No separate suit can be filed to ascertain the validity of a compromise memo

No separate suit can be filed to ascertain the validity of a compromise memo

R Rajanna vs S R Venkataswamy & Ors

Supreme Court

20/11/2014

CIVIL APPEAL NOS. 10416-10417 OF 2014 (Arising out of S.L.P. (C) Nos. 13942-13943 of 2012)

About/from the judgment:

No separate suit can be filed to ascertain the validity of a compromise memo!

 

A plain reading of the proviso to Order XXIII Rule 3 lays down that where one party alleges and the other denies adjustment or satisfaction of any suit by a lawful agreement or compromise in writing and signed by the parties, the Court before whom such question is raised, shall decide the same.

 

In every case where the question arises whether or not there has been alawful agreement or compromise in writing and signed by the parties, the question whether the agreement or compromise is lawful has to be determined by the Court concerned.

 

Pushpa Devi Bhagat v. Rajinder Singh and Ors. (2006) 5 SCC 566.

“17. ..Therefore, the only remedy available to a party to a consent decree to avoid such consent decree, is to approach the court which recorded the compromise and made a decree in terms of it, and establish that there was no compromise. In that event, the court which recorded the compromise will itself consider and decide the question as to whether there was a valid compromise or not.

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