Sunday, 29 June 2014

When a party should not be permitted to retract compromise entered by said party?


The   suit   was   already 
withdrawn   as   far   as   regards   Defendant   No.1   was 
concerned and application Exhibit 19 filed by the 
Plaintiff   did   not   seek   to   withdraw   the   said 
purshis   Exhibit   17.   The   compromise   recorded 
existence   of   facts   regarding   Will   in   favour   of 
Defendant   No.2   and   that   due   to   relationship 
Defendant   No.2   has   agreed   to   pay   amount   and   to 

compromise   the   matter.   The   contents   do   not   show 
that   it   is   unlawful   compromise.   When   it   was 
prepared   and   Plaintiff   discussed   it   with   her 
daughters   and   Advocate   and   herself   tendered   it 
before   Court   and   admitted   contents   read   over 
before Court, subsequent retracting (before formal 
Order   below   Exhibit   1   decreeing   the   suit)   cannot 

be   accepted.   Proceedings   before   Court   are   solemn 
proceedings   and   after   the   compromise   is   duly 
recorded, retracting vide application like Exhibit 
19   claiming   that   it   was   not   read   over,   is 
contemptuous. In evidence she admitted that Court 
asked   her   about   the   terms   of   compromise   and   she 
admitted   contents.   Trial   Court   has   thus   properly 
rejected subsequent retracting and decreed suit as 
compromised. 


BENCH AT AURANGABAD
                                       
     IN  THE HIGH COURT OF JUDICATURE AT BOMBAY 
   CIVIL REVISION APPLICATION NO.131 OF 2012

Mandrawati w/o Gangadhar Kshirsagar,

       VERSUS             
 Maruti s/o Arjun Kshirsagar,
       
              CORAM:  A.I.S. CHEEMA, J.
  
  DATE OF PRONOUNCING JUDGMENT : 25TH FEBRUARY, 2014.
            Citation; 2014(3) ALLMR 684 Bom
                    

Heard   counsel   for   both   sides.   The 
1.


Revision Application has been admitted and finally 
heard   with   consent   of   learned   counsel   for   both 
sides.
2.
The   Applicant   is   original   Plaintiff. 
Respondents are legal heirs of original Defendant 
No.1   Maruti.   Respondent   No.1­C   is   Legal   Heir   of 
Defendant No.1 and also original Defendant No.2. I 
will   refer   to   the   Applicant   as   Plaintiff   and 
Respondent No.1­C as Defendant.

The   Plaintiff   filed   Regular   Civil   Suit 
3.
No.151   of   2007   for   partition   against   her   brother 
Defendant   Maruti   and   his   son   ­   Defendant   No.2 
Datta.   According   to   the   Applicant­Plaintiff, 
Defendants   prepared   a   compromise   deed   and 
compelled the Plaintiff   for her signature on the 
compromise   and   the   same   was   filed   in   the   trial 

Court   of   Civil   Judge,   Senior   Division,   Latur   at 
Exhibit 16 on 2nd  January, 2008. She did not give 
free consent to the said compromise.  The same was 
obtained by force. Defendants succeeded in getting 
decree  passed  by the trial Court on 7th  February, 
2008. The same is illegal and improper. Plaintiff 
had filed Civil Revision Application No.75 of 2008 
in   the   High   Court   to   quash   the   said   order 
recording   compromise   on   dated   7th  February,   2008. 
By   Judgment   dated   23rd  June,   2009   High   Court 
quashed   and   set   aside   the   impugned   order   of   the 
trial Court and remanded the matter directing the 
trial   Court   to   hear   the   parties   afresh   on   the 
point as to whether really there was a compromise 

between   the   parties   and   then   to   pass   appropriate 

orders.
After   the   matter   was   remanded,   parties 
led   oral   evidence   regarding   the   alleged 
compromise.   Plaintiff   brought   evidence   to   claim 
that  the  compromise  was not  willful  and  the same 

deserved   to   be   discarded.   Defendant   brought 
evidence to prove that there was wilful and lawful 
compromise.   After   hearing   the   parties,   the   trial 
Court   vide   order   dated   21st  December,   2011   held 
that   the   allegations   of   fraud   and   other   grounds 
are   vague   and   that   the   compromise   which   was 
recorded   was   by   free   will   and   consent   and   there 
was no coercion. Accordingly compromise was taken 
on record and decree passed vide orders dated 21st 
December,   2011.   Thus,   the   present   Revision   has 
been filed.
4.
I have heard counsel for both sides. The 
learned   counsel   for   Applicant­Plaintiff   has 

submitted as follows:­
The compromise which was tendered in the 
Court had been obtained by fraud by the Defendant 
No.2.   Plaintiff   filed   application     that   the 
compromise   was   fraudulent.   The   compromise 
recorded,   was   only   between   the   Plaintiff   and 

Defendant No.2 and Defendant No.1 was not party to 
the   same.   On   the   same   day   when   the   compromise 
Exhibit 16 was tendered, the Advocate Mr. Sonawane 
of Plaintiff filed purshis Exhibit 17 withdrawing 
the   suit   against   Defendant   No.1   Maruti.   On   2nd 
January,   2008,   order   below   Exhibit   16   was   passed 
by   the   Court,   the   order   remained   to   be   passed 
below Exhibit 1 as on 2nd January, 2008 matter had 
been taken on board. Before the matter came up on 
next date, the Plaintiff had filed an application 
not   to   record   the   compromise.   Such   application 
Exhibit   19   was   filed   by   the   Plaintiff   on   14th 
January, 2008 retracting the earlier compromise.  

Reliance   was   placed   by   Plaintiff   on   the 
.
matter   of  Jaywantraj   Punamiya   and   others   vs.   H. 
Chokshi&   Co.   Pvt.   Ltd.,   reported   in   (1997)   10 
Supreme   Court   Cases,   Page   193  to   submit   that   in 
that   matter   there   was   contingent   compromise 
appointing third person for disposal of the flats 
in   dispute.   Court   declined   to   record   the   said 

compromise. This was upheld by the Hon'ble Supreme 
Court.   Reliance   is   also   placed   on   the   matter   of 
Santosh   vs.   Jagat   Ram   and   another,   reported   in 
(2010) 3 Supreme Court Cases, Page 251, where, in 
view   of   the   facts   of   that   matter   and   on 
appreciating   the   evidence   concerned,   Hon'ble 
Supreme   Court   set   aside   the   partition   decree 
fraudulently obtained in subsequent suit filed by 
appellant   therein.   Reference   was   made   to   the 
matter   of  Arjan   Singh   vs.   Punit   Ahluwalia   and 
others,  reported   in 2009(2)  Mh.  L.J.  Page 13. In 
that matter for one property there were two suits 
against one Dr. Bawa for specific performance and 
in   the   subsequent   suit   Dr.   Bawa   compromised.   It 

was   found   that   such   compromise   decree   did   not 
satisfy   requirement   of   law   and   same   was   not 
binding  on the  Plaintiff   of the earlier  suit,  as 
the   same   would   be   hit   by   the   doctrine   of  lis 
pendens. 
Per   contra,   learned   counsel   for 
5.

Respondent­Defendant submitted as under:­
The   Plaintiff   had   compromised   the   suit 
with Defendant No.2 and withdrew the suit against 
Defendant No.1. The compromise tendered as well as 
the   withdrawal   application,   both,   had   signatures 
of Plaintiff. The Defendant No.2 not merely joined 
the   compromise   but   also   acted   upon   the   same   by 
depositing   the   money   in   the   Bank.   Defendant   had 
called Plaintiff and her daughters to receive the 
money as per the compromise. The daughter came and 
so   from   the   account   of   Defendant,   money   was 
transferred to the daughter Asha to the extent of 
Rs.70,000(Rupees   Seventy   Thousand)   and   the   same 

was put in fixed deposit, which is on record. Asha 
subsequently encashed the fixed deposit premature. 
The   orders   passed   in   Revision   were   merely   to 
confirm   if   in   reality   the   compromise   was   there. 
The   evidence   on   record   shows   that   the   Plaintiff 
was aware of the compromise which was drafted and 
shared by her   with her Advocate Mr. Sonawane and 

she had discussed the same with her daughters and 
was   aware   of   the   contents   and   Plaintiff   herself 
had   tendered   the   compromise   in   the   Court   which 
came to be recorded, but somehow, subsequently she 
has tried to retract. Defendant maintained account 
in Bank so that Plaintiff could be paid any moment 
and  as soon  as present   impugned  order  was  passed 
on   21st  December,   2011,   Defendant   deposited   the 
remaining money of compromise in the Court on 22nd 
December,   2011   itself.   The   impugned   order     dated 
21st  December,   2011   of   the   Court   after   recording 
evidence   regarding   the   compromise,   as   passed   by 
the trial Court is properly reasoned order and in 
Revision,   it   would   not   be   appropriate   to   disturb 

the findings of facts as same are legally tenable. 
The Revision is not maintainable as decree on the 
basis of compromise has been passed. The Revision 
deserves to be dismissed.  
6.
In   reply,   learned   counsel   for   the 
Plaintiff   submitted   that   the   present   Revision   is 

maintainable as under Section 96(3) of the Code of 
Civil   Procedure,   appeal   would   not   lie   as   the 
decree   concerned   would   be   treated   as   passed   by 
consent of parties.
7.
The   document   of   compromise   Exhibit   16 
filed in the suit, in Para 1 referred to the facts 
of   the   matter   and   that   the   original   owner   was 
Arjun   Kshirsagar   who   had   by   Will   given   the 
property to Defendant No.2 Datta and so Plaintiff 
accepted that she did not have right in the same. 
However, (in Para 2 it is mentioned) she has two 
daughters     and   is   old   and   due   to   the   relations, 
Defendant   No.2   agreed   to   pay   Rs.2,10,000(Rupees 

Two   Lakh   Ten   Thousand)   to   the   Plaintiff   within 
next   six   months,   out   of   which   Rs.70,000/­(Rupees 
Seventy Thousand) each would be paid to Plaintiff 
and   to   her   two   daughters.   Compromise   with   such 
contents   was   tendered   before   the   Civil   Judge, 
Senior Division, Latur on 2nd  January, 2008 and he 
passed   orders  below  the same  to the  effect  that, 

the   Plaintiff   and   Defendant   No.2   are   present   – 
they verified and admitted contents and compromise 
is   read   over   to   them,   and   hence   verified.   Trial 
Court   record   shows   that   on   same   day   Advocate   of 
Plaintiff   Mr.   Sonawane   filed   purshis   Exhibit   17 
mentioning   that   as   matter   is   compromised   between 
Plaintiff   and   Defendant   No.2,   therefore   the 
Plaintiff   does   not   want   to   proceed   against 
Defendant   No.1.   The   purshis   was   signed   by 
Plaintiff also and the Court read and recorded the 
same.
8.
It   appears   that   on   14th  January,   2008 
Plaintiff engaged another Advocate Mr. D.K. Jadhav 

and   filed   application   Exhibit   19   claiming   that   a 
so   said   compromise   has   been   filed   but   the 
compromise   was not  explained   or read  over to  the 
Plaintiff and that she has been cheated. Plaintiff 
was  not accepting  the  Will  Deed also.  The  market 
price   of   the   property   was   not   considered   and 
Defendant No.2 on his own, put the figure of Rs.

2,10,000/­   (Rupees   Two   Lakh   Ten   Thousand)   and 
Plaintiff   had   no   guarantee   that   Defendant   No.2 
would pay the amount. The compromise should not be 
accepted and suit should be continued.
.
On   such   application   being   filed,   the 
Civil   Judge,   Senior   Division,   passed   following 
order on 7th February, 2008:­ 
"1.   The   suit   for   partition   and 
separate   possession   by   sister 
against   brother   and   brother's   son. 
The   plaintiff   and   defendant   no.2 
filed compromise and plaintiff filed 
withdrawal   pursis   against   defendant 
no.1 vide exh.16 & 17 respectively. 
I   have   read   over   the   contents   of 
compromise   to   plaintiff   and 

defendant   no.2   to   which   they 
admitted,   hence   compromise   is 
verified   and   order   came   to   be 
passed. However, the final order was 
deferred   because   on   the   date   of 
filing   of   the   compromise,   file   was 
taken   on   board   as   it   was   fixed   on 
8.1.2008.   On   8.1.2008   holiday 
declared and hence file was fixed on 
14.1.2008   for   order.   On   14.1.2008 
present application came to be filed 
on the allegations that the contents 
of   compromise   deed   were   not   read 
over and explained to the plaintiff 
and she was cheated. So also she do 
not   admit   will   deed.   However,   the 
contention   is   incorrect   because   I 
have   personally   read   over   and 
explained   the   contents   to   her   and 
she   admitted   it   to   be   true   and 
correct   and   then   compromise   was 
verified.   The   second   contention 
raised   in   the   application   is   that 
she have no guarantee as to whether 
or   not   the   defendant   no.2   will   pay 
the   amount   of   compromise   i.e.   Rs.
2,10,000/­   to   her   and   hence   the 
compromise should not be accepted.
2.     Say   filed   by   defendant   No.2 
below   exh.22   and   resisted   the 
application.   I   heard   advocates   for 
the parties.
3.       After   verification   of   the 
compromise   the   only   role   of   the 
Court   was   to   pass   formal   order   and 
in such circumstances the contention 
of the plaintiff cannot be accepted 
now.   The   apprehension   that   the 
defendant   no.2   will   not   pay   Rs.

Further Order was passed on Exhibit 1 and 

9.
2,10,000/­   is   of   no   consequences 
because   after   passing   final   order 
the   decree   would   be   drawn   in   terms 
of the compromise and plaintiff have 
every   right   to   get   it   executed   for 
which the Court will certainly help 
her for recovering the amount along 
with   incidental   charges.   The 
allegation of the cheating is vague 
hence   cannot   be   accepted.   As   such 
the   application   being   devoid   of 
merit is rejected."
Suit was decreed in terms of compromise.  When the 
Civil   Revision   Application   No.75   of   2008   was 
carried  over  to this  Court  by the Plaintiff,   the 
above order of the trial Court was quashed and set 
aside as it was observed that formalities required 
to be followed in such matters had been given go­
bye.   The   order   was   quashed   and   set   aside   and 
matter   was   remanded   to   the   trial   Court   to   hear 
afresh   on   the   point   as   to,   whether   in   reality   a 
compromise was entered into between the parties to 
the   proceedings   and   then   to   pass   appropriate 
orders.

The   impugned   order   dated   21st   December, 
10.
2011,  which  is  now before  this  Court,  shows  that 
the   trial   Court   has   given   opportunity   to   both 
sides to lead evidence and discussed the evidence 
of   each   of   the   witnesses   examined.   Material   is, 
whether the compromise Exhibit 16 which was filed 
and recorded by the Court was out of free will or 

not.  Learned  counsel  for the Respondent­Defendant 
has   taken   me   through   the   evidence   of   Plaintiff 
herself, whose cross­examination shows that she is 
aware   of   the   worldly   affairs.   She   can   read   and 
write Marathi language (The compromise Exhibit 16 
is   also   in   Marathi   language).   Her   cross­
examination shows that she has transacted earlier 
with   the   Bank   for   taking   loan   and   regarding 
purchase  of plot  and  that she  had negotiated   for 
selling   the   plot.   Thus,   learned   counsel   for 
Respondent submitted that  Plaintiff is conversant 
with   handling   documents.   Cross­examination   of 
Plaintiff has been referred by the learned counsel 
further to point out that Plaintiff was attending 

the   Court   on   every   hearing   and   she   had   herself 
provided   information   to   her   Advocate.   There   were 
talks   between   her   and   Defendant   No.2   about 
compromise which talks were going on for one year. 
Her   daughter   Soni   was   acquainted   with   the   talks. 
Plaintiff   admitted   in   the   cross­examination   that 
the   compromise   deed   was   drafted   2­3   days   before 

the same was filed in the Court and she had given 
copy   of   the   compromise   to   her   Advocate   Mr. 
Sonawane  also. Her cross­examination  reveals  that 
she   and   her   Advocate   Mr.   Sonawane   had   discussed 
the   terms   of   the   compromise   and   she   herself   had 
filed   compromise   before   the   Court.   She   admitted 
that   the   Court   did   ask   her   about   the   terms   of 
compromise and she did admit   the contents of the 
compromise. She admitted that it was mentioned in 
the   compromise   that   the   Defendant   No.2   will   pay 
Rs.2,10,000/­   (Rupees   Two   Lakh   Ten   Thosuand)   to 
her within six months. She admitted that according 
to   the   compromise,   Defendant   No.2   had   deposited 
Rs.2,10,000/­   (Rupees   Two   Lakh   Ten   Thosuand)   in 

the Bank. She stated that she does not know if her 
daughter   Asha   had   already   withdrawn   Rs.70,000/­
(Rupees   Seventy   Thousand)   from   the   Bank.   She 
accepted  that  she does  not  have any  dispute  with 
her   daughter   Asha.   In   the   cross­examination,   at 
one place she stated that it is not true that she 
knowingly filed compromise in the Court but again 

volunteered   that   she   had   knowingly   filed 
compromise in the Court.
Learned   counsel   for   Respondent   referred 

to the above evidence of Plaintiff to submit that 
the   cross­examination   itself   shows   that   the 
Plaintiff   was   totally   aware   of   the   contents     of 
the compromise and had voluntarily filed the same 
and there was no coercion or pressure on her. She 
had   discussed   the   contents   with   her   own   Advocate 
and  also  admitted  that  the  Court  did explain   the 
terms   of   the   compromise   to   her   and   she   accepted 
the   same.   According   to   the   learned   counsel,   when 
this  is so,  there  does  not remain  anything  else. 

The   Court   had   properly   verified   and   recorded   the 
11.
compromise. 
Learned   counsel   for   Respondent   further 
referred to the evidence of Asha, the daughter of 
Plaintiff   to   who   she   herself   examined   as   witness 
No.5.   He   submitted   that   although   the   part   of 

affidavit   as   examination­in­chief   tried   to   put 
blame   on   the   Defendant,   still   the   cross­
examination   of   Asha   also   goes   to   show   that   the 
compromise   was   voluntary   and   duly   executed.   The 
learned  counsel  referred  to the  cross­examination 
of   Asha   where   she   stated   that   in   the   suit   there 
was   compromise   between   her   mother   and   Defendants 
and   that   the   concerned   compromise   was   discussed 
between the sisters and the mother i.e. Plaintiff 
and it was recorded by consent. Asha also deposed 
that   after   the   compromise,   her   mother,   i.e. 
Plaintiff   filed   the   compromise   in   the   Court   and 
that   the   compromise   was   as   per   what   was   decided 
between   the   parties.   She   also   admitted   that   the 

contents   of   the   compromise   were   read   by   the 
sisters   and   Plaintiff.   Her   evidence   shows   that 
Defendant   had   sent   letter   on   21st  June,   2008   and 
called   them   to   Kedarnath   Bank,   however   she   alone 
went   to   the   Bank   and   Defendant   transferred   Rs.
70,000/­ (Rupees Seventy Thousand) in term deposit 
in her name. Concerned form had been filled up and 

she had signed the same. She admitted that on 16th 
January,   2009   she   again   went   to   the   Bank   and 
opened her savings bank account  and from the term 
deposit, she got the money transferred to savings 
account  and she  withdrew   the money  for  using  the 
same for her marriage.
.
Learned   counsel   referred   to   the   above 
evidence of Asha to argue that if the evidence of 
Plaintiff and her daughter Asha are read together, 
it   is   quite   clear   that   there   is   no   substance   in 
the   grievance   being   made   by   the   Plaintiff   after 
the   compromise   was   recorded   by   the   Court   on   2nd 
January,   2008,   that   the   same   was   not   willful   or 

that   the   same   was   product   of   cheating.   He 
submitted   that   Asha   is   educated   up­to   12th 
Standard and Plaintiff had no dispute with her and 
there   is   no   reason   to   disbelieve   witness   of 
Plaintiff herself.
Learned   counsel   for   Respondent   also 
12.

referred   to   the   evidence   of   Advocate   Mr.   Sunil 
Sonawane   who   was   the   Advocate   of   Plaintiff   but 
called   for   evidence   by   Defendants.   According   to 
the learned counsel, the evidence of the Advocate 
also   shows   that   the   Plaintiff   was   explained   the 
contents   and   she   was   aware   as   to   what   she   was 
doing. According to the learned counsel, there is 
no reason to disbelieve the Advocate who has been 
practicing   since   1990.   It   is   submitted   by   the 
learned   counsel   for   Respondent­Defendant   that 
Umakant   Ramkisan,   the   witness   called   by   the 
Plaintiff from the Bank also has brought on record 
the fact that the Defendant had kept Rs.2,10,000/­ 
(Rupees Two Lakh Ten Thousand) in his account and 

that   the   Defendant   on   21st  June,   2008  transferred 
amount in term deposit in the name of daughter of 
Plaintiff. 
13.
I   have   gone   through   the   reasonings 
recorded   by   the   trial   Court   while   discussing   the 
evidence.   Learned   counsel   for   Applicant­Plaintiff 

submitted that the observations of the trial Court 
that Defendant had kept Rs.2,10,000/­ (Rupees Two 
Lakh Ten Thousand) in fixed deposit in the name of 
Plaintiff and her two daughters was not correct if 
the   evidence   of   the   employee   from   the   Bank   is 
perused.   However,   this   is   not   material   for   the 
purpose   of   deciding   the   present   matter.   In   the 
present matter, material is, whether the Plaintiff 
who   had   filed   compromise   herself,   had   understood 
the same and if it was filed by free will. If the 
evidence as pointed out by the learned counsel for 
Respondents   is   perused   and   the   reasonings   of   the 
trial Court are considered, I do not find there is 
anything   illegal   or   irregular   in   the   findings 

arrived   at   by   the   trial   Court   that   indeed 
compromise between the parties had taken place as 
is   recorded   in   Exhibit   16   and   that   the   same   was 
out   of   free   will   and   consent   and   there   was   no 
coercion or undue influence on the Plaintiff. The 
same   was   duly   verified,   admitted   and   recorded 
before Court. I do not find any reason to differ 

from  the  findings  arrived  at by the  Civil  Judge, 
Senior Division, Latur.
Rulings relied on by the learned counsel 
14.
for   Applicant­Plaintiff   are   based   on   their   own 
facts.   Present   matter   has   to   be   decided   on   the 
basis   of   its   own   facts.   The   suit   was   already 
withdrawn   as   far   as   regards   Defendant   No.1   was 
concerned and application Exhibit 19 filed by the 
Plaintiff   did   not   seek   to   withdraw   the   said 
purshis   Exhibit   17.   The   compromise   recorded 
existence   of   facts   regarding   Will   in   favour   of 
Defendant   No.2   and   that   due   to   relationship 
Defendant   No.2   has   agreed   to   pay   amount   and   to 

compromise   the   matter.   The   contents   do   not   show 
that   it   is   unlawful   compromise.   When   it   was 
prepared   and   Plaintiff   discussed   it   with   her 
daughters   and   Advocate   and   herself   tendered   it 
before   Court   and   admitted   contents   read   over 
before Court, subsequent retracting (before formal 
Order   below   Exhibit   1   decreeing   the   suit)   cannot 

be   accepted.   Proceedings   before   Court   are   solemn 
proceedings   and   after   the   compromise   is   duly 
recorded, retracting vide application like Exhibit 
19   claiming   that   it   was   not   read   over,   is 
contemptuous. In evidence she admitted that Court 
asked   her   about   the   terms   of   compromise   and   she 
admitted   contents.   Trial   Court   has   thus   properly 
rejected subsequent retracting and decreed suit as 
compromised.   The   impugned   order   dated   21st 
December,   2011   in   Regular   Civil   Suit   No.151   of 
2007 passed by Civil Judge, Senior Division, Latur 
does   not   call   for   any   interference   and   the 
directions to record the compromise and decree the 
suit need not be interfered with.

There   is   no   substance   in   the   Civil 
15.

Revision   Application.   The   Civil   Revision 
Application is rejected with costs.
                               [A.I.S. CHEEMA, J.] 

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