Alteration of decree by compromise whether permissible?
It is open to the parties to enter into a compromise with reference to their rights and obligations under a decree. There is nothing in the Code of Civil Procedure which prevents the parties from entering into such a compromise. If the compromise amounts to an adjustment of the decree it must be recorded under 0. 21, r. 2 and if not so recorded, it cannot be recognised by any Court executing the decree. The compromise of May 29, 1954 was so recorded within the prescribed period of limitation and was a fair bargain to postpone the execution of the decree on payment of reasonable interest. The terms of the compromise related to the execution of the decree, the executing court has power to determine all questions arising between the parties to the suit relating to the execution of the decree and to give appropriate relief on such determination. Exclusive power to determine such question is given to the executing court by s. 47 of the Code of Civil Procedure. The agreement to pay the higher interest is enforceable in execution of the decree.
Civil - alteration of decree by compromise - Order 21 Rule 2 and Order 20 Rule 11 of Code of Civil Procedure, 1908 - application for execution filed by appellant in Court of Civil Judge resulting in compromise - not to execute decree for two months - interest paid on decretal amount - compromise confirmed by executing Court - appeal to High Court - observed that no comprise can be entered to pay higher rate of interest - appellant preferred appeal - Supreme Court decided parties can enter in compromise with reference to their rights and obligations under decree - held, reasonable rate of interest in compromise is not alteration of decree.
Civil Procedure Code, 1908 s. 47 and O.21 r. 2--Execution proceedings ending in compromise whereby interest at rate higher than decreed rate agreed to be paid--if such agreement enforceable in execution proceedings.
Supreme Court of India
Moti Lal Banker vs Mahraj Kumar Mahmood Hasan Khan on 9 February, 1968
Equivalent citations: 1968 AIR 1087, 1968 SCR (3) 758
Bench: Bachawat, R.S.
Civil Procedure Code, 1908 s. 47 and O.21 r. 2--Execution proceedings ending in compromise whereby interest at rate higher than decreed rate agreed to be paid--if such agreement enforceable in execution proceedings.
