Builder Must Build 11 Villas For Two Landowners Within 30 Months Under Karnataka HC Consent Decree, With ₹1 Crore Deposit Forfeited

The appellants brought a commercial appeal under Section 13(1-A) of the Commercial Courts Act, 2015, challenging the order dated 8 July 2026 in Com.A.A. No. 27/2026.

During the appeal, the parties reached an amicable settlement and jointly filed a compromise petition under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908. The petition was signed by the parties and their counsel; the parties appeared, were identified by counsel, and confirmed that their consent was voluntary.

The compromise provided, among other things, for the respondent to construct 11 villas allocated to the appellants, payment of compensation, and the parties’ continuing obligations under their agreements.

Section 13(1-A) of the Commercial Courts Act, 2015, provided the basis for the commercial appeal.

Order XXIII Rule 3 of the Code of Civil Procedure, 1908, permits a court to record a lawful compromise in writing and signed by the parties and pass a decree in accordance with it; Section 151 CPC preserves the court’s inherent powers.

The Court recorded that the compromise petition was jointly presented, supported by an affidavit, and signed by the parties and their respective counsel.

After identifying and interacting with the parties, the Court was satisfied that they had consented without force, coercion, or undue influence and sought a decree on those terms. On that basis, it took the compromise petition on record and disposed of the appeal in accordance with its terms.

The appeal was accordingly disposed of.