High Court of Gujarat

VINUBHAI DHIRUBHAI KATHROTIAversusHEIRS OF LR OF DECD. BAI PARVATIBEN D/O. AMTHA LALVABHAI AND W/O. GULABBHAI RANCHHODBHAI

Disposal: 47-DISPOSAL IN ANY OTHER MODE FH
Bench: ILESH VORAR T VACHHANI

Holding

The settlement is valid and, under Order 23 Rule 3 CPC, the decree concerning survey No. 36/1 is set aside, disposing the appeal by consent.

Summary

The First Appeal challenged a decree that granted the plaintiff a half share in two survey parcels and declared two registered sale deeds void. During the appeal, the original plaintiff and defendants 6‑8 executed a registered settlement agreement relinquishing the plaintiff’s rights over survey No. 36/1. The court examined the settlement deed and the appellant’s affidavit, and, invoking Order 23 Rule 3 of the CPC, held that the compromise could be recorded. Consequently, the decree concerning survey No. 36/1 was set aside and the appeal was disposed of on the basis of the consent decree. The court clarified that a separate appeal concerning the remaining parcel will proceed on its merits. No order was needed in the related civil application.

Issues considered

Whether a settlement agreement executed during pendency of an appeal can be recorded as a compromise under Order 23 Rule 3 of the CPC.
Whether the decree relating to survey No. 36/1 can be set aside on the basis of such compromise.

Legislation cited

Code of Civil Procedures. Order 23 Rule 3

Subjects

settlement agreementcompromiseOrder 23 Rule 3decree set asidecivil appealproperty disputeregistered sale deed

Judgment

     C/FA/4529/2024                              ORDER DATED: 10/08/2026




           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                 R/FIRST APPEAL NO. 4529 of 2024
                               With
   CIVIL APPLICATION (FOR ADDITIONAL EVIDENCE) NO. 2 of 2024
                In R/FIRST APPEAL NO. 4529 of 2024
==========================================================
             VINUBHAI DHIRUBHAI KATHROTIA & ORS.
                            Versus
HEIRS OF LR OF DECD. BAI PARVATIBEN D/O. AMTHA LALVABHAI AND
            W/O. GULABBHAI RANCHHODBHAI & ORS.
==========================================================
Appearance:
MR SP MAJMUDAR WITH MR DAXESH D BAROT(13149) for the
Appellant(s) No. 1,2,3
DECEASED LITIGANT for the Defendant(s) No. 1,1.5,3
M/S.VYAS ASSOCIATES(1559) for the Defendant(s) No. 1.1,1.2,1.3,1.4
MR ARPIT A KAPADIA(3974) for the Defendant(s) No. 6,7
MR. SHALIN J PATEL(14556) for the Defendant(s) No. 1.1,1.2,1.3,1.4
RULE NOT RECD BACK for the Defendant(s) No. 2,4,5
==========================================================

 CORAM:HONOURABLE MR. JUSTICE ILESH J. VORA
       and
       HONOURABLE MR. JUSTICE R. T. VACHHANI

                           Date : 10/08/2026

                           ORAL ORDER
            (PER : HONOURABLE MR. JUSTICE ILESH J. VORA)

   1. We have heard Mr. S.P. Majmudar, learned advocate for Mr.
      Daxesh D. Barot and Mr. Shalin J. Patel on behalf of M/s. Vyas
      Associates and Mr. Arpit Kapadia, learned advocate.


   2. This First Appeal is directed against the judgment and decree dated
      31.08.2024, passed in Special Civil Suit No. 42 of 2018, whereby,
      the Principal Senior Civil Judge, Surat, by allowing the suit,
      declared one half share of the plaintiff in the suit properties,
      namely, survey No. 53/3 and survey No. 36/1 and further declared
      the registered sale deed dated 28.01.2003 executed in favour of
      defendant Nos. 6 to 9 and registered sale deed No. 3760 dated


                                Page 1 of 4
  C/FA/4529/2024                               ORDER DATED: 10/08/2026




   31.10.2013 with respect to land bearing survey No. 53/3, as null
   and void.


3. Before the trial Court, the appellants herein were being arraigned
   as defendant nos. 6 to 8.


4. During the pendency of the Appeal, the original plaintiffs and
   defendant Nos. 6 to 8 by registered settlement agreement, settled
   their dispute with respect to land bearing survey No.36/1. So far as
   land bearing survey No. 36/1 is concerned, the plaintiffs have
   relinquished and/or abandons their right with respect to land
   bearing survey No. 36/1 (suit property) in favour of the defendant
   nos. 6 to 8. In the registered settlement agreement (confirmation-
   cum-declaration), the parties have agreed to relinquish their rights
   in favour of present appellants – original defendant nos. 6 to 8, for
   which, the substantial payment by cheques as referred in the deed
   was already paid to the parties.


5. All the relevant parties i.e. appellants and respondent nos. 6 to 8
   have joined the Appeal proceedings through virtual. Upon inquiry
   by this Court, the parties have confirmed the terms and conditions
   of the settlement agreement and also acknowledged their signatures
   put on the confirmation-cum-declaration deed. The copy of the
   same along with the sworn affidavit of appellant no.3 is taken on
   record.


6. Mr. S.P. Majmudar, learned advocate referring to the Order 23
   Rule 3 of the Code of Civil Procedure, contends that the suit is


                               Page 2 of 4
        C/FA/4529/2024                                 ORDER DATED: 10/08/2026




         adjusted in part by lawful agreement allegedly executed by
         registered deed and therefore, Court can record the compromise in
         respect of part of the subject matter of the suit.


      7. Thus, it is submitted that by recording the compromise, the appeal
         may be disposed of.


      8. Mr. Arpit Kapadia, learned advocate submits that the compromise
         may be recorded without prejudice to the rights and contention of
         the original defendant nos. 9 & 10, as the First Appeal against the
         impugned judgment and decree with respect to the remaining
         parcel of land, is still pending.


      9. We have carefully examined the affidavit of appellant no. 3 and the
         registered confirmation-cum-declaration, by which the parties i.e.
         plaintiffs and original defendant nos. 6 to 8 have arrived at the
         settlement, whereby, the plaintiffs have abandoned and/or
         relinquished their rights with respect to land bearing survey No.
         36/1, which is subject matter of suit property. We are satisfied with
         the adjustment of the part of the suit property and permission for
         disposal of the present appeal by decree in terms of consent is
         hereby granted. The decree qua land bearing survey No. 36/1 is
         hereby set aside.


10.      Accordingly, the present Appeal is disposed of in terms of Order
         23 Rule 3 of the Code of Civil Procedure. Decree be drawn
         accordingly in terms of compromise as referred above.



                                     Page 3 of 4
         C/FA/4529/2024                                                            ORDER DATED: 10/08/2026




11.        We made it clear that the First Appeal No. 3461 of 2024 pending
           with respect to remaining parcel of lands, shall be decided on its
           own merits.


12.        In view of the order passed in main First Appeal, no order in Civil
           Application No. 2 of 2024 and is disposed of accordingly.




                                                                                            (ILESH J. VORA,J)




                                                                                         (R. T. VACHHANI, J)
P.S. JOSHI

Original copy of this order has been signed by the Hon'ble Judges.
Digitally signed by: PALLAV SUBHASHCHANDRA JOSHI(HC00177), Principal Pvt. Secretary, at High Court of Gujarat on 11/08/2026 11:02:23




                                                       Page 4 of 4

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