VidhiSangh

Supreme Court of India · 12/12/2024

NAVRATAN LAL SHARMA versus RADHA MOHAN SHARMA & ORS.

[2024] 12 S.C.R. 453 · 2024 INSC 970

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Summary

The Supreme Court held that a party aggrieved by a compromise decree has a statutory remedy of moving the court that recorded the compromise to recall it and restore the proceeding, and a court cannot defeat that remedy by recording that no liberty to restore is granted; the High Court's refusal to restore a first appeal on that ground alone was set aside and the recall application remanded.

Issues

  1. Whether a High Court that disposed of a first appeal on a compromise while expressly declining liberty to restore it could reject a later restoration application solely for that reason.
  2. What remedy is available to a party who alleges that a compromise recorded under Order 23 Rule 3 CPC is unlawful because of fraud or non-performance.

Provisions considered

Held

Result

Appeal allowed; High Court order dated 19.10.2023 set aside and the recall application remanded to the High Court for decision on merits, with no opinion expressed on the merits; no order as to costs.

Judgment PDF: Supreme Court of India, [2024] 12 S.C.R. 453.