Application Seeking Recall Of Compromise Decree Can Be Filed Before The Court Which Granted It : Supreme Court

The Supreme Court observed that an application seeking recall of a compromise decree on the ground that it suffers from fraud and collusion can be filed before the the Court which granted the decree.

In this case, the plaintiffs filed an application under Order 23 Rule 3 read with Section 151 of the Code of Civil Procedure before the court which passed the Compromise Decree.  They contended that they had not executed any compromise nor appeared before the court in support thereof and that the Advocate appearing on their behalf has shown complete ignorance about the same and that the defendant has committed a fraud upon the plaintiffs. This application was dismissed by the Court.

Later, dismissing the petition filed by the plaintiffs, the Jammu and Kashmir High Court held that plaintiff could not seek recalling of compromise decree under the said provision and that the remedy is envisaged under Order 43 Rule 1-A.

The issue raised before the Apex Court was whether an aggrieved person against the compromise decree has a right to file an application before the Court which granted the decree ?

The court noted that this issue has been already answered in Banwari Lal V. Chando Devi (Smt.) (Through LRS.) & Anr. (1993) 1 SCC 581. It was held in the said judgment that a party challenging a compromise can file a petition under proviso to Rule 3 of Order 23, or an appeal under Section 96(1) of the Code, in which he can question the validity of the compromise in view of Rule 1-A of Order 43 of the Code.

"The appellants had thus the right to avail either the remedy of appeal in terms of Order 43 Rule 1A CPC or by way of an application before the court granting decree. Therefore, the application filed by the appellants before the Court which granted the decree cannot be said to be without jurisdiction.", the bench comprising Justices Hemant Gupta and V. Ramasubramanian observed while setting aside the High court judgment.

Case details

Vipan Aggarwal vs Raman Gandotra | 2022 LiveLaw (SC) 442 | CA 3492 OF 2022 | 29 April 2022

Coram: Justices Hemant Gupta and V. Ramasubramanian

Headnotes

Code of Civil Procedure, 1908 ; Order 23 Rule 3 and Order 43 Rule 1A - An aggrieved person against the compromise decree has a right to file an application before the Court which granted the decree - He has the right to avail either the remedy of appeal in terms of Order 43 Rule 1A CPC or by way of an application before the court granting decree [Referred to Banwari Lal V. Chando Devi (Smt.) (Through LRS.) & Anr.' (1993) 1 SCC 581] 

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