Compromise Decree

The Supreme Court of India stated that generally, a compromise decree passed by a Court would be covered by Section 17(1)(b) but subsection(2) of Section 17 provides for an exception for any decree or order of a Court except a decree order expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding. Thus, by virtue of sub-section(2)(vi) of Section 17, any decree or order of a Court does not require registration.

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Generally In case of such compromises, generally at the request of the parties, the court refers the matter to Lok Adalat and they will give it the status of the award and refer to Registrar for due indexing in the records.. I am not sure about such compromises in shares other than stated in the preliminary decree through Lokadalat, to circumvent the procedure for the final decree (in case of collusive decrees) . Please post facts whether this compromise is after a preliminary decree or case is withdrawn for getting a compromise out of court.

The competent professionals that handled the case can offer more guidance to their parties.

Nothing more to be added , both learned friends filled the room