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2021 (6) TMI 1140 - SC - Indian Laws


Issues Involved:
1. Validity and enforceability of the compromise decree dated 06.08.1984.
2. Whether the suit O.S.No.1101 of 1987 is barred by Order XXIII Rule 3A of CPC.
3. Entitlement to shares in the residential building at Tatabad.

Issue-wise Detailed Analysis:

1. Validity and Enforceability of the Compromise Decree Dated 06.08.1984:
The appellants challenged the compromise decree dated 06.08.1984 in Suit No.37 of 1984, claiming it was obtained through fraud and misrepresentation. They argued that the decree was unfair and inequitable, alleging that Janakiammal, who was a party to the suit, was unaware of the compromise application or its terms, and that she signed the papers under misrepresentation. The decree allotted only shares of a sick mill to Janakiammal and her son, Somasundaram, without any immovable property, which was claimed to be unfair given the family’s substantial assets. The respondents contended that the compromise was signed by all parties, including Janakiammal, and that the properties were divided according to an arrangement made in 1981. The High Court concluded that the compromise decree was valid, and the plaintiff failed to prove any fraud or misrepresentation.

2. Whether the Suit O.S.No.1101 of 1987 is Barred by Order XXIII Rule 3A of CPC:
The trial court and the High Court both held that the suit O.S.No.1101 of 1987 was barred by Order XXIII Rule 3A of CPC, which prohibits a separate suit to set aside a decree on the ground that the compromise on which the decree is based was not lawful. The courts emphasized that the proper remedy for challenging the compromise decree was to approach the court that recorded the compromise, not to file a separate suit. The Supreme Court upheld this view, stating that the legislative intent behind Rule 3A was to prevent multiplicity of litigation and to ensure that any challenge to a compromise decree should be made in the same court that recorded it.

3. Entitlement to Shares in the Residential Building at Tatabad:
The appellants claimed a share in the residential building at Tatabad, which was not included in the compromise decree dated 06.08.1984. They argued that the property, although in the name of defendant No.1, was purchased from joint family funds and thus belonged to all three branches of the family. The respondents contended that the property was purchased by defendant No.1 individually. The Supreme Court found that the property was indeed purchased from the funds of Swamy and Swamy Plantations, a company owned by the family, and that all three branches had shares in the company. The Court concluded that the property was a joint family property and that all three branches were entitled to a 1/3rd share each in the property. Consequently, a preliminary decree for partition was ordered for the Tatabad property.

Conclusion:
The Supreme Court partly allowed the appeals, decreeing that the residential property at Tatabad was a joint family property and ordering a partition of the property among the three branches of the family. The suit O.S.No.1101 of 1987 was otherwise barred under Order XXIII Rule 3A of CPC, and the challenge to the compromise decree dated 06.08.1984 was not entertained. The parties were directed to approach the trial court for passing an appropriate final decree regarding the partition of the Tatabad property.

 

 

 

 

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