Order 23 Rule 3A | Bar To Suit Challenging Compromise Decree Not Attracted When Compromise Recorded But Suit Not Disposed: Bombay HC
Live LawThe Bombay High Court recently observed that bar under Order 23 Rule 3A of the CPC on a suit against a compromise decree is not attracted when a compromise is merely recorded in the earlier suit but the suit is not yet disposed.A division bench of Justice AS Chandurkar and Justice Jitendra Jain allowed an appeal against a trial court order declaring a suit non-maintainable observing that. The Bombay High Court recently observed that bar under Order 23 Rule 3A of the CPC on a suit against a compromise decree is not attracted when a compromise is merely recorded in the earlier suit but the suit is not yet disposed. “It is thus clear from the record that there was no decree passed on 4th July, 1995 based on compromise as stated to be recorded below Exhibit-53 in SCS No.268/1978, when the Trial Court proceeded to hold that the subsequent suit was not maintainable in view of the provisions of Order XXIII Rule 3A of the Code. The court further noted that the earlier suit of 1978 was decided much after the Trial Court held the subsequent of 1994 not maintainable under Order 23 Rule 3A.