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Supreme Court of India

BASAVARAJversusINDIRA AND OTHERS

Citation
2024 INSC 151
Decided
29 February 2024
Disposal
Appeal(s) allowed

Holding

An amendment that changes the fundamental character of a suit and is filed beyond the limitation period for challenging a compromise decree cannot be allowed under Order VI Rule 17 of the CPC.

Summary

The respondents filed a suit for partition of ancestral property in 2005, acknowledging an earlier compromise decree dated 14 Oct 2004. At the final stage of trial, they sought to amend the plaint to include a prayer that the compromise decree be declared null and void, alleging oversight and mistake. The trial court rejected the amendment, but the Karnataka High Court allowed it, changing the nature of the suit from partition to declaration. The Supreme Court examined whether such amendment was permissible under Order VI Rule 17 of the CPC, considering the principles of due diligence, prejudice, and the limitation period for challenging a consent decree. It held that the amendment fundamentally altered the character of the suit, was filed five years after the decree—beyond the three‑year limitation—and would prejudice the appellant, and that a consent decree can be challenged only before the court that passed it. Consequently, the Court set aside the High Court order, dismissed the amendment application, and awarded costs to the appellant.

Issues considered

  • Whether an amendment to a plaint seeking a declaration that a compromise decree is null and void can be allowed at the stage of arguments under Order VI Rule 17 of the CPC.
  • Whether the amendment changes the fundamental nature of the suit and therefore is impermissible.
  • Whether the three‑year limitation period for challenging a compromise decree bars the amendment.
  • Whether a party may challenge a consent decree in a different suit when not all parties to the decree are before the court.

Legislation cited

Subjects

Application for amendmentDue diligenceCommencement of trialSuit for partition and separate possessionCompromise decreeOversight and by mistakeDelayConsent decree

Judgment

                 [2024] 2 S.C.R. 935 : 2024 INSC 151

                               Basavaraj
                                   v.
                           Indira and Others
                     (Civil Appeal No. 2886 of 2012)
                             29 February 2024
             [C.T. Ravikumar and Rajesh Bindal,* JJ.]

                          Issue for Consideration
       High Court, if justified in allowing the amendment application,
       changing the nature of suit from partition to declaration.

                                Headnotes
       Code of Civil Procedure, 1908 – Ord. VI r. 17 – Amendment
       of pleadings – When allowed – On facts, suit for partition
       and separate possession – When the matter reached
       the stage of arguments, application for amendment of
       the plaint filed by the respondents No. 1 and 2, seeking
       relief of declaration of the earlier compromise decree
       being null and void, pleading oversight and mistake,
       on the part of the respondents No. 1 and 2 – Trial court
       dismissed the application, however, the High Court
       allowed the same – Correctness:
       Held: Application for amendment may be rejected if it seeks
       to introduce totally different, new and inconsistent case or
       changes the fundamental character of the suit – Ord. VI
       r. 17 prevents an application for amendment after the trial
       has commenced unless the Court comes to the conclusion
       that despite due diligence the party could not have raised
       the issue before the commencement of trial – Important
       factor, to be considered is as to whether the amendment
       would cause prejudice to the other side or it fundamentally
       changes the nature and character of the case or a fresh suit
       on the amended claim would be barred on the date of filing
       the application – On facts, the relief sought would certainly
       change the nature of the suit, which may be impermissible –
       If the amendment is allowed, it would certainly prejudice the
* Author
936                                                         [2024] 2 S.C.R.

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       appellant – What cannot be done directly, cannot be allowed
       to be done indirectly – Application for amendment was filed
       5 years after passing of the compromise decree, which is
       sought to be challenged by way of amendment – Limitation
       for challenging any decree is three years – As with the
       passage of time, right had accrued in favour of the appellant
       with reference to challenge to the compromise decree, the
       same cannot be taken away on account of delay in filing
       the application – Even if on any ground the amendment
       could be permitted, still no relief could be claimed as all
       the parties thereto were not before the Court in the suit in
       question – Impugned order passed by the High Court is set
       aside – Application for amendment of the plaint is dismissed.
       [Paras 8-14]
       Code of Civil Procedure, 1908 – Ord. 23 – Compromise
       decree – Challenge to, when:
       Held: Appeal is not maintainable against a consent decree –
       No separate suit can be filed – Consent decree operates as
       an estoppel and binding unless it is set aside by the court by
       an order on an application under the proviso to Order XXIII
       r. 3 – Only remedy available to a party to a consent decree
       is to approach the Court which recorded the compromise
       as it was opined to be nothing else but a contract between
       the parties superimposed with the seal of approval of the
       Court. [Para 7]
                              Case Law Cited
            Revajeetu Builders and Developers v. Narayanaswamy
            and sons and others, [2009] 15 SCR 103 : (2009) 10
            SCC 84 – relied on.
            Vidyabai and others v. Padmalatha and another, [2008]
            17 SCR 505 : (2009) 2 SCC 409; Dondapati Narayana
            Reddy v. Duggireddy Venkatanarayana Reddy and
            others, (2001) 8 SCC 115; Estralla Rubber v. Dass
            Estate (P) Ltd., [2001] Suppl. 3 SCR 68 : (2001) 8
            SCC 97; Pushpa Devi Bhagat (Dead) through L.R.
            Sadhna Rai (Smt.) v. Rajinder Singh and others, [2006]
[2024] 2 S.C.R.                                                            937

                              Basavaraj v. Indira and Others


              Suppl. 3 SCR 370 : (2006) 5 SCC 566; M. Revanna v.
              Anjanamma (Dead) by legal representatives and others,
              (2019) 4 SCC 332 – referred to.

                                           List of Acts
      Code of Civil Procedure, 1908.

                                        List of Keywords
      Application for amendment; Due diligence; Commencement of trial;
      Suit for partition and separate possession; Compromise decree;
      Oversight and by mistake; Delay; Consent decree.

                                       Case Arising From
      CIVIL APPELLATE JURISDICTION : Civil Appeal No.2886 of 2012
      From the Judgment and Order dated 18.08.2010 of the High Court
      of Karnataka at Bangalore in WP No. 82086 of 2010
                                     Appearances for Parties
      Nishanth Patil, Ayush P. Shah, Vignesh Adithya S., Ankolekar
      Gurudatta, Advs. for the Appellant.
      Ashok Kumar Gupta II, Shankar Divate, Advs. for the Respondents.
                      Judgment / Order of the Supreme Court

                                                Judgment
      Rajesh Bindal, J.
1.    Vide impugned order1 passed by the High Court2, an application filed
      by respondents No. 1 and 2/plaintiffs for amendment of the plaint
      was allowed subject to costs of ₹2,000/-.
2.    Briefly, the facts available on record are that respondents No. 1 and
      2 filed a suit3 for partition of the ancestral property belonging to their
      grand father pleading that no actual partition of the property has ever
      taken place. When the suit was at the fag end, an application was
      filed by respondents No. 1 and 2 seeking amendment of the plaint.


1    Order dated 18.08.2010 passed in W.P. No. 82086 of 2010
2    High Court of Karnataka, Circuit Bench at Gulbarga
3    Original Suit No. 151 of 2005
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       The amendment sought was to add prayer in the suit for a declaration
       that an earlier compromise decree dated 14.10.2004 was null and
       void. As prayer was not made earlier, the court fee required thereon
       was also sought to be affixed. The ground on which the amendment
       was sought was that due to oversight and mistake, the respondents
       No. 1 and 2/plaintiffs were unable to seek the relief of declaration.
       No prejudice as such would be caused to the defendants as limited
       relief is for fair partition of the ancestral property. The Trial Court4
       dismissed the application. However, when the order5 was challenged
       before the High Court, the same was set aside and the amendment
       prayed for by the plaintiffs was allowed subject to payment of costs.
3.     Learned counsel for the appellant submitted that in the case in hand,
       there was a family partition in Original Suit No. 401 of 2003 filed
       by Smt. Mahadevi and Smt. Sharnamma, wife and daughter-in-law
       respectively of defendant No.1/Shivasharnappa, impleading the
       plaintiffs and the defendants as party. A compromise decree dated
       14.10.2004 was passed by the Lok Adalat, District Legal Services
       Authority, Gulbarga. Thereafter, respondents No. 1 and 2 filed a fresh
       suit in 2005 seeking partition of the ancestral property. Though in
       the suit pleading was there with reference to the earlier compromise
       decree, however for the reasons best known to the plaintiffs, no
       challenge was made to the same. As a result of the order passed
       by the High Court, the nature of the suit was changed from partition
       to declaration, which is impermissible.
       3.1 Further in terms of proviso to Order VI Rule 17 CPC, no
           amendment could be allowed after commencement of the trial.
           In the case in hand, the suit was at the fag end, as fixed for
           arguments.
       3.2 It was further submitted that the compromise decree was passed
           on 14.10.2004. In terms of the provisions of Order XXIII Rule
           3 CPC, the same could be challenged only before the same
           Court and not before any other Court.
       3.3 He further contended that there was a specific stand taken
           by the appellant/defendant No. 2 in the written statement that



4    First Additional Civil Judge (Senior Division) at Gulbarga
5    Order dated 31.05.2010
[2024] 2 S.C.R.                                                          939

                            Basavaraj v. Indira and Others


             there being a compromise decree in existence, no relief may be
             admissible to respondents No. 1 and 2, unless that decree is
             challenged. The written statement was filed in August 2005, still
             no steps taken by the respondents No. 1 and 2 in that direction.
             Part of the suit property having been sold, an amendment was
             carried out in the plaint in July 2006 to implead the subsequent
             purchaser. Even at that stage, this relief was not sought.
      3.4 It was further contended that the relief of declaration of
          compromise decree being null and void prayed for by way of
          amendment otherwise also was time barred as the compromise
          decree was passed on 14.10.2004. The application for
          amendment was filed on 08.02.2010. Even the court fee was
          sought to be affixed at the time of filing of application for
          amendment.
      3.5 The application filed by respondents No. 1 and 2 did not meet
          the pre-conditions laid down in Order VI Rule 17 CPC for
          permitting respondents No. 1 and 2 to amend the pleadings
          at the fag end of the trial. No due diligence was pleaded. All
          what was stated was that there was oversight on the part of
          respondents No. 1 and 2/plaintiffs.
      3.6 Referring to the parties who were there in the compromise
          decree, it was argued that some of them are not parties in
          the suit in question, hence otherwise also challenge to the
          compromise decree may not be maintainable.
      3.7 In support of the arguments, reliance was placed upon the
          judgments of this Court in Revajeetu Builders and Developers
          v. Narayanaswamy and sons and others6 and Vidyabai and
          others v. Padmalatha and another7
4.    In response, learned counsel for respondents No. 1 and 2 submitted
      that it was merely an oversight mistake which occurred at the time of
      filing of the suit and at the subsequent stage for which the amendment
      was prayed for by respondents No. 1 and 2. It is not a case where
      the pleadings to that effect are not available on record. Respondents
      No. 1 and 2 had fairly pleaded about the earlier compromise decree.


6    [2009] 15 SCR 103 : (2009) 10 SCC 84
7    [2008] 17 SCR 505 : (2009) 2 SCC 409
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       Inadvertently, the prayer for declaration thereof as null and void
       could not be made. The court fee also could not be deposited. No
       fresh evidence is to be led. The case is at the arguments stage.
       The same can be argued with mere re-framing of the issues. It will
       avoid multiplicity of litigation and ultimately complete justice will be
       done amongst the parties, who are merely praying for partition of
       the ancestral property. The other side can be compensated with
       costs, as was even done by the High Court. No prejudice as such
       will be caused to the appellant. Substantial justice will be done
       to the parties. In support of the arguments, reliance was placed
       upon a judgment of this Court in Dondapati Narayana Reddy v.
       Duggireddy Venkatanarayana Reddy and others8 and Estralla
       Rubber v. Dass Estate (P) Ltd.9
5.     Heard learned counsel for the parties and perused the relevant
       referred record.
6.     It is a case in which the appellant has been forced into avoidable
       unnecessary litigation to rush to this Court. The suit was filed by
       respondents No. 1 and 2 in 2005 seeking partition of the ancestral
       property. It was specifically pleaded in the suit that there was a
       compromise decree between the parties. However, as may be
       the advice to respondents No. 1 and 2, despite there being a
       compromise decree existing between the parties, no prayer was
       made in the suit with reference thereto, if any grievance was there.
       It remained simpliciter a suit for partition. A specific stand was taken
       by the appellant in the written statement to the effect that the suit is
       not maintainable unless cancellation of the compromise decree is
       prayed for as the same would operate as res-judicata. The written
       statement was filed in August 2005. Despite the specific pleading of
       the appellant, the respondents No. 1 and 2 did not take any steps.
       6.1 During the pendency of the suit, an amendment was carried
           out by respondents No. 1 and 2 to implead respondent No. 4
           in the suit who was the purchaser of a part of the suit property.
           The same was allowed on 01.07.2006. Thereafter, trial of the
           suit continued. When it reached at the stage of arguments in
           February 2010 an application was filed by respondents No. 1 and


8    (2001) 8 SCC 115
9    [2001] Suppl. 3 SCR 68 : (2001) 8 SCC 97
[2024] 2 S.C.R.                                                                941

                            Basavaraj v. Indira and Others


              2 seeking amendment of the plaint. The reasons assigned to file
              the belated application seeking amendment of the plaint were
              that due to oversight and by mistake, the respondents No.1 and
              2 failed to seek relief of declaration of the compromise decree
              being null and void and were unable to deposit the court fee.
7.    The law with reference to challenge to a compromise decree is well
      settled. It was opined in Pushpa Devi Bhagat (Dead) through L.R.
      Sadhna Rai (Smt.) v. Rajinder Singh and others10 that (i) appeal is
      not maintainable against a consent decree; (ii) no separate suit can
      be filed; (iii) consent decree operates as an estoppel and binding
      unless it is set aside by the court by an order on an application under
      the proviso to Order XXIII Rule 3 C.P.C.; and (iv) the only remedy
      available to a party to a consent decree is to approach the Court
      which recorded the compromise as it was opined to be nothing else
      but a contract between the parties superimposed with the seal of
      approval of the Court. Relevant part of paragraph No. 17 thereof is
      extracted below:
              "17. The position that emerges from the amended
                   provisions of Order 23 can be summed up thus:
                     (i)    No appeal is maintainable against a consent
                            decree having regard to the specific bar
                            contained in section 96(3) CPC.
                     (ii)   No appeal is maintainable against the order of
                            the court recording the compromise (or refusing
                            to record a compromise) in view of the deletion
                            of clause (m) Rule 1 Order 43.
                     (iii) No independent suit can be filed for setting aside
                           a compromise decree on the ground that the
                           compromise was not lawful in view of the bar
                           contained in Rule 3A.
                     (iv) A consent decree operates as an estoppel and
                          is valid and binding unless it is set aside by the
                          court which passed the consent decree, by an
                          order on an application under the proviso to
                          Rule 3 of Order 23.


10   [2006] Suppl. 3 SCR 370 : (2006) 5 SCC 566
942                                                           [2024] 2 S.C.R.

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       Therefore, the only remedy available to a party to a consent decree to
       avoid such consent decree, is to approach the court which recorded
       the compromise and made a decree in terms of it, and establish that
       there was no compromise. In that event, the court which recorded the
       compromise will itself consider and decide the question as to whether
       there was a valid compromise or not. This is so because a consent
       decree, is nothing but contract between parties superimposed with
       the seal of approval of the court. The validity of a consent decree
       depends wholly on the validity of the agreement or compromise on
       which it is made…”
8.     Proviso to Order VI Rule 17 CPC provides that no application for
       amendment shall be allowed after the trial has commenced, unless
       the Court comes to the conclusion that in spite of due diligence, the
       party could not have raised the matter before the commencement
       of trial. In the case in hand, this is not even the pleaded case of
       respondents No. 1 and 2 before the Trial Court in the application
       for amendment that due diligence was there at the time of filing of
       the suit in not seeking relief prayed for by way of amendment. All
       what was pleaded was oversight. The same cannot be accepted as
       a ground to allow any amendment in the pleadings at the fag end
       of the trial especially when admittedly the facts were in knowledge
       of the respondents No. 1 and 2/plaintiffs.
       8.1 The relevant paragraphs of the application seeking amendment
           of the plaint are reproduced hereunder:
            "2.   That, due to over sight and by mistake the Plaintiff
                  was unable to sought relief declaration of decree as
                  null and void and unable to pay required court fee
                  some unavoidable circumstances and the proposed
                  amendment is very essential for deciding the matter
                  in dispute.
            3.    xxx
            4.    That, if the proposed amendment is allowed no
                  prejudice will be cause to the other side, on the
                  other hand if it is not allowed then the deponent will
                  be put to great loss and will also leads multiplicity of
                  litigation’s. Hence it is just and proper to allow the
                  proposed amendment to meet the ends of justice.”(sic)
[2024] 2 S.C.R.                                                              943

                         Basavaraj v. Indira and Others


9.    This Court in M. Revanna v. Anjanamma (Dead) by legal
      representatives and others 11 opined that an application for
      amendment may be rejected if it seeks to introduce totally different,
      new and inconsistent case or changes the fundamental character
      of the suit. Order VI Rule 17 C.P.C. prevents an application for
      amendment after the trial has commenced unless the Court comes
      to the conclusion that despite due diligence the party could not have
      raised the issue. The burden is on the party seeking amendment
      after commencement of trial to show that in spite of due diligence
      such amendment could not be sought earlier. It is not a matter of
      right. Paragraph No. 7 thereof is extracted below:
             "7.    Leave to amend may be refused if it introduces
                    a totally different, new and inconsistent case, or
                    challenges the fundamental character of the suit. The
                    proviso to Order 6 Rule 17 CPC virtually prevents
                    an application for amendment of pleadings from
                    being allowed after the trial has commenced, unless
                    the court comes to the conclusion that in spite of
                    due diligence, the party could not have raised the
                    matter before the commencement of the trial. The
                    proviso, to an extent, curtails absolute discretion
                    to allow amendment at any stage. Therefore, the
                    burden is on the person who seeks an amendment
                    after commencement of the trial to show that in
                    spite of due diligence, such an amendment could
                    not have been sought earlier. There cannot be any
                    dispute that an amendment cannot be claimed as a
                    matter of right, and under all circumstances. Though
                    normally amendments are allowed in the pleadings
                    to avoid multiplicity of litigation, the court needs to
                    take into consideration whether the application for
                    amendment is bona fide or mala fide and whether
                    the amendment causes such prejudice to the other
                    side which cannot be compensated adequately in
                    terms of money.”
                                                     (emphasis supplied)


11   (2019) 4 SCC 332
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10. Initially, the suit was filed for partition and separate possession. By
    way of amendment, relief of declaration of the compromise decree
    being null and void was also sought. The same would certainly
    change the nature of the suit, which may be impermissible.
11. This Court in Revajeetu’s case (supra) enumerated the factors
    to be taken into consideration by the court while dealing with an
    application for amendment. One of the important factor is as to
    whether the amendment would cause prejudice to the other side or
    it fundamentally changes the nature and character of the case or
    a fresh suit on the amended claim would be barred on the date of
    filing the application.
12. If the amendment is allowed in the case in hand, certainly prejudice
    will be caused to the appellant. This is one of the important factors to
    be seen at the time of consideration of any application for amendment
    of pleadings. Any right accrued to the opposite party cannot be taken
    away on account of delay in filing the application.
       12.1 In the case in hand, the compromise decree was passed on
            14.10.2004 in which the plaintiffs were party. The application
            for amendment of the plaint was filed on 08.02.2010 i.e. 5
            years and 03 months after passing of the compromise decree,
            which is sought to be challenged by way of amendment. The
            limitation for challenging any decree is three years (Reference
            can be made to Article 59 in Part-IV of the Schedule attached
            to the Limitation Act, 1963). A fresh suit to challenge the same
            may not be maintainable. Meaning thereby, the relief sought
            by way of amendment was time barred. As with the passage
            of time, right had accrued in favour of the appellant with
            reference to challenge to the compromise decree, the same
            cannot be taken away. In case the amendment in the plaint
            is allowed, this will certainly cause prejudice to the appellant.
            What cannot be done directly, cannot be allowed to be done
            indirectly.
13. Further, a perusal of the memo of parties in the suit in question and
    in the compromise decree shows that the plaintiffs i.e. Sharnamma
    @ Mahananda wife of Basvaraj and Mahadevi wife of Shivsharnappa
    Nasi in Original Suit No. 401 of 2003 are not party to the present
    litigation. Even if on any ground the amendment could be permitted,
    still no relief could be claimed with reference to setting aside of the
[2024] 2 S.C.R.                                                       945

                      Basavaraj v. Indira and Others


     compromise decree as all the parties thereto were not before the
     Court in the suit in question.
14. For the reasons mentioned above, the present appeal is allowed.
    The impugned order passed by the High Court is set aside. The
    application filed for amendment of the plaint is dismissed. The
    appellant shall be entitled to cost of the proceedings, which are
    assessed at ₹1,00,000/- to be paid jointly or severally by respondents
    No. 1 and 2. The appellant shall be paid the amount of cost on the
    next date of hearing before the Trial Court by way of demand draft.


     Headnotes prepared by: Nidhi Jain                  Result of the case:
                                                           Appeal allowed.


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