Parties’ Compromise in Second Appeal Is Recorded as a Decree Executable According to Its Terms.

The respondent had sued for possession of four acres in Survey No. 47/1A at Sirnoor, alleging entitlement to the property.

The trial court dismissed the suit; the first appellate court partly allowed the respondent’s appeal and decreed recovery of three acres, prompting the defendants’ second appeal.

During the second appeal, the parties entered into a mediated compromise. The appellants agreed to pay the respondent ₹1.70 crore in instalments in full and final settlement of his claims concerning the land.

The parties were present before the High Court; the Court accepted the daughter’s special power of attorney in favour of her brother, and the appellants handed over a demand draft for ₹25 lakh, which the respondent acknowledged receiving.

1. Whether the parties’ compromise could be accepted and the second appeal disposed of in its terms.

2. Whether the decree should provide for recovery of the agreed settlement amount in the event of non-compliance with the payment schedule.

Order XXIII Rule 3 of the Code of Civil Procedure, 1908, provides for recording a lawful compromise in writing and signed by the parties, and for passing a decree in accordance with it.

The appeal was brought under Section 100 read with Order XLII Rule 1 CPC.

The Court cited no precedents and did not independently decide the underlying title or limitation questions; those matters were addressed through the parties’ agreed terms.

The Court found it just and reasonable to dispose of the appeal in accordance with the parties’ compromise, noting their presence and the respondent’s receipt of the first instalment of ₹25 lakh.

The compromise specified the remaining instalments and provided that the respondent could execute the decree to recover the agreed amounts in the event of default.

The Court accepted the settlement and directed the Registry to draw the decree accordingly.

The compromise provides for payment of ₹1.70 crore in instalments, with execution available to recover amounts in the event of non-compliance; the parties were to bear their own costs.