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The High Court dismissed an application to review its earlier ruling on execution, holding that the applicant showed only alleged legal error, not a reviewable error on the record.
The decree presented for execution is un-executable as it merely references the deed of settlement without specifying the reliefs granted or other determination of the suit, contrary to Order XX Rule 6(1) of the Civil Procedure Code. No order recording the compromise was made before passing the decree, as required by Order XXIII Rule 3.
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The decree presented for execution is un-executable as it merely refers to the deed of settlement without specifying the reliefs granted or other determination of the suit, and there is no evidence that an order recording the compromise was made or that a consent judgment was entered as required by law.
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The acts of the 1st and 2nd Respondents in executing the Deed of Settlement and related decisions without involving the Petitioner, a director and shareholder, were fraudulent and unfairly prejudicial. The Deed was executed by a person not lawfully appointed as company secretary, included property not owned by the company, and lacked proper authorization. These acts breached the Petitioner's rights and the company's Articles of Association, rendering the Deed, decree, and related acts null and void.
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The Court of Appeal held that a later suit challenging sale of mortgaged property was res judicata because the dispute had been finally resolved by consent decree.
The five-month period for payment of the total settlement amount was of essence, not the monthly instalment schedule. The respondent, by extending time and not enforcing the default clause immediately, waived strict compliance with the instalment timeline. The applicants' payment of USD 1,000,000 within five months constituted full compliance with the settlement deed and judgment.
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All preliminary objections were overruled as the issues raised were either previously adjudicated, did not meet the threshold for preliminary objections, or the applicant had shown good cause for not appealing due to confusion over representation. The Court's revisional jurisdiction is not ousted by the conclusion of High Court proceedings, and the application was not an abuse of process.
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Once a consent decree is entered by a competent court, that court becomes functus officio and cannot set aside the decree by application; the only remedy is by instituting a fresh suit. The High Court judge (Twaib, J.) erred in setting aside the consent decree by application, and the Court of Appeal has the power to correct this illegality by revision.
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