Case Note & Summary
The dispute arose from a suit filed by the respondent for recovery of a sum from the husband of the first appellant, which was decreed. In execution, the property was sold, and the appellants, as legal representatives, sought to set aside the sale under Order XXI, Rule 90 of the Code of Civil Procedure, 1908 (CPC). The executing court dismissed their application, but the sale was later set aside on appeal. During a second appeal, the parties entered into a compromise allowing the appellants to deposit Rs. 60,000 by a stipulated date. The appellants failed to deposit the amount and sought an extension of time, which the High Court denied, citing that the court could not extend time stipulated by the parties. The appellants contended that the court had the authority to extend time under Section 148 of the CPC. The Supreme Court allowed the appeal, stating that the time stipulated in the compromise became the time allowed by the court, thus granting it jurisdiction to extend time in appropriate cases. The court emphasized that while time would not be extended lightly, it could be done to prevent manifest injustice. The High Court's dismissal was deemed erroneous, and the case was remanded for fresh consideration (Paras 472 B-F).
Headnote
A) Civil Procedure - Compromise Agreements - Authority to Extend Time - Code of Civil Procedure, 1908, Order XXI, Rule 90 - The court held that the time stipulated in a compromise agreement became the time allowed by the court, thus granting jurisdiction to extend time in appropriate cases. The High Court erred in believing it had no power to extend time, as the absence of statutory compulsion allowed for judicial discretion to prevent manifest injustice (Paras 472 B-F).
Issue of Consideration
Whether the High Court had the authority to extend the time for depositing money as per the compromise agreement.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the High Court to dispose of the application for extension of time in accordance with law, with parties bearing their own costs.
Law Points
- Jurisdiction to extend time
- compromise agreements
- statutory compulsion
- Order XXI Rule 90
- Code of Civil Procedure
- 1908
