Compromise in Civil Suit Challenged: Supreme Court Remands Case to High Court

The case of Ved Pal (D) through LRs & Ors. vs. Prem Devi (D) through LRs & Ors. revolves around a dispute over a civil suit that was disposed of based on an alleged compromise between the parties. The appellants approached the Supreme Court, challenging the Punjab & Haryana High Court’s order that decreed the suit based on a settlement.

Background of the Case

The dispute originated from a civil suit seeking a declaration and permanent injunction. The matter escalated to the First Appellate Court and eventually to the Punjab & Haryana High Court. However, instead of deciding the second appeal on its merits, the High Court disposed of it in terms of a compromise allegedly arrived at between the parties.

The appellants, feeling aggrieved by the High Court’s disposal of their case without considering their objections, filed a review petition. The High Court dismissed the review petition, prompting the appellants to approach the Supreme Court.

Arguments Presented

Appellants’ Argument

• The appellants contended that the compromise was not valid and should not have formed the basis of the High Court’s judgment.
• They argued that they were not properly heard before their rights were affected.
• They emphasized that the manner in which the High Court disposed of the second appeal was improper.

Respondents’ Stand

• The respondents maintained that the compromise was legitimate and binding on all parties.
• They argued that the High Court was correct in passing its decree based on the settlement.

Supreme Court’s Verdict

The Supreme Court, after considering the facts, ruled in favor of the appellants and remanded the case to the High Court. The Court observed:

“Having heard the learned counsel for the parties and on perusal of the record of the case, we are inclined to allow the appeal in part and set aside the order passed in the review petition and permit the appellants to file an application before the High Court for amending their review petition.”

The Court emphasized that the High Court should have properly examined the appellants’ plea. It noted:

“The High Court did not examine the plea of the appellants properly keeping in view the facts alleged in the application and while negativing the attack observed that the appellants are free to take recourse to any other legal remedies.”

The Supreme Court directed the High Court to re-examine the case, considering all grievances raised by the appellants.

Legal Significance

The ruling underscores the importance of procedural fairness in civil litigation. The Supreme Court reaffirmed that compromises in legal disputes must be carefully scrutinized and that parties must have an opportunity to challenge their validity before their rights are affected.

Conclusion

This judgment serves as an important reminder that courts must ensure due process in cases involving alleged settlements. The Supreme Court’s decision to remand the case to the High Court ensures that the matter will be properly examined, allowing the appellants to present their case fairly.

Petitioner Name: Ved Pal (D) through LRs & Ors..
Respondent Name: Prem Devi (D) through LRs & Ors..
Judgment By: Justice Abhay Manohar Sapre, Justice S. Abdul Nazeer.
Place Of Incident: Punjab & Haryana.
Judgment Date: 10-08-2018.

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