R. Rajanna Vs. S.R. Venkataswamy & Ors.
The Code of Civil Procedure, 1908 - Order XXIII Rule (3) , Rule (3-A)
Compromise decree - Challenge as to - In terms of Explanation to Order XXIII Rule 3, the agreement or compromise shall not be deemed to be lawful within meaning of the said rule if the same is void or voidable under Indian Contract Act, 1872 - A suit to set aside a decree on the ground that the compromise on which the decree is based was not lawful - This implies that no sooner a question relating to lawfulness of the agreement or compromise is raised before the Court that passed the decree on the basis of any such agreement or compromise, it is that Court and that Court alone who can examine and determine that question - The Court cannot direct the parties to file a separate suit on the subject for no such suit will lie in view of the provisions of Order XXIII Rule 3A of CPC.
Important Decision(s)- No separate suit required to challenge compromise decree.