High Court of Karnataka Allows Revision Against Restoration of Possession in Execution Proceedings — Compromise Decree Set Aside Without Notice to Decree Holder Violates Natural Justice. Order XXI Rule 99 CPC Application Cannot Be Decided Without Hearing the Decree Holder.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
  • 87
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Smt. Leelavathi, filed a civil revision petition under Section 18 of the Karnataka Small Causes Courts Act, 1964, challenging an order dated 23.04.2021 passed by the XXI Additional Small Causes and ACMM Court, Bengaluru, in Ex.P.No.1315/2015. The impugned order allowed an application filed by the first respondent (objector) under Order XXI Rule 99 read with Section 151 CPC, directing restoration of possession of the execution schedule property to the objector and imposing costs of Rs.10,000/- on the petitioner. Additionally, the execution court set aside the compromise decree passed in S.C.No.314/2015 (the eviction suit) based on which the petitioner had initiated execution proceedings. The petitioner contended that the order was passed without issuing any notice to her, thereby violating principles of natural justice. The High Court observed that the execution court had set aside the compromise decree and ordered restoration of possession without affording the petitioner an opportunity of hearing. The court held that such an order, passed behind the back of the decree holder, could not be sustained. Consequently, the revision petition was allowed, the impugned order was set aside, and the matter was remitted back to the Small Causes Court for fresh consideration after issuing notice to all parties.

Headnote

A) Civil Procedure - Execution Proceedings - Order XXI Rule 99 CPC - Restoration of Possession - The Small Causes Court allowed an application under Order XXI Rule 99 CPC filed by an objector, setting aside a compromise decree and ordering restoration of possession, without issuing notice to the decree holder. The High Court held that such an order passed without notice to the affected party violates principles of natural justice and cannot be sustained. (Paras 1-3)

B) Civil Procedure - Compromise Decree - Setting Aside - Natural Justice - The execution court set aside a compromise decree passed in an eviction suit without affording an opportunity of hearing to the decree holder. The High Court held that a decree cannot be set aside behind the back of the decree holder, and the order was liable to be set aside. (Paras 2-3)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Small Causes Court could set aside a compromise decree and order restoration of possession in an application under Order XXI Rule 99 CPC without issuing notice to the decree holder.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The revision petition is allowed. The impugned order dated 23.04.2021 passed in Ex.P.No.1315/2015 by the XXI Additional Small Causes and ACMM Court, Bengaluru, is set aside. The matter is remitted back to the Small Causes Court for fresh consideration after issuing notice to all parties.

Law Points

  • Order XXI Rule 99 CPC
  • Section 18 Karnataka Small Causes Courts Act 1964
  • Natural Justice
  • Compromise Decree
  • Restoration of Possession
  • Setting Aside Decree Without Notice
Subscribe to unlock Law Points Subscribe Now

Case Details

2021 LawText (KAR) (08) 17

C.R.P.No.159/2021(SC)

2021-08-25

N.S.Sanjay Gowda

K.V.Narasimhan, K.N.Nitish, M.B.Raddi, Vidyashree

Smt. Leelavathi

Smt. C.S. Lalitha and Sri. Suresh

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil revision petition against an order allowing an application under Order XXI Rule 99 CPC for restoration of possession and setting aside a compromise decree.

Remedy Sought

The petitioner sought to set aside the order dated 23.04.2021 passed by the Small Causes Court in Ex.P.No.1315/2015.

Filing Reason

The Small Causes Court allowed the objector's application under Order XXI Rule 99 CPC without issuing notice to the petitioner, thereby violating natural justice.

Previous Decisions

The Small Causes Court had passed the impugned order on 23.04.2021 in Ex.P.No.1315/2015, allowing the objector's application and setting aside the compromise decree in S.C.No.314/2015.

Issues

Whether the Small Causes Court could set aside a compromise decree and order restoration of possession without issuing notice to the decree holder.

Submissions/Arguments

The petitioner argued that the impugned order was passed without any notice to her, violating principles of natural justice.

Ratio Decidendi

An order under Order XXI Rule 99 CPC setting aside a compromise decree and ordering restoration of possession cannot be passed without issuing notice to the decree holder, as it violates principles of natural justice.

Judgment Excerpts

This revision has been preferred against an order passed by the Small Causes Court allowing an application filed under Order XXI Rule 99 CPC by the objector/1st respondent herein thereby ordering restoration of possession... By the same order, a compromise decree passed in the eviction suit filed by the petitioner based on which the execution had been filed by the petitioner herein, has also been set aside.

Procedural History

The petitioner obtained a compromise decree in S.C.No.314/2015 and filed execution proceedings in Ex.P.No.1315/2015. The first respondent filed an application under Order XXI Rule 99 CPC seeking restoration of possession. The Small Causes Court allowed the application and set aside the compromise decree on 23.04.2021. The petitioner filed the present revision petition under Section 18 of the Karnataka Small Causes Courts Act, 1964.

Acts & Sections

  • Karnataka Small Causes Courts Act, 1964: Section 18
  • Code of Civil Procedure, 1908 (CPC): Order XXI Rule 99, Section 151
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court High Court of Karnataka Allows Revision Against Restoration of Possession in Execution Proceedings — Compromise Decree Set Aside Without Notice to Decree Holder Violates Natural Justice. Order XXI Rule 99 CPC Application Cannot Be Decided Without H...
Related Judgement
Supreme Court Supreme Court Allows Exemption from Personal Appearance for Accused Director in CBI Case Due to Business Hardship. Section 205 CrPC Discretion Exercised to Balance Trial Progress and Accused's Convenience.