APPLICATION FOR COMPROMISE OF SUIT DRAFTING, PLEADING AND CONVEYANCING Submitted to: Miss. MADU RANA
Submitted !Y: A"us#i S$i%&st&%& Ro'' No. ()*((+ Semeste$ VIII DAMODARAM SANIVAYYA NATIONAL LA- UNIVERSITY VISAAPATNAM
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ACNO-LEDEMENT
I would like to thank my Drafting, Pleading and Conveyancing lecturer, Miss. Madhu Rana, for giving me this opportunity of doing a project, for guiding me during the making of this project on the topic /pplication for Compromise of !uit". #ast $ut not the least% I am thankful for my seniors& and friends& help in the editing and formatting the content. A"us#i S$i%&st&%&
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Abst$&0t A11'i0&tio2 3o$ Com1$omise o3 Suit
'here it is proved to the satisfaction of the Court that a suit has $een adjusted wholly or in part $y any lawful agreement or compromise in writing and signed $y the parties, or where the defendant defendant satisfies the plaintiff in respect of the whole or any part of the su$ject matter of the suit, the Court shall order such agreement, compromise or satisfaction to $e recorded, and shall pass a decree in accordance therewith so far as it relates to the parties to the suit, whether or not the su$ject matter of the agreement, agreement, compromise compromise or satisfaction satisfaction is the same as the su$ject matter of the suit( Provided that where it is alleged a lleged $y one party and denied $y the other that an adjustment or satisfaction has $een arrived at, the Court shall decide the )uestion% $ut no adjournment shall $e granted for the purpose of deciding the )uestion, unless the Court, for reasons to $e recorded, thinks fit to grant such adjournment. *+planationn agreement or compromise which is void or voida$le under the Indian Contract ct, -/0 12 of -/03, shall not $e deemed to $e lawful within the meaning of this rule. P$ob'em 3o$ Com1$omise o3 Suit
Mr. Miglani is the resident of 4lat 5o. 06-, Dwarapu Madhav partment, #awson&s 7ay Colo Colony ny,, 8isakha sakhapa patn tnam am.. Mr. Mr. 9apo 9apoor or is the the resid residen entt of :;<, :;<, !ect !ector or 7-, 7-, Maha Mahana naga gar, r, 8isakhapatnam. Mr. Miglani is the $rotherinlaw of Mr. 9apoor. Mr. 9apoor took a loan of Rs. =,66,666 from Mr. Miglani on 0= th 5ovem$er, 06-= for a time period of 0 months under a promissory note num$er 6=>06-= 6=>06-= dated 0= th 5ovem$er, 06-=. fter the completion of 0 months there was no response from Mr. 9apoor. ?n asked $y Mr. Miglani on - st 4e$ruary, 06-= via an email there was no response. @hen after a continuous series of failed trial $y Mr. Migalani, again a message was sent through through whatsapp whatsapp reminding him of the same on th March 06-< as Mr. 9apoor had $locked Mr. Miglani&s num$er, it was also found that even after Mr. 9apoor had read Mr. Miglani&s te+t message he did not reply and $locked him immediately itself. #uckily, on - th pril, 06-< Mr. Miglani was walking and came across Mr. 9apoor, on $eing asked a$out the amount Mr. 9apoor asked for an e+tension of period and promised to pay, 3
within a month i.e., $y - th May, 06-<. gain, even after the completion of one month, there was no response from the side of Mr. 9apoor. Mr. Miglani tried reaching Mr. 9apoor and it was found that the door of his house was locked, and again the same thing repeated, it was later on discovered that even though Mr. 9apoor was inside the house he used lock it from so as to avoid Mr. Miglani. Mr. Miglani sent a notice via speed post on 02 th Auly, 06-< asking Mr. 9apoor to pay $ack the money otherwise Mr. Miglani shall file a suit against him $ut then there was no reply. 4rom 02 th Auly, 06-< till 0 nd 5ovem$er, 06-<, Mr. Miglani repeatedly sent several notices to Mr. 9apoor $ut all in vain. 4inally, on ; th 5ovem$er, 06-<, Mr. 9apoor replied through speed post and again asked for e+tention for a period of 0 months. gain after the completion of 0 months there was no reply. s a result Mr. Miglani filed a recovery suit against Mr. 9apoor on = th 4e$ruary, 06-;. !ince Mr. Miglani and Mr. 9apoor are relatives, therefore Mr. 9apoor insisted for settlement rather than going to the court to which Mr. Miglani affirmed on -= th 4e$ruary, 06-; under the settlement deed 5o. 60>06-;. lso, Mr. 9apoor promised and assured to pay the principal amount along with -6B interest and that in case of any delay the amount to $e charged with a daily interest of B. Mr. Miglani now wants to write an application for compromise of suit in this regard.
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T&b'e o3 Co2te2t *. (. 4. 5. +. 6. 7.
Introduction..= 7urden on Parties.= 'hen alleged $y one party and denied $y the other party of the settlement< 'hen can an application applica tion for compromise of suit $e filled.............................................< filled.............................................< Compromise of suit in case of a minor.< mendments..; Case #aws..; Eurpreet !ingh vs. Chatur 7huj Eoel • Pushpa Devi 7hagat 1dead3 through #R. !adhna Rai 1!mt.3 vs. Rajinder !ingh and •
?thers 8. Pro$lem on Compromise of !uit. 9. !olution..-6 *). 7i$liography..-:
T&b'e o3 C&ses
-. Eurpre Eurpreet et !ingh !ingh vs. Chat Chatur ur 7huj 7huj Eoel Eoel *988; * SCC (7) 0. Pushpa Pushpa Devi 7hagat 7hagat 1dead3 1dead3 through through #R. !adhna !adhna Rai 1!mt.3 1!mt.3 vs. Rajinde Rajinderr !ingh and and ?thers ())6; + SCC +66
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I2t$odu0tio2 Com1$omise o3 Suit
It is open to the parties to compromise, adjust or settle a suit $y an agreement or compromise. @he general principle is that all matters which can $e decided in a suit can also $e settled $y means of a compromise -. !u$de2 o2 P&$ties
In case of 7anwari #al v Chando Devi 0, it was held that a court passing a compromise decree performs a judicial act and not a ministerial act. @herefore, the court must satisfy itself that the agreement agreement is lawful and it can pass a decree in accordance accordance with it and that such decree can $e enforced against all the parties to the compromise. If the compromise is not lawful, an order recording compromise can $e recalled $y the court 1IR -22: !C --:23. -#e2 &''e
Proviso Proviso to Rule : lays down that where it is alleged alleged $y one party and denied $y the other that an adjustment or satisfaction has $een arrived at, the court shall decide the )uestion% $ut no adjournment to $e granted unless the court thinks fit to grant it. n agreement or compromise which is void or voida$le under the Indian Contract ct shall not $e deemed to $e lawful within the meaning of this rule *+planation to Rule:3. -#e2 0&2 &2 &11'i0&tio2 3o$ 0om1$omise o3 suit be 3i''ed=
5o agreement agree ment or compromise in a representative re presentative suit can ca n $e entered into without the leave le ave of the court, otherwise it shall $e void 1Rule :73. Com1$omise o3 suit i2 0&se o3 & mi2o$
!imilarly, a compromise on $ehalf of a minor cannot $e made without the courtFs leave. 5othing in this ?rder shall apply to any proceedings proceedings in e+ecution of a decree or order 1R=3. C&se L&>s
1 Prithvichand v !. G. !hinde IR -22: !C -202
2 IR -22: !C --:2
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*. Gu$1$eet Si2<# %s. %s. C#&tu$ !#u? Goe' 4
4acts( @he respondent therein Chatur 7huj Eoel, a practising advocate at Chandigarh first lodged a criminal complaint against Colonel !ukhdev !ingh, father of the appellant, under !ection =06 of the Indian Penal Code -;6 1hereinafter referred to as Hthe IPCH3, after he had served the respondent with a notice dated --.6/.-2/2 forfeiting the amount of Rs.=6,666> paid $y him $y way of earnest money, money, alleging that he was in $reach of the contract dated 6=.6;.-2/2 entered into $etween Colonel !ukhdev !ingh, acting as guardian of the appellant, then a minor, and the respondent, for the sale of residential house 5o. -. In terms of the agreement, the respondent was to pay a further sum of Rs.-,:<,666> to the appellantFs father Colonel !ukhdev !ingh $y -6.6/.-2/2 when the said agreement of sale was to $e registered and vacant possession of the house delivered to him, and the $alance amount of Rs.-,-6,666> on or $efore :-.6-.-26 when the deed of conveyance was to $e e+ecuted. @he dispute $etween the parties was that according to Colonel !ukhdev !ingh, there was failure on the part of the respondent to pay the amount of Rs.-,:<,666> and get the agreement registered, while the respondent alleged that he had already purchased a $ank draft in the name of the appellant for Rs.-,:<,666> on 6/.6/.-2/2 $ut the appellantFs father did not turn up to receive the same. lthough the dditional Chief Audicial Magistrate $y order dated :-.-6.-2/2 dismissed the complaint holding that the dispute was of a civil nature and no process could issue on the complaint, the learned !ingle Audge, $y his order order dated dated --.60 --.60.-2 .-26 6 set aside aside the order order of the learned learned dditio dditional nal Chief Chief Audicia Audiciall Magistrate holding that the facts $rought out clearly warranted an inference of dishonest intention on the part of Colonel !ukhdev !ingh and accordingly directed him to proceed with the trial according to law. ggrieved Colonel !ukhdev !ingh came up in appeal to this Court $y way of special leave. 'hile construing ?rder III Rule Rule : of CPC. Jeld( Knder Rule : as it now stands, when a claim in suit has $een adjusted wholly or in part $y any lawful agreement or compromise, the compromise must $e in writing and signed $y the parties and there must $e a completed agreement $etween them. @o constitute an adjustment, the agreement or compromise must itself $e capa$le of $eing em$odied in a decree. 'hen the parties enter into a compromise during the hearing of a suit s uit or appeal, there is no reason why the re)uirement that the compromise should $e reduced in writing in the form of an instrument
3 1-23 - !CC 0/6
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signed $y the parties should $e dispensed with. @he court must therefore insist upon the parties to reduce the terms into writing. 0. Pus#1& De%i !#&<&t de&d; t#$ou<# LR. S&d#2& R&i Smt.; %s. R&?i2de$ Si2<# &2d Ot#e$s
Pushpa Devi 7hagat 1dead3 through #R. !adhna Rai 1!mt.3 vs. Rajinder !ingh and ?thers =, the term LinstrumentF used in a$overeferred Eurpreet !inghFs case refers to a writing a formal nature, this Court e+plained that when the hearing hearing of letters patent appeal commenced $efore the Jigh Court, the parties took time to e+plore the possi$ility of settlement and when the hearing was resumed, the appellantFs father made an offer for settlement which was endorsed $y the counsel for the appellant also. @he respondent was also present there and made a statement accepting the offer. @he said offer and acceptance were not treated as final as the appeal was not disposed of $y recording those terms. ?n the other hand, the said proposals were recorded and the matter was adjourned for payment in terms of the offer. 'hen the matter was taken up on the ne+t date of hearing, the respondent stated that he is not agreea$le. @he Jigh Court directed that the appeal would now $e heard on merits as the respondent was not prepared to a$ide $y the proposed compromise. @he said order was challenged $efore this Court $y the appellant $y contending that the matter was settled $y a lawful compromise $y recording the statement $y appellantFs counsel and the respondentFs counsel and the respondent could not resile from such compromise and, therefore, the Jigh Court ought to have disposed of the appeal in terms of the compromise. It is in this factual $ackground, the )uestion was considered with reference to Eurpreet !inghFs case 1supra3. @his was e+plained in PushpadeviFs case that the distinguishing feature in that case was that though the su$missions made were recorded $ut that were not signed $y the parties or their counsel, nor did the Court treat the su$missions as a compromise. In PushpadeviFs case, the Court not only recorded the terms of settlement $ut thereafter directed that the statements of the counsel $e recorded. @he statement of the counsel were also recorded on oath read over and accepted $y the counsel to $e correct and then signed $y $oth counsel. In view of the same, in PushpadeviFs case, it was concluded that there was a valid compromise in writing signed $y the parties. < 4 1066;3 < !CC <;;
www.legal$log.in,, 'e$page( http(>>www.legal$log.in>06-->6>compromise$etween 5 'e$site( www.legal$log.in partiesroleof.htmlsthash.N$8Dro;k.dpuf , rticle( Compromise $etween parties, #ast visited at( -;th March 06-; at 62(0= pm. 8
Ame2dme2ts i<# Cou$t Ame2dme2ts A''&#&b&d@ *. In rule : of ?rder 0: $etween the words Oor compromise" and Oor where" insert the
words Oin writing duly signed $y parties"% and $etween the words Osu$jectmatter of the suit" and the words the Court" insert the words Oand o$tains an instrument in writing duly signed $y the plaintiff." (. t the end of the Rule : of ?rder 0: add the following, namely( OProvided that the provisions of this rule shall not apply to or in any way affect the provisions of the ?rder I8, I8, Rules :, < and . *+planation @he e+pression Oagreement" and Ocompromise" include a joint statement of the the part parties ies conc concer erne ned d or their their coun counsel sel reco record rded ed $y the the Cour Court, t, and and the the e+pr e+pres essi sion on OInstrument includes a statement stat ement of the plaintiff or his counsel recorded $y the Court." K.P. EaQ., :- ..-2/=, Pt. II, p. <0 1:-..-2/=3. Provided that" @.5. Eovernment Eovernment EaQ. -.0.-2-, Pt. III, !. 0, p. -. O$iss& Delete Jigh Court mendment mendment ?n, EaQ., 0<.<.-2=, Pt. III, , p. /6. Pu2?&b, &$"&2& &2d C#&2di<&$# dd the following provisos to the rule(
OProvided that the hearing of a suit shall proceed and no adjournment shall $e granted in it for the purposes of deciding whether there has $een any adjustment or satisfaction unless the Court for reasons to he recorded in writing thinks fit to grant such adjournment, and provided further that the judgment in the suit shall not $e announced until the )uestion of adjustment or satisfaction has $een decided( Provided further that when an application is made $y all the parties to the suit either in writing or in open court through their counsel that they wish to compromise the !uit, the Court may fi+ a date on which the parties or their counsel should appear and the compromise $e recorded $ut shall proceed to hear those witnesses in the suit who are already in attendance, unless for any other reason to $e recorded in writing, it considers it impossi$le or undesira$le to do so. f upon the date fi+ed no compromise has $een recorded, no further adjournment shall $e granted for this purpose, unless the court, for reasons to $e recorded in
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writing, considers it highly pro$a$le that the suit will $e compromise on or $efore the date to which the court purposes to adjourn the hearing." ; P$ob'em 3o$ Com1$omise o3 Suit
Mr. Miglani is the resident of 4lat 5o. 06-, Dwarapu Madhav partment, #awson&s 7ay Colo Colony ny,, 8isakha sakhapa patn tnam am.. Mr. Mr. 9apo 9apoor or is the the resid residen entt of :;<, :;<, !ect !ector or 7-, 7-, Maha Mahana naga gar, r, 8isakhapatnam. Mr. Miglani is the $rotherinlaw of Mr. 9apoor. Mr. 9apoor took a loan of Rs. =,66,666 from Mr. Miglani on 0= th 5ovem$er, 06-= for a time period of 0 months under a promissory note num$er 6=>06-= 6=>06-= dated 0= th 5ovem$er, 06-=. fter the completion of 0 months there was no response from Mr. 9apoor. ?n asked $y Mr. Miglani on - st 4e$ruary, 06-= via an email there was no response. @hen after a continuous series of failed trial $y Mr. Migalani, again a message was sent through through whatsapp whatsapp reminding him of the same on th March 06-< as Mr. 9apoor had $locked Mr. Miglani&s num$er, it was also found that even after Mr. 9apoor had read Mr. Miglani&s te+t message he did not reply and $locked him immediately itself. #uckily, on - th pril, 06-< Mr. Miglani was walking and came across Mr. 9apoor, on $eing asked a$out the amount Mr. 9apoor asked for an e+tension of period and promised to pay, within a month i.e., $y - th May, 06-<. gain, even after the completion of one month, there was no response from the side of Mr. 9apoor. Mr. Miglani tried reaching Mr. 9apoor and it was found that the door of his house was locked, and again the same thing repeated, it was later on discovered that even though Mr. 9apoor was inside the house he used lock it from so as to avoid Mr. Miglani. Mr. Miglani sent a notice via speed post on 02 th Auly, 06-< asking Mr. 9apoor to pay $ack the money otherwise Mr. Miglani shall file a suit against him $ut then there was no reply. 4rom 02 th Auly, 06-< till 0 nd 5ovem$er, 06-<, Mr. Miglani repeatedly sent several notices to Mr. 9apoor $ut all in vain. 4inally, on ; th 5ovem$er, 06-<, Mr. 9apoor replied through speed post and again asked for e+tention for a period of 0 months. gain after the completion of 0 months there was no reply. s a result Mr. Miglani filed a recovery suit against Mr. 9apoor on = th 4e$ruary, 06-;. !ince Mr. Miglani and Mr. 9apoor are relatives, therefore Mr. 9apoor insisted for settlement rather than going to the court to which Mr. Miglani affirmed on -= th 4e$ruary, 06-; under the settlement deed 5o. 60>06-;. lso, Mr. 9apoor promised and assured to pay the principal amount along with -6B interest and that in
www.lawQonline.com,, 'e$page( http(>>www.lawQonline.com>$areacts>civilprocedure 6 'e$site( www.lawQonline.com code>order0:rule:codeofcivilprocedure.htm , rticle( ?rder 0: of Code of Civil Procedure, #ast code>order0:rule:codeofcivilprocedure.htm, visited on -; th March 06-; at 62(0- pm. 10
case of any delay the amount to $e charged with a daily interest of B. Mr. Miglani now wants to write an application for compromise of suit in this regard. So'utio2
APPLICATION FOR COMPROMISE OF SUIT
IN TE DISTRICT COURT OF VISAAPATNAM ANDRA PRADES CIVIL SUIT NO. (5( OF ()*6
In the matter of( M$. R&m Mi<'&2i
!>? Mr. 8ijay Miglani R>? 4lat 5o. 06-, Dwarapu Madhav partment, #awson&s 7ay Colony, 8isakhapatnam<:666-...1pplicant3 Ve$sus M$. S#&"&m &1oo$SO M$. A2um&" &1oo$
R>? :;<, !ector 7-, Mahanagar, 8isakhapatnam 8isakhapatnam <:666-..1?pp <:666-..1?pposite osite Party3
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A11'i0&tio2 Fo$ T#e Com1$omise Com1$omise O3 Ci%i' Suit No. 55 O3 ()*+
@he applicant respectfully states as follows( -. @hat the applicant applicant is Mr. Ram Miglani, Miglani, !>? Mr. Mr. 8ijay 8ijay Miglani, Miglani, R>? 4lat 4lat 5o. 06-, Dwarapu Dwarapu Madhav partment, #awson&s 7ay Colony, 8isakhapatnam, hereinafter shall $e addressed as applicant. 0. @hat the opposite opposite party is Mr. !hyam !hyam 9apoor, 9apoor, !>? !>? Mr. numay numay 9apoor 9apoor,, R>? :;<, !ector !ector 7-, Mahanagar, 8isakhapatnam, 8isakhapatnam, hereinafter shall $e addressed as the opposite party. :. @hat the the applicant applicant is is the $rother $rotherinlaw inlaw of the opposite opposite party. party. =. @hat @hat the oppo opposit sitee party party took took a took took a loan loan of Rs. Rs. =,66 =,66,6 ,666 66 from the applic applican antt on 0= th 5ovem$er, 06-= for a time period of 0 months under a promissory note num$er 6=>06-< dated 0=th 5ovem$er, 06-=. <. @hat after after the completio completion n of 0 months months there there was no response response from the the side of the the opposite opposite party of the loan. ;. @hat @hat on ask asked ed $y the the applic applican antt on - st 4e$ruary, 06-=, via an email 1the copy of the email has $een attached in the nne+ureII3, then after a continuous series of failed trial $y the applicant, again a message was sent through whatsapp 1the copy has $een attached in nne+ureIII3 reminding the opposite party of the same on th March 06-< as the opposite party had $locked the applicant&s num$er, it was also found that even after the opposite party had read the applicant&s te+t message he did not reply and a nd $locked him immediately immediatel y itself. @hat the opposite party after a repeated notice from 2 th 4e$ruary, 06-; to 0 nd March, 06-; did not reply. repl y. th /. @hat on - pril, 06-< when the applicant was walking through the street, he came across the opposite party, on $eing asked a$out the amount the opposite party pleaded for an e+tension of period and promised to pay, within a month i.e., $y - th May, 06-<. gain, even after the completion of one month, there was no response from the side of the opposite party. . @hat @hat the applican applicantt tried reachin reaching g the opposite opposite party party and it was found found that the door door of his house was locked, and again the same thing repeated, it was later on discovered that even though the opposite party was inside the house he used lock it from so as to avoid the applicant. 2. @hat @hat the appl applica icant nt sent sent a notic noticee via speed speed post post on 02 th Auly, 06-< 1Copy of the same has $een attached in nne+ureI83 asking the opposite party to pay $ack the money otherwise the applicant will $e forced to file a suit against him $ut then there was no reply. 4rom 02 th Auly, 06-< till 0 nd 5ovem$er, 06-<, the applicant repeatedly sent several notices to the 12
opposite party $ut all in vain. 4inally, on ; th 5ovem$er, 5ovem$er, 06-<, 06-<, the opposite opposite party replied replied through through speed post 1copy of the same has $een attached attached in nne+ure8 nne+ure833 and again asked for e+tension for a period of 0 months. gain after the completion of 0 months there was no reply. -6. @hat the applicant filed a recovery suit against the opposite opposite party on =th 4e$ruary, 06-;. --. --. @hat the opposit oppositee part on -6 th 4e$ruary, 06-; offered for a settlement and compromise and promised to pay the principal amount along with -6B interest and that in case of any an y delay the amount to $e charged with a daily interest of B. -0. @hat @hat the applican applicantt agreed agreed to the settleme settlement nt on -= th 4e$ruary, 06-; under the settlement deed 5o. 60>06-;. In the light of the a$ove mentioned facts and circumstances, the applicant prays the Jon&$le Court to( -. ccept ccept the the propo proposal sal for for the settle settlemen mentt dated dated -=th March, 06-;, under the settlement deed 5o. 60>06-;. 0. Make such such an an order order or orders as the Jon&$le Jon&$le Court Court deems deems fit. fit.
Place( 8isakhapatnam 8isakhapatnam
1!ignature of the pplicant3
Date( -2th 4e$ruary 06-;
Mr. Ram Miglani dvocate for the pplicant
AFFIDAVIT
In the Court of In the Civil !uit 5o. In the matter of( Mr. Ram Miglani...1pplicant3 !>? Mr. 8ijay Miglani R>? 4lat 5o. 06-, 13
Dwarapu Madhav partment, #awson&s 7ay Colony, 8isakhapatnam <:6668ersus Mr. !hayam 9apoor..1?pposite Party3 !>? Mr. numay 9apoor R>? :;<, !ector 7-, Mahanagar, 8isakhapatnam 8isakhapatnam <:666ffidavit in support of the application for the compromise of the suit in the Civil !uit 5o. I, Mr. Ram Miglani, do here$y solemnly affirm and declare as under( -. @hat the the accompanyin accompanying g application application has has $een drafted drafted under under my instruct instructions ions 0. @hat the the contents contents of paras - to to -6 of the the accompanyin accompanying g application application are are correct and and true to the $est of my knowledge and no part of it is false and nothing material has $een concealed therein. :. @hat @hat I furthe furtherr solemn solemnly ly affirm affirm and declare declare that the contents contents of this affidav affidavit it of mine mine are corre correct ct and and true true and and no part part of it is false false and and noth nothin ing g mater material ial has has $een $een conc conceal ealed ed therefrom. ffirmed here at( 8isakhapatnam 8isakhapatnam
Deponent
Date( -
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!I!LIOGRAPY !ooBs:
-. Austice P.!. 5arayana, 5arayana , Civil Pleadings Practice along with Model 4orms, 4orms, -6 *d, llaha$ad #aw Jouse, 06-<. -ebsou$0es:
0. www.lawQonline.com :. www.legal$log.in
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