{"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":"

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

\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

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. 1st<\/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

\u201cFinality of decisions is an underlying principle of all adjudicating forums. Thus,<\/strong> creation of further litigation should never be the basis of a compromise between the parties<\/strong>.\u201d<\/p><\/blockquote>\n

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. 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

\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

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

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

[Triloki Nath Singh v. Anirudh Singh,\u00a0 2020 SCC OnLine SC 444<\/b><\/a> , decided on 06.05.2020]<\/p>\n","protected":false},"excerpt":{"rendered":"

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Banumathi JJ., upheld the decision of the Additional City Civil Judge that a separate suit\u2026","rel":"","context":"In "Supreme Court"","block_context":{"text":"Supreme Court","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/supremecourt\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":365584,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/03\/orissa-hc-trial-court-must-decree-settlement-after-mediation\/","url_meta":{"origin":229181,"position":3},"title":"Once dispute is referred to mediation and settlement is reached, Trial Court cannot refuse decree: Orissa High Court","author":"Editor","date":"November 3, 2025","format":false,"excerpt":"\u201cThe disputes between the neighbours relating to the easementary rights are clearly mentioned as being suitable for mediation.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Trial Court must decree settlement after mediation","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Trial-Court-must-decree-settlement-after-mediation.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Trial-Court-must-decree-settlement-after-mediation.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Trial-Court-must-decree-settlement-after-mediation.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Trial-Court-must-decree-settlement-after-mediation.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":343111,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/03\/07\/locus-standi-to-file-application-under-order-21-rule-97-cpc-unsettling-the-settled-law\/","url_meta":{"origin":229181,"position":4},"title":"Locus Standi to File Application under Order 21 Rule 97 CPC \u2014 Unsettling the Settled Law?","author":"Bhumika Indulia","date":"March 7, 2025","format":false,"excerpt":"by Tupakula Nikhil*","rel":"","context":"In "Op Eds"","block_context":{"text":"Op Eds","link":"https:\/\/www.scconline.com\/blog\/post\/category\/op-ed\/legal-analysis\/"},"img":{"alt_text":"Order 21 Rule 97 CPC","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Order-21-Rule-97-CPC.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Order-21-Rule-97-CPC.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Order-21-Rule-97-CPC.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/03\/Order-21-Rule-97-CPC.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":263412,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/11\/lower-courts-to-deal-with-entire-process-expeditiously-after-receipt-of-the-application-under-s-151-read-with-or-20-r-6-a-cpc\/","url_meta":{"origin":229181,"position":5},"title":"Megh HC | Lower Courts to deal with entire process expeditiously after receipt of the application under S. 151 read with Or. 20 R. 6-A CPC","author":"Editor","date":"March 11, 2022","format":false,"excerpt":"Meghalaya High Court: H.S. 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