Bombay High Court
DESERVE EMERALD REALTY PRIVATE LIMITEDversusADARSH KAPOL NAGAR
- Decided
- Disposal
- Disposed Off
Holding
The compromise memo and consent terms are a private agreement, not an award under the Legal Services Authorities Act, 1987, and the District Judge was correct in setting aside the execution order.
Summary
Deserve Emerals Realty Private Limited filed a writ petition challenging a District Judge's order that set aside an execution order restraining the respondent cooperative society from creating third‑party interests in a suit property. The dispute centered on whether a compromise memo filed before the Lok Adalat on 25 September 2021 constitutes an award under the Legal Services Authorities Act, 1987. The High Court examined the nature of the consent terms executed between the parties and noted that the Lok Adalat had not disposed of the execution proceeding on the basis of those terms but merely recorded a withdrawal by the decree holder. Consequently, the Court held that the consent terms are a separate agreement, not an award, and affirmed the lower court’s interference with the execution order. The petitioners were directed that they may institute a suit to enforce the consent terms, but the writ petition was dismissed without reaching the merits of the underlying dispute.
Issues considered
- Whether the compromise memo filed before the Lok Adalat constitutes an award under the Legal Services Authorities Act, 1987
- Whether the consent terms executed between the parties are enforceable as a court‑issued award
- Whether the District Judge was justified in setting aside the execution order
Legislation cited
Subjects
- Compromise memo
- Lok Adalat
- Legal Services Authorities Act
- Arbitration
- Consent terms
- Execution proceedings
- Civil court jurisdiction
- Status quo
Judgment
15-WP-10252-2026.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 10252 OF 2026
Deserve Emerals Realty Private Limited ..Petitioner
Versus
Adarsh Kapol Nagar Cooperative Housing Society …Respondent
Limited
Mr. Mutahhar Khan, with Gaurav Aswani, i/b Rehan Chhapra, for the
ARUN Petitioner.
RAMCHANDRA
SANKPAL
Mr. Prashant Gawali, with Shreya Mathane, for the Respondent.
Digitally signed by
ARUN RAMCHANDRA
SANKPAL
Date: 2026.09.02
10:16:06 +0530 CORAM: N. J. JAMADAR, J.
DATE : 29th AUGUST 2026
ORAL ORDER:
1. Heard the learned for the parties.
2. The challenge in this Petition is to a judgment and order dated
21st January 2026, passed by the learned District Judge, Vasai, in MCA
No. 23 of 2025, whereby the Appeal preferred by the Respondent-
Defendant/Judgment Debtor against an order dated 29 th April 2025 in
Civil MA No 121 of 2024, thereby restraining the Respondent from
creating any third party interest in the suit property until the disposal of
the said Application and to maintain status quo in respect of the
development and restraining it acting in contravention of Memorandum
of Understanding dated 19th February 2014, the Arbitral Award dated
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15-WP-10252-2026.DOC
28th April 2017 and the Consent Terms in Arbitration Execution No. 440
of 2019, came to be allowed by setting aside the order passed by the
executing Court.
3. The core controversy between the parties revolves around the
question as to whether the compromise memo filed before the Lok
Adalat on 25th September 2021, constitutes as an Award under the Legal
Services Authorities Act, 1987.
4. The said compromise memo was filed in Arbitration RD No. 440
of 2019. By an order dated 11th December 2021, the Panel
Head, Lok Adalat and CJSD, Vasai, disposed of the said execution
proceeding as a withdrawal pursis (Exhibit “12”) was filed by the
Petitioner-Decree Holder. The learned Judge recorded that the Decree
Holder intended to withdraw the said proceeding as the decree stood
fully satisfied.
5. In the backdrop of the aforesaid proceeding before the Lok Adalat
and the orders passed by the Panel Head, Lok Adalat and CJSD, Vasai,
on 11th December 2021, the learned District Judge was of the view that
the consent terms, which were executed between the parties on 25 th
September 2021, were in the nature of a separate agreement executed
between the parties and did not constitute an Award.
6. Evidently, the Lok Adalat Panel has not disposed of the execution
proceeding on the basis of the consent terms executed between the
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15-WP-10252-2026.DOC
parties on 25th September 2021. Instead, in view of the consent terms,
the Petitioner-Decree Holder chose to withdraw the RD asserting that
the decree had been fully executed. The consent terms do not have the
imprimatur of the Court as the Court had not passed an order in
accordance with the consent terms.
7. In the aforesaid view of the matter, the learned District Judge was
justified in interfering with the order passed by the Executing Court.
8. The Petitioners shall however have the liberty to institute a suit to
enforce the consent terms executed between the parties on 25 th
September 2021.
9. In the event such a suit is instituted, the Civil Court will have due
regard to the proceedings that have taken place before the Executing
Court as well as the stand of the JD in the said proceedings and
Arbitration Petition (L) No. 23214 of 2024.
10. It is clarified that this Court has not entered into the merits of the
matter.
11. Petition disposed.
[N. J. JAMADAR, J.]
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