Thursday, 24 July 2014

Whether case can be compromised after deleting one of plaintiff without his consent?



  In order to avoid this situation, it appears that the remaining 
Plaintiffs sought deletion of the name of Respondent no.1 and other 
Plaintiffs     and   accordingly   that   was   permitted.     It   is   obvious   that 
name of Plaintiff No.6 i.e. present Respondent no.1 could not have 
been allowed to be deleted without his consent.   In case majority 
demanded that his name should be deleted, & if he was not acting as 
per   wish   of   majority,   at   the   most   a   step   to   transpose   him   as 
Defendant   could   have   been   taken.     In   that   event   the   trial   Court 
would have been required to find out nature of his grievances. Suit 
could   have   been   split   into   two   Suits.   All   this   exercise   is   not 

undertaken by the trial Court. The Suit instituted by several Plaintiffs 
deleting name of Respondent no.1.
as per Order I Rule 1 and 2 C.P
.C. could not have been disposed of by 

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
APPELLATE CIVIL JURISDICTION
APPEAL FROM ORDER  NO.799 of 2008
Ramesh Balaji Ekhande ...

Vs

 Namdeo Ganpat Gite

CORAM :  B.P
.DHARMADHIKARI, J
 DATE:       17   October, 
   th 
  2012
 Citation: 2013(1)ALLMR111, 2013(2)BomCR241, 2013(1)MhLj135

  

Heard   Mr.Thorat   learned   Counsel   for   the   Appellant   and 
Mr.Nighot for Respondent No.1.
2.
A   short   contention   of   Advocate   Thorat   on   behalf   of   the 
Appellant (Original Plaintiff No.5) is that the impugned Judgment 
dated 17.3.2008 passed by the District Judge 3 Nasik in Civil Appeal 
No. 125 of 1996 remitting the controversy back to the trial Court is 
perverse and shows total non­application of mind.  He submits that 
the   Appeal   arises   out   Special   Civil   Suit   No.57   of   1990  which   has 
been disposed of finally on 1.2.1996 after recording of compromise. 
Thus, against the compromise decree Regular Civil Appeal was not 
maintainable.     He   has   taken   the   Court   through   the   relevant 
provisions to substantiate his contentions.  In alternative and only to 

demonstrate that the controversy is now rendered infructuous and 
remand is only an empty formality, he has also invited attention of 
the Court to necessary facts.
3.
   Learned counsel Nighot has submitted that Respondent No.1 
is one of the Plaintiffs and Suit has been disposed of as compromised 
without consent of Respondent no.1 and after deleting him from the 
array of parties. His contention therefore is that decree in Suit is not 

a Consent Decree so far as Respondent No.1 is concerned and as the 
name of Respondent no.1 has been deleted from the array of parties 
as   Original   Plaintiff   impliedly   his   grievance   has   been   dismissed 
without giving him necessary opportunity. He therefore, submits that 
even on that account, order of remand should not be interfered with.
4.         The Suit was instituted by the proposed Cooperative Housing 
Society through its Promoter and the aspirant members for Specific 
performance.   There   was   an   Agreement   entered   into   by   the   land 
owner with the Promoter and members on 31.3.1987 and out of total 
consideration of  Rs.50,000/­, initially an amount of Rs.30,000/­ was 
paid  &   on   8.4.1987, an  amount  of Rs.10,000/­  was also paid.    A 
dispute arose and therefore on 15.2.1990 Special Civil Suit No.57 of 
1990 came to be filed by the Plaintiffs jointly along with proposed 
Cooperative   Housing   Society   seeking   specific   performance   of   that 
contract. During pendency of the Suit on 15.10.1995 the proposed 

Society has passed a Resolution and it decided to prosecute the Suit 
and for that purpose gave Power of Attorney to one of the Plaintiffs 
who   is   the   Appellant   before   this   Court.     Earlier,   said   Power   of 
Attorney was with Respondent  no.1.  Here it needs to be noted that 
Respondent no.1 here contends that his Power of Attorney has not 
been   terminated   and   he   is   also   disputing   the   fact   of   passing   of 
Resolution on 15.10.1995.  However, these facts are not relevant at 
this stage for adjudication of the present A.O. Hence, no conclusive 

findings on these aspects need to be recorded.
5.      On 21.12.1995 Plaintiffs filed an Application seeking deletion 
of the name of present Respondent No.1 as Plaintiff no.1 from the 
array of parties.   They pointed out that the Resolution mentioned 
above and Power of Attorney executed in favour of present Appellant 
and also   demand of additional amount of Rs,18,000/­ from each 
member and its non­fulfillment by Respondent  no.1. The trial Court 
has   allowed   that   deletion   and   on   the   very   same   day   Purshis   for 
Compromise was also filed. The said Purshis was also opposed by 
present Respondent no.1 by filing purshis at Exhibit 73.
6.           According   to   Respondent   no.1   deletion   was   sought   on   the 
ground that he had resigned but, no document to substantiate such 
resignation   or   its   acceptance   by   any   Resolution   was   filed.   On 
15.1.1997 Respondent no.1 sought his restoration back as Plaintiff 

but, that was rejected by an Order dated 25.1.1996. The Respondent 
no.1 then sought stay of that order.  But that was also rejected and 
after   all   these   developments   on   1.2.1996  compromise   came   to   be 
recorded.
7.           Appeal   filed   by   the     Respondent     No.1/Original   Plaintiff 
challenging the decree passed in Special Civil Suit is under section 
96 of C.P
.C. in this background. The Appellate Court has allowed that 
before trial Court.
ig
Appeal on 17.3.2008 by the impugned order and placed matter back 
8.       A perusal of the impugned Judgment reveals the points framed 
by the Appellate Court for its consideration and its determination is 
as under :
  
     Points
                     Findings
1.Whether the impugned compromise decree           Yes
         was obtained by fraud and collusion as alleged?
        2.Whether this is a fit case to remit back ?
         Yes
        3.What order ?
 See final order
9.      The Appellate Court has noticed that Plaintiff No. 5 claiming to 
be the General Power of Attorney Holder had filed an Application at 
Exhibit 67 under Order 6 Rule 17 C.P
.C. on 21.12.1995 and while 
seeking leave to amend the pleadings also sought deletion of names 

of original Plaintiff Nos.1,6,8,12,18,19,26 and 31  under the pretext 
that they had all resigned. Plaintiff no.6 is present Respondent no.1. 
The Appellate Court had noticed the grievance that without calling 
for the say of concerned Plaintiff, the trial Court called for say by the 
Defendants and then Defendants' Counsel gave no objection and and 
because of that no objection, amendment was allowed on 21.9.1998 
itself.   It has then noted that Compromise Purshis was also filed on 
that day. It noted the contention of present Appellant that he had 

Power of Attorney and its attention was also called to a resolution 
passed   by   the   General   body.     The   Appellant   before   the   lower 
Appellate   Court   has   informed   there   was   no   such   reference   to 
resignation in Resolution produced.  It has then recorded  its reasons 
for allowing the Appeal and remitting the matter back to the trial 
Court.
10.     The scope of the Appeal from Order is very limited and the 
parameters to be applied are akin to one under section 100 of C.P
.C. 
The   Suit   was   filed   jointly   by   several   Plaintiffs.   The   proposed 
Cooperating Housing Society who was joined as Plaintiff no.1 in that 
Suit is even today is only proposed Housing Society. It has therefore 
not become a legal person at all. It appears that for the said purpose 
to avoid any technical objection as it could have been otherwise a 
Suit   by   an   unregistered   Association   of   persons,the   proposed 
members   of   the   Cooperative   housing   society   were   also   joined   as 

Plaintiffs   in   individual   capacity.     The   Plaintiffs   therefore   were 
distinctly interested in reliefs to be granted by the trial Court.   The 
consideration of the Appellate Court shows that the Suit has been 
disposed of by the trial Court as compromised after deleting names 
of some of the Plaintiffs at the instance of remaining Plaintiffs. When 
there   was   no   legal   person   in   existence,   the   Power   of   attorney 
executed   in   favour   of  one   of  the  Plaintiff  by  others  or  then  steps 
taken by some of the Plaintiffs could not have been presumed to be 

valid against Plaintiffs who were opposing such steps. 
11.     The trial Court could have at the most disposed of the part of 
grievances of Plaintiffs as compromised and the entire grievances in 
Suit  could not have been disposed of.
12.       In order to avoid this situation, it appears that the remaining 
Plaintiffs sought deletion of the name of Respondent no.1 and other 
Plaintiffs     and   accordingly   that   was   permitted.     It   is   obvious   that 
name of Plaintiff No.6 i.e. present Respondent no.1 could not have 
been allowed to be deleted without his consent.   In case majority 
demanded that his name should be deleted, & if he was not acting as 
per   wish   of   majority,   at   the   most   a   step   to   transpose   him   as 
Defendant   could   have   been   taken.     In   that   event   the   trial   Court 
would have been required to find out nature of his grievances. Suit 
could   have   been   split   into   two   Suits.   All   this   exercise   is   not 

undertaken by the trial Court. The Suit instituted by several Plaintiffs 
deleting name of Respondent no.1.
as per Order I Rule 1 and 2 C.P
.C. could not have been disposed of by 
13.    In view of this position, I do not see any jurisdictional error or 
perversity   in   the   approach  of   the  Appellate  Court.     The  Appellate 
court has rightly remitted the matter back to the trial Court for its 
proper   consideration.     Various   questions   which   arose   because   of 
 It is also apparent that in this situation act of the trial Court in 
14.

deletion as sought need to be addressed to by the trial Court itself. 
dismissing   Suit   of   the   Plaintiff   indirectly   because   of   compromise 
entered into by other Plaintiffs with landlord cannot be sustained. 
The   Respondent   no.1   (Plaintiff   no.6)   was   not   a   willing   party   to 
compromise. This is also apparent from the Application moved by 
him on 25.1.1996 vide Exhibit 77 and 80. The decree passed by the 
trial  Court  therefore, cannot  be  presumed to be  a Consent  decree 
against which an Appeal is barred under section 96 (3) of C.P
.C.  The 
said sub­section prohibits Appeal from decree which is passed by the 
trial Court “with Consent of the parties”. Here, Respondent no.1 has 
not given any such consent and at the time of passing of decree he 
was not party to the Suit and therefore this bar is not relevant.
15.
  Mr.Thorat in order to substantiate his stand had also invited 

attention   to   provisions   of  Order   43  Rule   1  of   C   P     However,   it 
.C.
appears that before 1976 Amendment to C.P
.C. an Appeal against the 
order of trial Court recording compromise was permitted.  By 1976 
amendment that clause has been deleted.   Because of that deletion 
only simultaneously Rule 1­A has been added and in it the Law has 
permitted   non­appealable   orders   to   be   challenged   when   a 
substantive   Appeal   is   filed   against   a   decree.     By   way   of   further 
clarification   there   is   sub­rule   2   which   envisages   Appeal   against 
ig
decree   passed  in  Suit   after   recording  of   compromise.    In  such  an 
Appeal   the   Appellant   is   permitted   to   contest   the   decree   on   the 
ground that compromise should not have been recorded.  Therefore, 
it   clearly   shows   that   Appeal   filed   by   the   Respondent   no.1   under 
section   96   of   CPC   was   legally   tenable   and   has   been   rightly 
entertained by that Court.  The Appeal was against a decree passed 
in Suit after recording of compromise and he contested the decree on 
the ground that compromise should not have been recorded.  
16.   In this situation as the matter has been rightly remanded back 
by the Appellate Court to the trial Court for its proper consideration, 
I find that no prejudice is caused to the parties.
17.   During hearing, my attention has been invited to Order passed 
by   the   Appellate   Court   on   19.11.1997   directing   the   Respondents 
before it (Plaintiffs) to keep one plot reserved for Respondent no.1. 

This direction held the field till the Appeal was decided and matter 
was remanded back.     Mr.Nighot submitted that even today plot is 
vacant and kept reserved for the present Respondent no.1.  Whether 
the plot is available or not is not very relevant at this stage. The lis 
presented before the trial Court in the year 1999 still survives and 
need to be answered either way.  It cannot therefore be said that due 
to passage of time the controversy is rendered infructuous. Remand 
therefore, cannot be said to be an empty formality.  No case is made 

out   warranting   interference   by   this   Court.   Appeal   from   Order 
rejected.
18.       The   Appellate   Court   has   expedited   the   proceedings   after 
remand.  The time period prescribed therein shall begin to run after 
this Judgment is communicated to the trial Court. 
19.     Parties before this Court are directed to appear before the trial 
Court on 26.11.2012. 
         Pending C.As disposed of as redundant. 
(B. P
. Dharmadhikari, J)


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