CRP/1899/2025 of D.SARASWATHI Vs S.Nalina on 30 September 2026

ORDER

This Civil Revision Petition has been filed under Article 227 of the Constitution of India challenging the fair and decreetal order dated 23.10.2024 passed in an unnumbered I.A. filed by the petitioners/defendants 1,3,6 and 7 under Order XXIII Rule 3 of C.P.C., to record the compromise with plaintiffs 1 and 2 and the 8th defendant.

2. Heard the learned counsel for the petitioners and the learned counsel appearing on behalf of the respondents 1 and 2 and carefully perused the

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materials available on record and this Court also carefully went through the order passed by the Court below.

3. The 1st and 2nd respondents are the plaintiffs who filed the suit in O.S.No.60 of 2023 seeking for the relief of declaration to declare that they are entitled for 2/3rd share in the suit properties and for allotment of the same and for declaring four Sale Deeds as null and void and for other consequential reliefs.

4. During the pendency of the suit, the matter was referred to Lok Adalat and the parties decided to enter into a compromise. Accordingly, the terms of settlement was reduced to writing and signed by all the parties and were filed before the Trial Court on 16.10.2023. Apart from the other terms of settlement, one of the terms is that the Sale Deed must be executed with respect to the ‘B’ Schedule properties and accordingly, the Sale Deed was executed and a total sum of Rs.1,76,00,000/- was fixed out of which Rs.1,46,00,000/- was received by the plaintiffs on 19.10.2023. With respect to the balance of Rs.30,00,000/-, it was agreed to be deposited before the Trial Court.

5. On the basis of the Settlement Deed dated 19.10.2023, an Interlocutory Application came to be filed under Order XXIII Rule 3 of C.P.C., originally by the plaintiffs. The application was signed by all the parties to the suit and their

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respective counsel. However, all of a sudden, the plaintiffs, after receiving the sum of Rs.1,46,00,000/- did not turn up before the Trial Court. In view of the same, a complaint was given to the police, which resulted in the registration of the FIR in Crime No.17 of 2024.

6. The petitioners filed an Interlocutory Application under Order XXIII Rule 3 of C.P.C., to pass a decree based on the settlement between the parties. This application was dismissed by the Court below even without numbering the same. Aggrieved by the said order, the present Civil Revision Petition has been filed before this Court.

7. In the case in hand, as per the terms of settlement entered into between the parties, the petitioners are claiming that a huge sum of Rs.1,46,00,000/- was handed over to the plaintiffs. In fact, the plaintiffs have originally filed an application Order XXIII Rule 3 of C.P.C., which they did not prosecute due to a change of counsel. A criminal case also came to be registered against the plaintiffs and it is brought to the notice of this Court that the criminal case is now pending in Crl.M.P.No.365 of 2025 before the Judicial Magistrate, Pappireddipatti, based on the protest petition filed by the petitioners.

8. The Court below, in the first place, ought to have numbered the application and conducted a detailed enquiry. Instead, the Court below rejected

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the application even without numbering the application only on the ground that one of the parties had not agreed to the compromise. The Court ought not to have resorted to this procedure, considering the fact that a huge amount is said to have been paid by the petitioners, to the tune of Rs.1,46,00,000/-. When the parties had entered into a compromise and more particularly, when the plaintiffs themselves had filed the earlier application to record the compromise, which application was signed by all the parties, the Court should have conducted a more serious enquiry in this case after numbering the application.

9. This Court finds that the Court below has committed a serious error in not even numbering the application and conducting an enquiry on the same and ultimately, pass an order on merits. This results in an improper exercise of jurisdiction, which warrants the interference of this Court in exercise of its jurisdiction under Article 227 of the Constitution of India.

10. In the light of the above discussion, the order passed by the Court below on 23.10.2024, is hereby set aside. There shall be a direction to the Court below to number the application and conduct an enquiry after recording evidence and pass final orders in accordance with law. Such a procedure has to be followed, since the Court must ensure that the party has not taken undue advantage and later wriggled out of the compromise, thereby putting the other side to grave prejudice. The final orders shall be passed, within a period of three

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months from the date of the first hearing of the Interlocutory Application. Depending upon the order passed in the Interlocutory Application, the Court shall decide the further course of action in the suit in O.S.No.60 of 2023.

11. In the result, this Civil Revision Petition stands allowed in the above terms. No Costs. Consequently, the connected miscellaneous petition is closed. 30-09-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No SSR

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To The Subordinate Court, Pappireddipatti.

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N.ANAND VENKATESH, J. SSR CRP No. 1899 of 2025 30-09-2026

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