DAMODAR ROPEWAYS & CONSTRUCTION CO. (P) LTD. versus CHRISTOPHER MARTIN DASGRANGES MARTIN & ORS.

Citation: [1989] SUPP. 1 S.C.R. 445 · Decided: 06-10-1989 · Supreme Court of India · Bench: RANGANATH MISRA · Disposal: Disposed off

Judgment (excerpt)

DAMODAR ROPEWAYS & CONSTRUCTION CO. (P) LTD. 
v. 
CHRISTOPHER MARTIN DASGRANGES MARTIN & ORS. 
OCTOBER 6, 1989 
A 
[RANGANATH MISRA AND M.N. VENKATACHALIAH, J.T.] 
B 
Code of Civil Procedure 1908: Order XXIII-Rule 3 Compro-
mise-Acceptance of by Court-Question for consideration. 
0 
Delay in filing compromise-Effect of. 
The Board of Governors of the respondent school en.,red into a 
contract for the grant of permanent lease of immovable property of the 
school to the petitioner-builder. An association of the old students of the 
school resisted the agreement before the High Court but a learned 
Single Judge accorded sanction which was later stayed. The petitioner 
preferred an appeal before the Division Bench of the High Court which 
made certain interim directions while disposing the appeal. Hence this 
appeal by the petitioner. 
During the pendency of the appeal, the parties entered into a 
compromise which was signed on behalf of all the parties, but the com-
promise deed was filed in this Court after a lapse of three years. The 
Association of the old students resisted the compromise on the ground: 
(i) that there was a lapse Of three years between the date of signing the 
compromise and its filing in the court; (ii) the President of the Old 
Association of students had no authority to enter the compromise. 
Disposing the appeal, this Court; 
HELD: (1) If the compromise is genuine and lawful, the delay' in 
presentation in court could at the most be in the realm of equity and 
would not be otherwise material.In the instant case the resolution of the 
Board of the Association clarities the position that all parties had agreed 
to the compromise and it was intended to be presented before this Court 
for permission to enter into compromise. The President of the Old 
Association of Students had been authhorised to associate himself for 
the purpose. The agreement has been signed by the parties and is not 
unlawful. The compromise is, therefore, in accordance with the provi-
sions of Order XXIII, rule 3 of thti Code of Civil Procedure and can be 
acted upon. [448F-H] 
445 
c 
D 
E 
F 
G 
H 
446 
SUPREME COURT REPORTS 
[ 1989] Supp. 1 S.C.R. 
2. Before the compromise is accepted it is for the court to tie 
A satisfied that the terms are in the interests of the Trust. [449A] 
2.1 In the instant case, under the agreement forming the subject 
matter of compromise the school would have space available for expan· 
sion in the near future. It is not in the interest of the school to reject the 
B agreement on the ground that there was scope of receiving better offers 
if advertisement was made. [449E-C] 
2.2 It is appropriate that the compromise should be·accepted with 
certain variations viz. availability of extra area to the school, escalation 
of the ground rent and provision for automatic escalation of ground 
C rent of 10% once in every IO years. The permission is accordingly 
accorded to the Board of Governors to enter into compromise on behalf 
of the school. [449E & 4498; 450A-B] 
CIVIL APPELLATE JURISDICTION: I.A. No. 1of1989. 
D 
IN 
Civil Appeal No. 3334 of 1982. 
From the Judgment and Order dated 16. 9 .1982 of the Calcutta 
E High Court in Appeal No. nil. 
Kapil Sibal, R.F. Nariman and Vineet Kumar for the Petitioner. 
Dr. Shankar Ghose, H.N. Salve, G. Joshi, A.K. Sil, Ms. Urmil 
Narang (N.P.), C.S. Vaidyanathan, Vivek Gambhir (N.P.) and 
F Praveen Kumar for the Respondents. 
The following Order of the Court was delivered by 
MISRA, J. This civil appeal by special leave is at the instance 
of a builder who had entered into a contract with the Board of 
G Governors of the La Martiniere School at Calcutta in respect of 
certain immovable property of the School to be taken by the builder 
on permanent lease. 
Christopher Martin Desgranges Martin left behind a will which 
· stipulated the setting up of a school for the benefit of the city of 
H Calcutta and upon his death the will was probated and the executors 
DAMODAR ROPEWAYS v. C.M.D. MARTIN !MISRA, J.] 
447 
set up the school. The Board of Governors of the School (hereinafter 
'Board') among others has the reverend Bishop of the city of Calcutta 
as its Chairman and a retired Major-General of the Indian Army as a 
member. The Old Martinians Association (herinafter 'Association') 
being a body of the old students of the School resisted the request cif 
the School before the High Court when it applied for acceptance of the 
agreement of lease of 1981. A learned S

Excerpt shown. Read the full judgment & AI analysis in Lexace.