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High Court of Gujarat

MUKAND LIMITEDversusM/S LAXMI ENGINEERING WORKS A PERTNERSHIP FIRM REGISTERED UNDER INDIAN PARTNERSHIP ACT 1932

Disposal
38-RULE ABSOLUTE/ALLOWED @ FH
Bench
C DOSHI

Holding

The First Appeal is allowed, the original decree is quashed, and a new decree is to be drawn as per the parties' consent terms.

Summary

In Summary Suit No.2 of 2011, the learned Additional Senior Civil Judge, Valsad camp at Vapi, rejected the leave to defend application and passed a decree in favour of the plaintiff. The aggrieved party filed a First Appeal, during which the appellant was directed to deposit 50% of the decretal amount, which had already been deposited. During the hearing, the parties amicably settled the dispute and executed consent terms before the court. The High Court verified the parties' volition, held that the consent terms governed the suit, and consequently quashed the impugned order and decree. The court ordered that the plaintiff be paid Rs.6,29,789 (50% of the decretal amount) with interest, and that a decree be drawn in accordance with the settlement.

Issues considered

  • Whether the First Appeal can be allowed on the basis of a settlement and consent terms between the parties.
  • Whether the decree passed by the trial court can be set aside and a new decree be drawn in accordance with the consent terms.
  • Effect of the deposited 50% decretal amount on the settlement and decree.

Legislation cited

Subjects

settlementconsent decreesummary suitappealdecree modificationcivil procedureinterestdeposit

Judgment

     C/FA/563/2012                              ORDER DATED: 17/03/2026




          IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                     R/FIRST APPEAL NO. 563 of 2012

==========================================================
                      MUKAND LIMITED
                           Versus
M/S LAXMI ENGINEERING WORKS A PERTNERSHIP FIRM REGISTERED
          UNDER INDIAN PARTNERSHIP ACT 1932 & ORS.
==========================================================
Appearance:
MR AMAR N BHATT, SR ADVOCATE(160) for the Appellant(s) No. 1
MR R G DWIVEDI(6601) for the Defendant(s) No. 1,2,3,4,5,6
==========================================================

 CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI

                            Date : 17/03/2026

                                ORDER


1.   In Summary Suit No.2 of 2011, the learned 2 nd Addl.
Senior Civil Judge, Valsad camp at Vapi passed the order
below Exh.40 and rejected the leave to defend application and
passed judgment and decree as claimed in summons for
judgment.


2.   Being aggrieved, the appellant – defendant has preferred
captioned First Appeal.


3.   At the time of admission of the First Appeal, the
defendant was directed to deposit 50% of the decretal
amount. Learned Senior counsel Mr. Amar Bhatt appearing
for the defendant states at bar that following the order dated
1.3.2012, 50% of the decretal amount has already been
deposited before the learned trial Court.


                                Page 1 of 3
      C/FA/563/2012                               ORDER DATED: 17/03/2026




4.    During hearing of this First Appeal, the parties have
amicably settled the dispute and 0led consent terms, which is
veri0ed and taken on record.


5.    On behalf of the defendant, authorized signatory Mr.
Pradeep Kunjappan has signed the consent terms and on
behalf of the plainti6s, Mr.Vinodkumar Sharma in the capacity
of the power of attorney holder of the plainti6s has signed the
consent terms. All the signatories of the consent terms are
present in the Court.      This Court veri0ed their volition in
reaching to the consent terms.              Both the parties, who are
present in the Court, are agreed to the consent terms.


6.    Perusal of the consent terms on record demonstrates
that it is in regards to the subject matter of the suit. Thus,
this Court is of the opinion that voluntary consent terms
arrived at between the parties needs to be recorded and
decree is to be drawn accordingly.


7.    Hence, I pass following order:-


7.1   The First Appeal is allowed in terms of consent terms.


7.2   The       impugned   order    passed       below       Exh.14         and
consequently order passed below summons for judgment is
hereby quashed and set aside.


7.3   The plainti6s are entitled to Rs.6,29,789/- being 50% of
the decretal amount along with accrued interest, as the said

                              Page 2 of 3
             C/FA/563/2012                                                          ORDER DATED: 17/03/2026




   amount has been deposited before the learned trial Court.


   7.4       The learned trial Court concerned shall pay the amount
   as stated herein above to the plainti6s after due veri0cation
   and identi0cation, within two weeks from the date of receipt
   of this order.


   7.4.1 The summary suit is disposed of in aforesaid terms.


   7.5       Decree to be drawn accordingly.


   8.        Registry to ensure that the R & P shall reach to the
   concerned Court within one week from today along with
   decree.



                                                                                                   (J. C. DOSHI,J)
   SHEKHAR P. BARVE


Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SHEKHAR PRAFULBHAI BARVE(HC00200), Principal Pvt. Secretary, at High Court of Gujarat on 17/03/2026 16:03:17




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