{"id":229181,"date":"2020-05-07T13:32:30","date_gmt":"2020-05-07T08:02:30","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=229181"},"modified":"2020-05-15T10:16:18","modified_gmt":"2020-05-15T04:46:18","slug":"bar-under-order-23-rule-3a-cpc-to-challenge-compromise-decree-extends-to-strangers-as-well","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/05\/07\/bar-under-order-23-rule-3a-cpc-to-challenge-compromise-decree-extends-to-strangers-as-well\/","title":{"rendered":"Bar under Order 23 Rule 3A CPC to challenge compromise decree extends to strangers as well"},"content":{"rendered":"<p><strong>Supreme Court<\/strong>: The bench of AM Khanwilkar and Ajay Rastogi, JJ has held that a decree passed on a compromise cannot be challenged by the stranger to the proceedings in a separate suit. Holding that the bar under Rule 3A to Order 23 CPC would extend to strangers as well, the Court said,<\/p>\n<blockquote><p>\u201cThe purpose of effecting a compromise between the parties is to put an end to the various disputes pending before the Court of competent jurisdiction once and for all.\u201d<\/p><\/blockquote>\n<p>The legislature has brought into force Rule 3A to Order 23, by introducing the amendment to the Civil Procedure Code (Amendment) 1976 w.e.f. 1<sup>st<\/sup> February, 1977, which creates bar to institute the suit to set aside a decree on the ground that the compromise on which decree is based was not lawful.<\/p>\n<blockquote><p><strong>\u201cFinality of decisions is an underlying principle of all adjudicating forums. Thus,<\/strong> <strong>creation of further litigation should never be the basis of a compromise between the parties<\/strong>.\u201d<\/p><\/blockquote>\n<p>The bench explained that Rule 3A of Order 23 CPC put a specific bar that no suit shall lie to set aside a decree on the ground that the compromise on which the decree is based was not lawful. <strong>The scheme of Order 23 Rule 3 CPC is to avoid multiplicity of litigation and permit parties to amicably come to a settlement which is lawful, is in writing and a voluntary act on the part of the parties<\/strong>.<\/p>\n<blockquote><p>\u201cThe Court can be instrumental in having an agreed compromise effected and finality attached to the same. The Court should never be party to imposition of a compromise upon an unwilling party, still open to be questioned on an application under the proviso to Rule 3 of Order 23 CPC before the Court.\u201d<\/p><\/blockquote>\n<p>It, hence, held that merely because the appellant was not party to the compromise decree, will be of no avail to the appellant, much less give him a cause of action to question the validity of the compromise decree.<\/p>\n<p>It, further, explained that after the amendment which has been introduced, neither any appeal against the order recording the compromise nor remedy by way of filing a suit is available in cases covered by Rule 3A of Order 23 CPC. As such, a right has been given under Rule 1A(2) of Order 43 to a party, who denies the compromise and invites order of the Court in that regard in terms of proviso to Rule 3 of Order 23 CPC while preferring an appeal against the decree. Section 96(3) CPC shall not be a bar to such an appeal, because it is applicable where the factum of compromise or agreement is not in dispute.<\/p>\n<p>[Triloki Nath Singh v. Anirudh Singh,\u00a0 <a href=\"http:\/\/www.scconline.com\/DocumentLink\/p3e7Gz86\"><b>2020 SCC OnLine SC 444<\/b><\/a> , decided on 06.05.2020]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: The bench of AM Khanwilkar and Ajay Rastogi, JJ has held that a decree passed on a compromise cannot be <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[30748,41178,2713,41179,41180],"class_list":["post-229181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-challenge","tag-comprimise","tag-decree","tag-order-23-rule-3a","tag-strangers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - 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