Code of Civil Procedure, 1908 – s.96 – Right of appeal – Appeal against judgment of High Court dismissing appeal filed by appellants against Consent Order dated 16.02.2005 in Suit No. 1335/1988 to which appellant was not signatory – Appellants were not a party to the proceedings at the stage when the consent order came to be passed on 16.02.2005, or the subsequent consent order dated 03.10.2005 in Suit No. 1335 / 1988 – High Court in the impugned judgment, recorded a finding that since Appellants were not a party to the proceedings, and the Order dated 16.02.2005 was passed on the terms agreeable to the parties to the proceedings, it shall not be binding upon the Appellants, and their rights could be examined independently in the substantive suit No. 3162 / 2005 filed at their instance (which is pending adjudication before High Court) – Propriety – Held: Proper – Since the Appellants were not a party to the Consent Terms as evident from the record, when the Orders came to be passed on 16.02.2005 followed with 03.10.2005, it may not bind the Appellants – Its legal effect is open to be examined in the substantive suit filed at their instance independently on its own merits in accordance with law – Party – Consent decree. Disposing of the appeal, the Court
HELD:1. Suit No. 1335/1988 was disposed of by the Court on the consent terms arrived between the parties to the proceedings vide Order dated 16.02.2005 followed by Order dated 03.10.2005. In the given circumstances, the Appellants who were later impleaded, have a right of appeal under Section 96 of the CPC. However, since the Appellants were not a party to the Consent Orders, it was not open for the Court to examine the legal effect of the Consent Orders dated 16.02.2005 and 03.10.2005 to which the Appellants were not a party. Once the substantive suit has been filed at their instance questioning the Consent Orders dated 16.02.2005 followed by 03.10.2005, the same is indeed open to be examined independently on its own merits in the pending proceedings initiated at their instance. [Para 19][135-D-G]
2. So far as the rights of the Appellants are concerned, the same have been duly protected by the High Court in the impugned judgment. The observations/findings which were recorded by the High Court in the impugned judgment, in no manner, prejudiced the rights of the Appellants, and the pending Suit No. 3162/2005 filed by the Appellant may be examined by the Court independently on its own merits in accordance with law without being influenced by the observations made by the High Court in the impugned judgment. [Para 20][135-G-H; 136-A-B]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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