ARJAN SINGH versus PUNIT AHLUWALIA & ORS.

ARJAN SINGH versus PUNIT AHLUWALIA & ORS.

A compromise entered between one plaintiff and defendant, in suits concerning common property with rival claims, is not binding on a plaintiff who is not party to the compromise. The sale deed pursuant to the compromise is not binding on the rival plaintiff, and is affected by the doctrine of lis pendens. Decree may be passed in favour of such plaintiff notwithstanding the compromise; discretionary power under s.20 Specific Relief Act applies.

Parties
Appellant: Arjan Singh; Respondent: Punit Ahluwalia
Jurisdiction
India
Judgment Date
14 May 2008
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From High Court
Outcome
Appeal partly allowed; judgment of High Court set aside to the stated extent; trial court judgment restored in relevant part.
Legal Topics
Compromise of Suit, Specific Performance, Lis Pendens, Discretionary Jurisdiction, Injunctions
Civil Procedure Property Law Specific Relief Compromise of Suit Specific Performance Lis Pendens Discretionary Jurisdiction Injunctions

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Parties

Arjan Singh

Appellant

Punit Ahluwalia

Respondent

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From High Court

Legal Issues

  1. 1 Whether a compromise decree in one suit for specific performance concerning the same property binds a rival plaintiff not party to the compromise
  2. 2 Whether a sale deed effected pursuant to such a compromise is valid vis-a-vis the rival plaintiff
  3. 3 Effect of doctrine of lis pendens on sale during suit

Ratio Decidendi

A compromise entered between one plaintiff and defendant, in suits concerning common property with rival claims, is not binding on a plaintiff who is not party to the compromise. The sale deed pursuant to the compromise is not binding on the rival plaintiff, and is affected by the doctrine of lis pendens. Decree may be passed in favour of such plaintiff notwithstanding the compromise; discretionary power under s.20 Specific Relief Act applies.

Court Disposition

Appeal partly allowed; judgment of High Court set aside to the stated extent; trial court judgment restored in relevant part.

Orders

  • Respondents No.2 and 3 to bear costs of appellant; counsel's fee assessed at Rs.50,000.