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LAKSHMI NARAYANAN versus S.S. PANDIAN

Citation: [2000] SUPP. 3 S.C.R. 72 · Decided: 04-09-2000 · Supreme Court of India · Bench: S.S.M. QUADRI · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A 
LAKSHMI NARAYANAN 
v. 
S.S. PANDIAN 
SEPTEMBER 4, 2000 
B 
[SYED SHAH MOHAMMED QUADRI AND Y.K. SABHARWAL, JJ.] 
Rent and Eviction 
Tamil Nadu Building Lease and Rent Control Act 1960--Civil Procedure 
C Code 1908-0rder 21 Rule 2, Sec.47-Decree of eviction-Compromise by 
parties pending execution~Part satisfaction recorded-Fresh lease in respect 
of part of the premises for 3 years-Part of the decree to be executed after 
3 years-Failure of tenant to vacate-Fresh execution filed by Appellant-
dismissed-Revision Petition dismissed-Whether the lease amounts to a 
D fresh lease-Held, No-Since the compromise has not been recorded by 
executing court, it does not have the effect of extinguishing the decree. 
The appellant filed eviction petition under the Tamil Nadu Buildings 
(Lease & Rent Control) Act, 1960 for eviction of the respondent, which was 
decreed ex parte. The appellant filed an application for execution of the ex 
E parte decree. During the pendency of the execution proceedings the parties 
entered into a compromise outside the court and the respondent surrendered 
possession of a portion of the building and for the rest of the suit premises, 
the parties entered into an agreement of lease for three years, with the same 
rate of rent. The compromise, inter a/ia, provided that if the respondent fails 
F to vacate the premises on the expiry of the said period, the appellant will be 
entitled to have the decree executed against him and get possession of the 
same. On filing the memo of compromise in the court, the Execution Petition 
was dismissed as 'not pressed'. 
On the respondent failing to vacate the property after the expiry of 3 
G years, the appellant filed a fresh Petition for execution of the decree for 
recovery of possession of the premises and the executing court ordered 
delivery of possession. The respondent filed an application for recalling the 
order of delivery of possession and for dismissal of the Execution Petition. 
The appellant also filed an application for permission to amend the description 
H of the property in the execution petition. The executing court by a common 
72 
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• 
.. 
LAKSHMI NARA YANAN v. S.S. PANDIAN 
order dismissed the appellant's petition and allowed the respondent's petition .. A 
The appellant filed two Revision Petitions in the High Court challenging the 
validity of the said common order. The High Court dismissed the revision 
petitions. In appeal to this Court, the appellant, contended that the compromise 
between the parties did not extinguish the decree itself, that it merely 
postponed the execution of the decree and as the respondent did not vacate the 
premises on the expiry of three years granted to him, the appellant is entitled B 
to have the decree executed and recover possession of the premises, and that 
as the compromise/adjustment of the decree was not recorded by the executing 
court in pursuance of Rule 3 of Order 21, the court cannot recognise the 
same and hold that the decree was extinguished in proceeding under Section 
47 of the Code of Civil Procedure. The respondent, contended that the C 
compromise and execution of a new lease deed for three years, during the 
pendency of the execution proceedings, extinguished the decree; that as the 
respondent would be enjoying the protection of the Rent Act, he was not liable 
to be evicted under the existing decree, that Order 21 Rule 2 of the C.P.C. 
was enacted for the benefit of a decree holder and that apart no mode of 
recording adjustment of the decree by the court having been prescribed under D 
the C.P.C., the order of the court.dismissing the Execution Petition on filing 
of the memo of compromise would amount to recording adjustment of the 
decree within the meaning of Rule 2 of Order 21 of the C.P.C., and, therefore, 
the executing court rightly took note of the compromise and dismissed the 
Execution Petition. 
Allowing the appeal, the Court 
E 
HELD: 1. In a case where parties compromise after the decree had been 
passed, the effect of the compromise on the executability of the decree depends 
upon the intention of the parties, which is a mixed q~estion of law and fact F 
and has to be determined by the executing court on an application under Section 
47 of the C.P.C. On interpretation of the decree and the compromise in the 
light of the facts and circumstances of each case. If on such determination it 
is gathered that the intention of the parties is to extinguish the decree and 
e

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