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Ajad Singh Alias Ajad v. Chatra And Others

Supreme Court Of India
Feb 14, 2005
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Factual and Procedural Background

The appellant, Ajad Singh, along with his brothers Dilawar Singh @ Dilbag Singh and Silak Ram (pro forma Respondents 4 and 5), filed a civil suit seeking: (i) a declaration of their right, title and interest in certain land; (ii) possession and removal of alleged encroachments erected by Respondents 1–3; and (iii) a permanent injunction restraining interference with their possession. The appellant claimed the land came to the brothers through a family partition.

Respondents 1–3 denied the appellant’s title, asserted 60 years’ possession ripening into ownership by adverse possession, and relied on a purported compromise dated 14-10-1985 executed in a police station.

The trial court appointed a Commissioner, evaluated the evidence, rejected the compromise, and decreed the suit in favour of the appellant. On appeal, the Additional District Judge reversed the decree, holding the compromise (Exh. D-1) binding and fatal to the appellant’s claim. The High Court dismissed the appellant’s second appeal in limine, concurring with the first appellate court.

The appellant sought special leave before the Supreme Court, which issued notice limited to whether the matter should be remanded to the first appellate court for fresh consideration.

Legal Issues Presented

  1. Whether the alleged compromise dated 14-10-1985, executed during the pendency of the suit, was valid and enforceable in the absence of compliance with Order 23 Rule 3 of the Code of Civil Procedure (CPC).
  2. Whether the first appellate court erred in concluding that the plaintiff had not raised appropriate pleadings to challenge the compromise.
  3. Whether failure to frame a specific issue on the compromise and to consider requirements of stamping or registration rendered the appellate judgment unsustainable.
  4. Whether these deficiencies warranted remand of the matter to the first appellate court for fresh adjudication.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court identified multiple legal deficiencies in the judgments of both the first appellate court and the High Court:

  • Non-compliance with Order 23 Rule 3 CPC: Any compromise affecting the subject-matter of a pending suit must be recorded and verified by the court. The lower courts entirely overlooked this mandatory procedure, vitiating their reliance on Exh. D-1.
  • Inadequate pleadings and issues: The written statement merely made a bald reference to the compromise. The plaintiff’s general denial sufficed in law, yet the first appellate court faulted him for lack of specific pleadings. Moreover, no issue was framed on the compromise, contravening procedural requirements.
  • Context of the compromise: The document was executed in a police station while the suit was pending, raising concerns about voluntariness and judicial scrutiny.
  • Stamping and registration: The appellate court failed even to consider whether the document, written on plain paper, required stamping or registration.

Collectively, these omissions persuaded the Supreme Court that the findings of the first appellate court, affirmed summarily by the High Court, could not stand and necessitated a remand for de novo consideration in accordance with law.

Holding and Implications

Holding: The Supreme Court ALLOWED the appeal, set aside the orders of the High Court and the first appellate court, restored Civil Appeal No. 376 of 1999 on the file of the District Judge, Panipat, and remitted it for rehearing and fresh decision. No order as to costs was made.

Implications: The decision reopens the first appeal, requiring the District Judge (or a competent court) to decide it afresh after properly addressing Order 23 Rule 3 CPC, framing appropriate issues, and considering the validity of the compromise document. The Court did not lay down new substantive law but underscored the mandatory nature of procedural safeguards governing compromises during litigation.

Show all summary ...

P.P Naolekar, J.— Leave granted.

2. The appellant Ajad Singh had filed a suit for declaration and possession of his right, title and interest over the suit property along with Dilawar Singh @ Dilbag Singh and Silak Ram pro forma Respondents 4 and 5 and for mandatory injunction against Respondents 1, 2 and 3 for removal of superstructures raised by them over the suit lands and for restraining them from interfering with the possession of the appellant. The case of the plaintiff-appellant is that he and Respondents 4 and 5 are real brothers and the property in suit came to them in partition effected between them and their uncle Puran. That Respondents 1, 2 and 3 had encroached upon the suit lands on 2-1-1985 by storing some pucca bricks on the suit land and thereafter had raised some construction over it. The defendant-respondents had not vacated the land in spite of demand by the plaintiff-appellant. The defendant-Respondents 1, 2 and 3 filed their written statements denying the right, title and interest of the appellant over the suit land and claimed that they were in possession of the suit land for the last 60 years which had ripened into ownership by way of adverse possession and the construction made over the land was in exercise of that right. It was further alleged that the appellants as well as Respondents 4 and 5 had admitted the possession of Respondents 1, 2 and 3 of the suit property vide compromise dated 14-10-1985 and thus the appellant was prevented by his acts and conduct to pursue the present suit.

3. The trial court appointed a Commissioner for inspection of the suit site and to record the evidence of the parties. On the appreciation of the evidence led by the parties and the report of the Commissioner, the trial court decreed the suit filed by the appellant. Aggrieved by the said decree, Respondents 1, 2 and 3 filed an appeal which was heard by the Additional District Judge, Panipat. The first appellate court reversed the decree by placing reliance on the compromise (Exhibit D-1) dated 14-10-1985 which was said to have been effected between the parties in the police station. In para 9 of the judgment, the Court held that the compromise (Exhibit D-1) dated 14-10-1985 was a very relevant piece of evidence which admittedly had been signed by Ajad Singh but about which no such plea had been raised by the appellant either in the amended plaint or in the replication filed by him on 4-6-1987 as would enable him to avoid the compromise. There was also no pleading from the plaintiff-appellant's side that the said compromise (Exhibit D-1) was obtained by the police forcibly. He had not stated anything about the compromise in his examination-in-chief and only in the cross-examination he stated that the compromise was effected by use of force in the police station. On perusal of the compromise, the Court further held that both the sides had resolved the dispute and Respondent 1 could remain in possession of suit property, as, according to the compromise, the appellant had already relinquished the right over the site in dispute on 14-10-1985 (Exhibit D-1) itself. Thus, it was made out that the trial court had wrongly rejected the said compromise (Exhibit D-1) by observing that no such permission was obtained to effect the compromise in the police station. The Court further summarised the effect of compromise that the appellant had relinquished his right in the suit land in view of the settlement (Exhibit D-1) dated 14-10-1985 itself and about which he remained mum and knowingly concealed this fact in the pleadings. Thus, after the examination of the said compromise (Exhibit D-1), it was made out that the plaintiff-appellant agreed to withdraw the suit and conceded that Chatra, Defendant 1 would continue to remain in possession of the suit property. On these findings the judgment and decree of the trial court was set aside and the so-called compromise (Exhibit D-1) was held to be binding on the parties.

4. The appellant preferred a second appeal before the High Court which was dismissed in limine. The High Court has reproduced paras 8 and 9 of the judgment of the lower appellate court and concurred therewith dismissing judgment of the trial court expressing an opinion that the reasons given by the first appellate court for dismissing the suit are much weighty, as compared to the reasons given by the trial court, which committed a patent illegality in decreeing the suit.

5. In this petition seeking leave to appeal preferred by the appellant before this Court, a notice, limited to the question as to why the matter be not remanded back to the first appellate court for decision afresh, was issued.

6. We have heard the learned counsel for the parties and we are satisfied that the case deserves to be remanded to the first appellate court for the reasons stated hereinafter. The High Court as well as the first appellate court have not adverted to the various relevant and important aspects of the case while deciding the matter. And, this we say for the several reasons which follow. First, the provision contained in Order 23 Rule 3 CPC has been completely overlooked. On the date on which the compromise (Exhibit D-1) is alleged in the written statement to have been entered into between the parties, the suit relating to the property forming the subject-matter of the compromise was pending in the court. The suit could not have been disposed of except by recording the compromise and that too by following the procedure, and recording the satisfaction, contemplated by Rule 3 of Order 23 CPC. Secondly, the first appellate court was not justified in observing that the plaintiff had not raised necessary pleadings either in the plaint or in the replication disputing the factum and legality of the compromise. From a perusal of the written statement, we find that necessary pleadings satisfying the requirement of Order 23 Rule 3 CPC have not been raised in the written statement. The written statement makes only a bald reference to the said compromise dated 14-10-1985. The plaintiff can be safely assumed to have denied all the averments made in the written statement. Also, we find from the judgment dated 5-10-1985 of the trial court that no specific issue was framed on the pleading raised by the defendant regarding the said compromise dated 14-10-1985. The appellate court ought to have taken note of the fact that the said compromise was recorded in the police station and during the pendency of the suit. Thirdly, the first appellate court ought to have been conscious of the fact that the said compromise is on a plain piece of paper, and so, whether such document was required to be stamped or registered or not. Be that as it may, in our opinion, the very fact that the courts below have overlooked the provisions of Order 23 Rule 3 CPC is sufficient to vitiate the judgment and the matter needs to be remanded for consideration afresh.

7. The appeal is allowed. The order dated 26-9-2001 of the High Court dismissing the second appeal in limine as well as the judgment and decree passed by the first appellate court are set aside. The first appeal being Civil Appeal No. 376 of 1999 shall stand restored and is remitted to the District Judge, Panipat for rehearing and deciding it afresh either by himself or assigning it to a court competent to hear it.

8. No order as to the costs.