the question, unless the Court, for reasons to be recorded, thinks fit to grant such adjournment.
Explanation.—An agreement or compromise which is void or voidable under the Indian Contract Act, 1872 (9 of 1872), shall not be deemed to be lawful within the meaning of this rule.
Plain English Summary
Governs consent/compromise decrees: mandates that compromises must be in writing and signed by the parties, empowers the court to record compromises even encompassing matters beyond the original suit subject-matter, compels immediate trial of disputed settlements, and renders void/voidable agreements unlawful.
Key Legal Elements
- Mandatory Writing and Signatures: Must be in writing and signed by the parties (or authorized counsel).
- Lawful Agreement Requirement: Explanation bars agreements void under Contract Act (fraud, coercion, undue influence, unlawful object).
- Encompassing Outside Subject-Matter: Compromise decree can validly embrace property outside the original plaint schedule.
- Summary Trial of Disputed Compromise (Proviso): Court must promptly decide whether genuine adjustment occurred; adjournments curtailed.
- Mandatory Duty on Court: If lawful, court 'shall' record compromise and pass decree.
Practical Note
Drafting & Challenging Compromise Decrees: 1. Landmark Authorities - Pushpa Devi Bhagat v. Rajinder Singh (2006) 5 SCC 566, Banwari Lal v. Chando Devi (1993) 1 SCC 581 & Byram Pestonji Gariwala v. Union Bank of India (1992) 1 SCC 31: An advocate holding a valid Vakalatnama with express authorization to compromise can lawfully sign the compromise petition on behalf of the client. However, best practice is to obtain the physical signatures or thumb impressions of the parties themselves on every page. 2. Non-Suit Properties in Compromise: A compromise decree can include properties not involved in the original suit. Such a decree creates valid rights and does not require registration if it merely records existing rights among family members (Bhoop Singh v. Ram Singh Major (1995) 5 SCC 709). 3. When Compromise is Disputed: If one party repudiates the settlement before the decree is sealed, the court under the Proviso to Rule 3 must immediately hold an inquiry to determine if a lawful settlement was arrived at.
हिंदी पाठ
जहां न्यायालय के समाधानप्रद रूप में यह साबित हो जाता है कि कोई वाद लिखित और पक्षकारों द्वारा हस्ताक्षरित किसी विधिपूर्ण करार या समझौते (Lawful agreement or compromise in writing and signed by the parties) द्वारा पूर्णतः या भागतः समायोजित कर लिया गया है, अथवा जहां प्रतिवादी वाद की विषय-वस्तु के संपूर्ण या किसी भाग के संबंध में वादी की तुष्टि कर देता है, वहां न्यायालय ऐसे करार, समझौते या तुष्टि को अभिलिखित किए जाने का आदेश देगा, और जहां तक उसका संबंध वाद के पक्षकारों से है, उसके अनुसार डिक्री पारित करेगा (चाहे समझौते की विषय-वस्तु वाद की विषय-वस्तु के समान हो या न हो):
परंतु जहां एक पक्षकार द्वारा यह अभिकथन किया जाता है और दूसरे द्वारा इंकार किया जाता है कि कोई समझौता हुआ है, वहां न्यायालय उस प्रश्न का विनिश्चय करेगा; किंतु जब तक न्यायालय अभिलिखित किए जाने वाले कारणों से उचित न समझे, कोई स्थगन नहीं दिया जाएगा।
स्पष्टीकरण— ऐसा कोई करार या समझौता जो भारतीय संविदा अधिनियम, 1872 के अधीन शून्य (Void) या शून्यकरणीय (Voidable) है, इस नियम के अर्थ में विधिपूर्ण नहीं समझा जाएगा।