NAME- TANYA SHUKLA

SEMESTER AND YEAR – VIIth Sem, 4th Year

COIURSE – BALLB (Hons.)

COLLEGE – SCHOOL OF LAW, NMIMS, INDORE

META TITLE – Compromise in a representative suit

Meta Description - A party has a right to file a civil suit and has a right to make that suit end with a compromise. In this blog we are going to deal with a party who is not just an individual but a group of people, or who represents group of people who have common problems all together making it as a representative suit. A layman always avoids unnecessary conflicts and for that reason he tries to settle any dispute through a compromise. Similarly, in order to avoid a conflict or when a court finds it difficult to reach to a satisfactory decision, the parties go for compromise in a dispute. This is when a plaintiff wants to compromise in a civil suit. Here, in this blog we are going to talk about a representative suit that when a group of people on behalf of the original appellant files a suit and represents the original party and ends the dispute through a compromise.

Keywords- Dispute, Compromise, representative, suit, order 23, rule 3B

INTRODUCTION

Compromise of suits is being dealt under order 23. Order 23, Rule 1,2 and 4 deals with the withdrawal of the suits whereas the provisions of compromise of suits is being dealt under order 23, rule 3 and 3B. The parties are open to compromise and adjust the matter by an agreement or compromise whenever the suit is filed. In "Hiralal Moolchand v Barot Raman Lal", it was held that "that all matters which can be decided in a suit can also be settled by means of a compromise."

A compromise is an agreement between two or more parties in which each party gives up some of what they wanted. It's an agreement to end a legal disagreement without going to court. The process of reaching a compromise to end the case kept the claims of the opposing parties at bay. Additionally, in other instances, the parties resolved their litigations through the participation of well-wishers and the conciliation procedure.Once a Civil Suit has been filed and launched in court, the parties are free to reach a mutually agreeable settlement and compromise by means of any legally binding agreement or compromise in writing signed by all of the parties. In other words, all issues that can be decided in a civil dispute can be settled by a compromise.

Compromise in a suit:- The person who initiates legal action (the "Plaintiff") has a right to the relief requested in the "prayer" part of the plaint, which sets forth the specifics of the claim. The court will hear the case and then make a ruling, which could favour the plaintiff or the defendant depending on the evidence presented. If the plaintiff wins the lawsuit and the decision is carried out, he may be entitled to such a claim or relief. However, the rule allows for settlements to be reached between the parties after a lawsuit has been filed but before a verdict has been rendered.

The decision to settle their differences through agreement and compromise rests solely with the disputing parties. The court shall record any statements, agreements, compromises, or satisfactions made by the defendant to the plaintiff with respect to the subject matter of the suit, and shall enter a compromise decree if the court finds that the parties are willing to mutually settle in whole or in part by any lawful agreement in writing and signed by both parties.

Essential clauses in a compromise:- A compromise between the parties can be considered valid if it meets a small number of criteria. Any settlement reached between the parties must be in writing, signed by all parties, and follow all applicable laws. The court will keep track of it, and more importantly, the compromise decree will be recognized as binding only if it has been officially approved by the court.

  • Jurisdiction:Remember that the compromise must be entered into the court records of the original presiding judge. The trial court is where lawsuits are filed, while the appellate court or revisional court is where appeals and corrections are filed. This must be documented by the executing court in the event of execution.
  • Power of a Pleader:If a pleader files a lawsuit on behalf of a client, the lawsuit will be considered valid because the pleader is in the same legal position as the client. The pleader is authorized to negotiate a settlement on behalf of his client. In any case, the court should give notice to the affected parties before granting any permission.
  • Applicability:The court's compromise may be referred to as a "decree," but it will not have the same legal force as a true decree. The court's acceptance of an issue on which the parties had already reached an agreement means that the Res-Judicata principle does not apply. It's not just the court's ruling.

Representative suit :- A representative is defined as "one who stands for or acts on behalf of another" in the Black's Law Dictionary. It's not uncommon for there to be a large number of persons who all have a vested interest in the same suit. With the court's approval, one or more of them can represent the group when filing a lawsuit, bringing a lawsuit, or defending against a lawsuit on behalf of persons who have comparable interests.The law that defines representative suits and addresses them in general is

"Order 1 Rule 8 of the Code of Civil Procedure, 1908". Rule 8(1) states as follows:

Only one person need file or respond to a lawsuit on behalf of a group.

Whenever many people share a common interest in a lawsuit:

A. With the Court's approval, one or more of such people may bring an action or defend against an action on behalf of, or for the benefit of, all persons so interested;

B. The Court may appoint one or more people to sue or be sued, or to defend such litigation, on behalf of or for the benefit of all persons so interested.

This rule was added to the Code of Civil Procedure in 1908 with the sole purpose of preventing inconsistent rulings and duplicative proceedings. This is an enabling rule of convenience describing the situations under which such persons when not named parties to an action may nonetheless be bound by the proceedings therein, as held in the instances of Kumaravelu v. Ramaswami, and Saraf & Co v. Munnal. It's important to emphasize that this rule only applies to suit procedures, which are focused on the enforcement of legal rights, and not writ proceedings, which are centered on the enforcement of basic right.

With the court's permission, the Advocate General or at least two individuals with a stake in the trust may file a complaint under Section 92 of the law to seek remedies for a breach of trust involving a public purpose trust that is philanthropic or religious in nature. Suits filed under Section 92 of the CPC are unique in that they serve to protect the public's interest in public charities and trusts. Following the first offended party's death, no further court approval is necessary provided leave of the court was previously granted. It is important to note that the CPC Section 92 Suit is a class action lawsuit. A statement is made on behalf of the broader public.

To file such a lawsuit, you must meet the following requirements, as stated by the courts in the cases of Gangavishnu v. Nathulal, and Kumaravelu v. Ramaswami:"Numerous parties.Same interest, Court's permission, Suit's Notice"

Compromise in a representative suit:- A new regulation, Rule 3-B of Order 23, governs settlements in representative suits. These are the contents, according to the document:

"Order XXIII Withdrawal and adjustment of suits"

According to Gurpreet vs. Chatur Bhuj, "Rule 3 of Order XXIII" lays down two prerequisites for properly passing a compromise decree. The court must first be convinced that the dispute between the parties has been resolved, in whole or in part, by a valid agreement in writing that has been signed by all of them. As was also decided in Byram vs. UOI, the second circumstance is when the defendant fully or partially resolves the plaintiff's claims or defenses.

(3)(b) Compromise in Representative suits: A compromise in a representative suit requires the court's approval; failing to obtain this approval will result in the compromise being null and void. Additionally, leave must be requested in advance.

Also, since a pleader is in the same situation as his client, he can enter a compromise on behalf of his client. Under Rule 3-B, a representative suit cannot settle without the court's approval. A compromise decree cannot be challenged in court on the grounds that it is unconstitutional, per Rule 3-A. If one party claims an adjustment and the other denies it, the court must decide on the matter and cannot postpone making that decision unless it finds good cause to do so.

Explanation

In this rule, "representative suit" means,-
(a) "a suit under section 91 or section 92",
(b) "a suit under rule 8 of Order I",
(c) "a suit in which the manager of an undivided Hindu family sues or is sued as representing the other members of the family",
(d) "any other suit in which the decree passed may, by virtue of the provisions of this Code or of any other law for the time being in force, bind any person who is not named as party to the suit."

Compromise on behalf of a minor: -No next friend or guardian of a child shall, without the consent of the court, enter into an agreement or compromise on behalf of the minor with relation to the suit, unless such leave is specifically recorded in the proceedings(Order 32 Rules 6, 7).

Execution of compromise decree: -Similarly to a regular degree, a compromise decree can be put into effect. In other cases, however, the decree's legitimacy can be challenged even during execution if it gives effect to an unlawful compromise or was issued by a court without the requisite jurisdiction.

After a lawsuit has been filed, the parties have the option of reaching a settlement or a compromise to resolve the dispute out of court. When such prerequisites are met, the court may issue a compromise decree in the same case. One must fulfil the criteria of the said provisions to make it a lawful compromise else it can be said void. One has a right to file a suit in a way of a representative suit, one or more representing someone or State. The law seeks all person to have a right to come to court or to file a suit in Court, if not court, then law has provided options or choices for a citizen of India to fight for their justice in whatever way they feel comfortable.

CONCLUSION

As per the above facts and provision under C.P.C, we can say that after the institution of the suit, parties to the suit are free to settle and adjust their case by an agreement or by the compromise. Order-23, Rule-3 and 3B say regarding the compromise between the parties and also provide some conditions for the agreement. Upon fulfilling those conditions, the court may pass a compromise decree in the same suit.

REFERENCES

  • Live Law, Compromise Decree In Representative Suit Void If Obtained Without Leave Of Court And Notice To Interested Parties: SC [Read Judgment]
    https://www.livelaw.in/top-stories/compromise-decree-in-representative-suit-void-if-obtained-without-leave-of-court-146914?infinitescroll=1
  • Order XXIII of Civil Procedure Code- Withdrawal and Adjustment of Suits, (April 6, 2020), https://www.writinglaw.com/order-xxiii-of-cpc/
  • Abhijith Cristopher, Essential Requirements, Res Judicata and Compromise in Representative Suits under the CPC, 1908, Essential Requirements, Res Judicata and Compromise in Representative Suits under the CPC, 1908 (legalserviceindia.com)
  • Compromise of Suit: Order 23 Rules 3,3-B Under CPC, https://www.lawnotes4u.in/2019/02/compromise-of-suit-order-23-rules-3-3B-under-CPC.html
  • Shaheen Banoo, 4th Year Student, B.A. LL.B.(Hons.), Symbiosis Law School, Pune, Symbiosis International University.
  • HiralalMoolchand v Barot Raman Lal, AIR 1993 SC 1449
  • Kumaravelu v. Ramaswami , AIR 1933 PC 183
  • Saraf & Co v. Munnal, AIR 1973 MP 216
  • Gangavishnu v. Nathulal, AIR 1957 MP 173
  • Gurpreet vs. Chatur Bhuj, 1988 AIR 400
  • Byram vs. UOI, 1991 AIR 2234

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.