top of page
Judge Gavel
Search

Order 23 Rule 3 CPC: Remedy Against Compromise Decree Lies in Recall Application

Writer's picture: Legal Soch FoundationLegal Soch Foundation
2 min read

The Supreme Court has clarified that the only remedy against a compromise decree under Order 23 Rule 3 of the Civil Procedure Code (CPC) is to file a recall application before the court that recorded the compromise. The ruling reinforces the procedural requirements for challenging compromise decrees and eliminates alternative remedies through appeals or separate suits.


A bench of Justices Sanjay Kishan Kaul and Sudhanshu Dhulia ruled on a matter where the petitioner sought to challenge a compromise decree on the grounds of fraud and misrepresentation. The Court held that a party alleging such grounds must approach the same court that recorded the compromise, as it retains jurisdiction to recall the decree if the compromise is found to be invalid.


The Court emphasized that this procedural safeguard ensures judicial consistency and prevents forum shopping. It noted that the jurisdiction to decide the validity of a compromise decree lies exclusively with the court that sanctioned it, as stipulated under Order 23 Rule 3 CPC.


The judgment also highlighted the distinction between a compromise decree and other decrees, underscoring that compromise decrees are unique as they are based on mutual agreements between parties. Any challenge to such agreements must first be addressed by the court familiar with the case details.


The Supreme Court’s ruling aims to streamline the procedural framework for addressing grievances related to compromise decrees. It also serves as a warning against frivolous attempts to delay or derail enforcement by seeking remedies in inappropriate forums.


This judgment reaffirms the importance of adhering to established legal processes while providing parties with a specific and efficient mechanism to address disputes arising from compromise decrees. The ruling is expected to reduce unnecessary litigation and promote judicial efficiency.





Recent Posts

See All
bottom of page