High Court Disposes Writ Petition Under Article 227 of Constitution of India, Directs Trial Court to Reconsider Compromise Decree in Ancestral Property Dispute Involving Fraud Allegations

Nature of Litigation: Writ petition under Article 227 of Constitution of India challenging a compromise decree in a civil suit

Remedy Sought

Petitioners sought a writ of certiorari to quash the compromise decree dated 07-03-2025 in OS No. 123/2025

Filing Reason

Petitioners alleged the compromise decree was illegal, arbitrary, and fraudulent as they were not made parties to the suit despite being coparceners in ancestral joint family property

Previous Decisions

Compromise decree passed by Principal Civil Judge, Vijayapura on 07-03-2025 in OS No. 123/2025 based on a compromise petition under Order XXIII Rule 3 CPC

Issues

Whether the compromise decree obtained without making necessary parties can be challenged under Article 227 of Constitution of India Whether the Trial Court should reconsider the compromise decree upon petitioners filing an application

Submissions/Arguments

Petitioners argued the compromise decree was fraudulent and illegal as they were not parties to the suit Petitioners contended the property was ancestral joint family property and mutation entry included their names Respondents allegedly colluded to enter into a sale agreement and obtain the decree behind petitioners' back

Ratio Decidendi

Under Order 23, Rule 3 CPC, the Court must apply judicial mind to ensure compromise is lawful; void or voidable agreements under Indian Contract Act, 1872 are not lawful; Section 96(3) CPC bars appeal against consent decree; deletion of Order 43, Rule 1(m) CPC prohibits appeal against order recording compromise; Order 23 Rule 3A CPC prevents fresh suit; the only remedy is to approach the court that recorded the compromise under proviso to Order 23, Rule 3 CPC

Judgment Excerpts

"This Court in Banwari Lal v. Chando Devi [(1993)1 SCC 581] has laid down the law on the disposal of a proceeding in accordance with a compromise between the parties and on recall of a compromise decree" "The law on the issue is summarised in Pushpa Devi Bhagat v. Rajinder Singh [(2006)5 SCC 566]" "The only remedy available to the aggrieved party is to approach the court that recorded the compromise under the proviso to Order 23, Rule 3"

Procedural History

Suit OS No. 123/2025 filed on 27-01-2025 for specific performance of contract; compromise petition filed under Order XXIII Rule 3 CPC on 06-03-2025; compromise decree passed on 07-03-2025; writ petition WP No. 202339 of 2025 filed under Article 227 of Constitution of India on 14-01-2026; High Court disposed of petition directing Trial Court reconsideration