High Court of Karnataka Quashes Compromise Decree in Civil Suit Due to Fraud and Non-Compliance with Order XXIII Rule 3 CPC — Suit Restored for Hearing on Merits. The court held that a compromise decree obtained without a written and signed compromise and without the court recording satisfaction about its lawfulness is illegal and liable to be set aside under Order XXIII Rule 3 of the Code of Civil Procedure, 1908.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
  • 5
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Kasturevva, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Dharwad Bench, seeking to quash the compromise judgment and decree dated 28.02.2006 and 06.03.2006 passed by the Civil Judge (Jr.Dn.), Ramdurga, in O.S. No.81/2004, and to restore the suit for hearing on merits. The petitioner was the plaintiff in the original suit, which she had filed for declaration and permanent injunction against the respondent, her daughter-in-law, concerning land bearing Sy.No.250/1 measuring 4 acres 7 guntas situated at Mallur village, Kagadhal Taluk, Saundatti. The petitioner contended that the suit property was owned by her deceased son, Basavaraddi, who had received it by gift deed, and after his death, she was in possession. The respondent, who had married Basavaraddi but later separated, allegedly obtained a compromise decree fraudulently through her cousin brother, who was the petitioner's son-in-law. The High Court, after hearing the petitioner's counsel, found that the compromise decree was not in accordance with law. The court noted that the compromise was not in writing and signed by the parties, and the trial court did not record its satisfaction that the compromise was lawful, as required under Order XXIII Rule 3 of the Code of Civil Procedure, 1908. Consequently, the High Court allowed the writ petition, quashed the impugned compromise decree, and restored the suit to its original number for hearing on merits.

Headnote

A) Civil Procedure - Compromise Decree - Fraud - Order XXIII Rule 3 CPC - The petitioner challenged a compromise decree alleging fraud by the defendant's son-in-law. The High Court held that the compromise decree was not in accordance with law as the compromise was not in writing and signed by the parties, and the court did not record satisfaction about the lawful agreement. The decree was quashed and the suit restored. (Paras 1-6)

B) Civil Procedure - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - Maintainability - The High Court entertained a writ petition against a compromise decree passed by the Civil Judge (Jr.Dn.), Ramdurga, under Articles 226 and 227 of the Constitution of India, holding that the impugned decree was illegal and improper. (Paras 1-6)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the compromise judgment and decree passed by the trial court in O.S. No.81/2004 is liable to be quashed on the ground of fraud and non-compliance with Order XXIII Rule 3 of the Code of Civil Procedure, 1908.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The writ petition is allowed. The impugned compromise judgment and decree dated 28.02.2006 and 06.03.2006 passed by the Civil Judge (Jr.Dn.), Ramdurga, in O.S. No.81/2004 are quashed. The suit is restored to its original number for hearing on merits.

Law Points

  • Compromise decree can be set aside if obtained by fraud
  • Compromise must be in writing and signed by parties
  • Court must record satisfaction about lawful agreement
  • Writ petition under Articles 226 and 227 maintainable against compromise decree
  • Order XXIII Rule 3 CPC mandatory requirements
Subscribe to unlock Law Points Subscribe Now

Case Details

2015 LawText (KAR) (06) 50

W.P. No.109988/2014 (GM-CPC)

2015-06-09

B. Veerappa

Sri. B V Somapur

Kasturevva W/o Hemappa Basureddy

Smt. Jayashree W/o Late Basavareddy Basureddy (now after her remarriage her name is Smt. Jayashree W/o Basavareddy Devaraddy)

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

Nature of Litigation

Civil writ petition challenging a compromise decree passed in a suit for declaration and permanent injunction.

Remedy Sought

Quashing of compromise judgment and decree dated 28.02.2006 and 06.03.2006 in O.S. No.81/2004 and restoration of the suit for hearing on merits.

Filing Reason

The petitioner alleged that the compromise decree was obtained by fraud by the defendant's son-in-law, who was the cousin brother of the respondent, and that the decree was improper and illegal.

Previous Decisions

The trial court (Civil Judge (Jr.Dn.), Ramdurga) passed a compromise judgment and decree on 28.02.2006 and 06.03.2006 in O.S. No.81/2004.

Issues

Whether the compromise decree was obtained by fraud? Whether the compromise decree complied with Order XXIII Rule 3 CPC?

Submissions/Arguments

The petitioner argued that the compromise decree was improper and illegal, and was obtained by fraud by the defendant's son-in-law. The respondent did not appear or contest the writ petition.

Ratio Decidendi

A compromise decree must be in writing and signed by the parties, and the court must record its satisfaction that the compromise is lawful. Non-compliance with Order XXIII Rule 3 CPC renders the decree illegal and liable to be set aside.

Judgment Excerpts

The petitioner/plaintiff has filed the above writ petition for quashing of the impugned compromise judgment and decree decree dated 28.02.2006 and 6.3.2006 made in O.S. No.81/2004 on the file of Civil Judge (Jr.Dn.), Ramdurga, and for restoration of the suit on its file mainly on the ground that the impugned compromise judgment and decree of the Court below is improper and illegal and the said compromise decree obtained by the defendant is a fraudulent act committed by son-in-law of the petitioner, who is the cousin brother of respondent. The impugned compromise judgment and decree passed by the trial Court is not in accordance with law. The compromise is not in writing and signed by the parties. The Court below has not recorded its satisfaction that the compromise is lawful. Therefore, the impugned compromise judgment and decree is liable to be quashed.

Procedural History

The petitioner filed a suit for declaration and permanent injunction (O.S. No.81/2004) before the Civil Judge (Jr.Dn.), Ramdurga. The trial court passed a compromise judgment and decree on 28.02.2006 and 06.03.2006. The petitioner then filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka, Dharwad Bench, challenging the compromise decree.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXIII Rule 3
  • Constitution of India: Articles 226, 227
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Appeals Against High Court Order Quashing Proceedings in Murder Conspiracy Case — Prima Facie Case of Fabricated Alibi Established. Police Officers Allegedly Created Bogus Excise Case to Shield Murder Accused, High Court Erred ...
Related Judgement
High Court High Court of Karnataka Quashes Compromise Decree in Civil Suit Due to Fraud and Non-Compliance with Order XXIII Rule 3 CPC — Suit Restored for Hearing on Merits. The court held that a compromise decree obtained without a written and signed comprom...