High Court of KeralaSingle JudgeOriginal Petition disposed with directions to e...

Pamella D’Cruz and others v Leelamma Alosious and others

Case / Petition Number:OP(C) No.1705 of 2014
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Sathish Ninan
Judgment Date
2023-02-06
Court Decision / Holding
OP(C) No.1705 of 2014 disposed with directions: (i) Ext.P4 application under the Proviso to Order 23 Rule 3 CPC shall be taken up, considered on merits; (ii) Both sides to adduce evidence on the application; (iii) If the application was closed otherwise, restore it to the merits; (iv) Trial Court to issue fresh notice of appearance and to enable restoration/further proceedings, with the petitioners producing a copy of this judgment for restoration.
Final Disposition
Original Petition disposed with directions to entertain Ext.P4 under Proviso to Order 23 Rule 3 CPC, allow evidence, restore/continue proceedings, and issue fresh notices for further proceedings in the trial court.

Parties to the Case

Appellants / Petitioners

  • Pamella D’Cruz aged 57 years, residing at 10/14-18 Mooramba Road, Dee Why, NSW 2009, Sydney, Australia (from Palm Villa, Station Kadavu, Attipra Village, Thiruvananthapuram, Kerala)
  • Patricia Madona Rocky aged 55 years, residing at No 17 Jalan Burung Upih, Taman Bukit Maluri, 52100 Kuala Lumpur
  • Paxy D’Cruz residing at No 17 Jalan Burung Upih, Taman Bukit Maluri 52100 Kuala Lumpur, Malaysia
  • Anto Marshal residing at No 308, Block M-15, Persiaran Pandan I, Pandan Jaya, 51100, Kuala Lumpur, Malaysia
  • Simon Egbert residing at No 302, Jalan Kajang Jaya, Taman Kajang Jaya 43000, Kajang, Selangor, Malaysia

Respondents

  • Leelamma Alosious w/o ALOSIous, KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM VILLA, STATIONKADAVU, THIRUVANANTHAPURAM
  • Meri Anitha d/o Leelamma Alosious, KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM VILLA, STATIONKADAVU, THIRUVANANTHAPURAM
  • Thara d/o Leelamma Alosious, KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM VILLA, STATIONKADAVU, THIRUVANANTHAPURAM
  • Baby Decson s/o.Alogious Fernandes, KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM VILLA, STATIONKADAVU, THIRUVANANTHAPURAM

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. K.B. Pradeep
  • • Sri. Ashok Suresh

Counsels for Respondents

  • • Sri. Govind Padmanabhan
  • • Sri. Manu V.
  • • Sri. Ram Mohan G.
  • • Sri. G.P. Shinod

Case Synopsis & Summary

The petition arises from a suit for declaration of title, mandatory injunction, and setting aside a document, which was settled before a Lok Adalat. The compromise terms (Ext.P2) and the Award (Ext.P3) resulted in the suit being closed. The plaintiffs, represented by a power of attorney holder, challenge the compromise in Original Petition (OP(C) 1705 of 2014) alleging fraud by the power of attorney. The respondents initially raise the maintainability issue, while the court examines the legal framework governing Lok Adalat awards and consent decrees. Section 21 of the Legal Services Authorities Act, 1987 creates a presumption that Lok Adalat awards are decrees of the civil court; the Court Fees Act provisions are implicated in refunds. The judgment cites Thomas v. Thomas Job (2005) to reinforce that Lok Adalat awards are “fictionally” deemed decrees, with courts empowered as if a decree were passed by them. It also discusses Order 23 Rule 3 CPC, which provides for adjustment by compromise and the necessity of a court decree, along with the proviso permitting scrutiny when fraud is alleged. It references Triloki Nath Singh and others (2020) and other precedents to outline remedies for challenging consent decrees. Ultimately, the court orders Ext.P4 to be considered on merits, permits evidence for the fraud claim, and directs restoration and fresh notice to facilitate proceedings in the trial court, thereby partially allowing the petition to proceed with merits to be determined.

Provisions of Law Cited

Section 21, Legal Services Authorities Act, 1987Order 23 Rule 3, Code of Civil ProcedureProviso to Order 23 Rule 3Court Fees Act, 1870Indian Contract Act, 1872 (9 of 1872)

Legal Doctrines & Maxims

  • Award of Lok Adalat deemed to be a decree of the Civil Court; Lok Adalat awards have the status and effect of a court decree
  • An agreement or compromise void or voidable under the Indian Contract Act, 1872 shall not be deemed lawful within the meaning of Order 23 Rule 3 CPC

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the compromise entered through the power of attorney in the Lok Adalat proceedings was tainted by fraud and seeks relief by challenging the award/decree under Article 227/Proviso to Order 23 Rule 3 CPC. They rely on precedents suggesting maintainability of a challenge to such an award and file Ext.P4 to ventilate the allegations of fraud.

Contentions of Respondents

The respondents contend that the Lok Adalat award is a deemed decree under Section 21 of the Legal Services Authorities Act, 1987 and that the remedy lies within the procedural framework of Order 23 Rule 3 CPC; maintainability is contested and the court's inquiry into fraud is constrained by the proper remedies provided in CPC.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Thomas v. Thomas Job2005 (6) SCC 478PositiveLok Adalat awards are deemed decrees of the Civil Court; courts have powers as if a decree were passed by themselves.
Triloki Nath Singh v. Anirudh Singh (D) Thr.LRs and Others2020 (6) SCC 629PositiveRemedy available to avoid a consent/decree is to approach the court that recorded the compromise and established there was no genuine compromise.
Banwari Lal v. Smt.Chando Devi (through L.R) and Another1993 (1) SCC 581PositiveAffirms the remedy framework for challenging consent decrees based on fraud in the context of compromises.
Janakiammal R. and Others v. S.K.Kumarasamy (deceased) through legal representatives and Others2021 (9) SCC 114PositiveSupports the approach of challenging a compromise/decree via appropriate court procedures when fraud is alleged.
State of Punjab v. Jalour SinghAIR 2008 SC 1209Mentioned OnlyCited to discuss maintainability under Article 227; court notes it does not apply to the present facts.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ## **`THE HONOURABLE MR. JUSTICE SATHISH NINAN`** ``` MONDAY, THE 6[TH] DAY OF FEBRUARY 2023 / 17TH MAGHA, 1944 ``` ## **`OP(C) NO. 1705 OF 2014`** ## **`AGAINST THE ORDER/JUDGMENTOS 110/1999 OF PRINCIPAL SUB COURT /`** ## **`COMMERCIAL COURT, TRIVANDRUM`** ## **`PETITIONERS:`** - `1 PAMELLA D’CRUZ AGED 57 YEARS RESIDING AT 10/14-18 MOORAMBA ROAD,DEE WHY,NSW 2009,SYDEY, AUSTRALIA FROM PALM VILLA,STATION KADAVU, ATTIPRA VILLAGE,THIRUVANANTHAPURAM,KERALA` - `2 PATRICIA MADONA ROCKY AGED 55 YEARS RESIDING AT NO 17,JALAN BURUNG UPIH,TAMAN BUKIT MALURI,52100 KUALA LUMPUR` - `3 PAXY D’CRUZ RESIDING AT NO 17,JALAN BURUNG UPIH,TAMAN BUKIT MALURI 52100 KUALA LUMPUR,MALASIA` - `4 ANTO MARSHAL RESIDING AT NO 308,BLOCK M-15,PERSIARAN PANDAN I,PANDAN JAYA,51100,KUALA LUMPUR,MALASIA` - `5 SIMON EGBERT RESIDING AT NO 302,JALAN KAJANG JAYA,TAMAN KAJANG JAYA 43000,KAJANG,SELANGOR,MALAYSIA` ## **`PETITIONERS 3 TO 5 ARE REPRESENTED BY THE 1ST PETITIONER SHE BEING THE POWER OF ATTORNEY HOLDER`** ``` BY ADVS. SRI.K.B.PRADEEP SRI.ASHOK SURESH ``` ## **`RESPONDENTS:`** - `1 LEELAMMA ALOSIOUS W/O.ALOSIOUS,KATTUVILAKATHU VEEDU,NOW RESIDING AT PHALM VILLA,STATIONKADAVU,THIRUVANANTHAPURAM` - `2 MERI ANITHA D/O.LEELAMMA ALOSIOUS,,KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM VILLA, STATIONKADAVU,THIRUVANANTHAPURAM` - `3 THARA D/O.LEELAMMA ALSOCIOUS,KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM VILLA, STATIONKADAVU,THIRUVANANTHAPURAM` - `4 BABY DECSON S/O.ALOCIOUS FERNANDEZ, KATTUVILAKATHU VEEDU, NOW RESIDING AT PHALM` ``` O.P.NO.1705 OF 2014 ``` -2- ``` VILLA,STATIONKADAVU,THIRUVANANTHAPURAM 5ALOCIOUS FERANDEZ KATTUVILAKATHU VEEDU NOW RESIDING AT PHALM VILLA STATIONKADAVU THIRUVANANTHAPURAM BY ADVS. SRI.GOVIND PADMANAABHAN SRI.MANU V. SRI.RAM MOHAN.G. SRI.G.P.SHINOD ``` ``` THIS OP (CIVIL) HAVING COME UP FOR ADMISSION ON 06.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` O.P.NO.1705 OF 2014 ``` -3- ``` Sathish Ninan, J. ============================== O.P.No.1705 of 2014 ========================== Dated this the 06[th] day of February, 2023 ``` ## **`JUDGMENT`** ``` The suit for declaration of title, mandatory injunction, and for setting aside a document, was settled before the Adalat. The plaintiffs were being represented by a power of attorney holder. The compromise was entered into through the power of attorney holder. Ext.P2 is the terms of settlement and Ext.P3 is the Award. As per the compromise, the suit was “closed”. ``` ``` 2.Through another power of attorney, the plaintiffs in the suit have filed this Original Petition challenging the compromise, alleging fraud on the part of the power of attorney holder who entered into the compromise. ``` ``` O.P.NO.1705 OF 2014 ``` -4- ``` 3.Heard Sri.K.B.Pradeep – learned counsel for the petitioners and Sri.G.P.Shinod – learned counsel for the respondent. ``` ``` 4.The respondent raised a preliminary objection with regard to the maintainability of the Original Petition. The issue regarding the maintainability is thus being considered. ``` ``` 5.Section 21 of the Legal Services Authorities Act, 1987 reads thus:- ``` **`“` ⸺** _**21. Award of Lok Adalat.**_ `(1) Every award of the Lok Adalat shall be deemed to be a decree of a civil court or, as the case may be, an order of any other court and where a compromise or settlement has been arrived at, by a Lok Adalat in a case referred to it under sub-section (1) of section 20, the court-free paid in such case shall be refunded in the manner provided under the Court Fees Act, 1870 (7 of 1870).”` ``` 6.In terms thereof, the Award passed by the Adalat is deemed to be a decree passed by the Civil Court. Therefore, Ext.P3 Award with Ext.P2 ``` ## `O.P.NO.1705 OF 2014` -5- ``` terms thereto, is deemed to be a decree passed by the Court – the Subordinate Judge Court, Thiruvananthapuram. In Thomas v. Thomas Job [2005 (6) SCC 478], the Apex Court held that, the Award passed by the Lok Adalat is fictionally a deemed decree of the Court, and that the Courts have all the powers in relation thereto, as if, is a decree passed by itself. ``` ``` 7.Order 23 Rule 3 of the Code of Civil ``` ## `Procedure reads thus:` ``` “3. Compromise of suit.- Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise [in writing and signed by the parties], or where the defendant satisfies the plaintiff in respect of the whole or any part of the subject- matter of the suit, the Court shall order such agreement, compromise or satisfaction to the recorded, and shall pass a decree in accordance therewith [so far as it relates to the parties to be suit, whether or not the subject-matter of the agreement, compromise or satisfaction is the same as the subject - matter of the suit]; ``` ``` O.P.NO.1705 OF 2014 ``` -6- ``` [Provided that where it is alleged by one party and denied by the other that an adjustment or satisfaction has been arrived at, the Court shall decided the question; but no adjournment shall be granted for the purpose of deciding the question, unless the Court, for reasons to the recorded, thinks fit to grant such adjournment.] ``` ``` [Explanation.- An agreement or compromise which is void or voidable under the Indian Contract Act, 1872 (9 of 1872), shall not be deemed to be lawful within the meaning of this rule.]” ``` ``` 8.In terms thereof, a challenge against a consent decree based on compromise, is to be made in terms of the proviso to Rule 3. ``` ``` 9.In Triloki Nath Singh v. Anirudh Singh (D) Thr.LRs and Others [2020 (6) SCC 629], the Apex Court held that the remedy available to a party to a consent/ compromise decree to avoid the decree is, to approach the Court which recorded the compromise and made a decree in terms of it, and establish that there was no compromise. To the same effect are the judgments inBanwari Lal v. Smt.Chando Devi ``` ``` O.P.NO.1705 OF 2014 ``` -7- ``` (through L.R) and Another [1993 (1) SCC 581] and in Janakiammal R. and Others v. S.K.Kumarasamy (deceased) through legal representatives and Others [2021 (9) SCC 114]. ``` ``` 10.The learned counsel for the petitioners drew the attention of this Court to the decision of the Apex Court in State of Punjab v. Jalour Singh [AIR 2008 SC 1209] to contend that, an Original Petition under Article 227 of the Constitution is maintainable against the impugned award. Reading of the said judgment indicates that, in that case there was no settlement/compromise between the parties. The Apex Court held that no appeal lies against an Award by the Adalat. The said decision does not apply to the facts of the present case. ``` ``` 11.In the present case, the challenge against compromise being founded on fraud, necessarily evidence needs to be adduced. The petitioners have their remedy before the trial ``` ## `O.P.NO.1705 OF 2014` -8- ``` Court in terms of the proviso to Rule 3 to Order 23 CPC. In fact the petitioners have filed Ext.P4 before the learned Sub Judge in terms of Proviso to Order 23 Rule 3. The parties are to be permitted to adduce evidence on the application. ``` ``` Accordingly, this Original Petition ordered as hereunder: ``` _**(i)**_ `Ext.P4 application filed by the petitioners in terms of the Proviso to Order 23 Rule 3 shall be taken up, considered and disposed of on its merits.` _**(ii)**_ `Both sides shall be permitted to adduce evidence on the application.` _**(iii)**_ `If the application has been closed due to any reason, except being on the merits, the same shall be restored by the Court back to its files and shall be considered on the merits.` ``` O.P.NO.1705 OF 2014 ``` -9- _**(iv)**_ `The Trial Court shall issue fresh notice of appearance to the parties. The petitioners shall produce a copy of this judgment before the Trial Court to enable restoration/further proceedings in terms of restoration.` ``` Sd/- ``` ``` Sathish Ninan, Judge ``` ``` Raj. 06.02.2023. ``` ``` O.P.NO.1705 OF 2014 ``` -10- ## **`APPENDIX OF OP(C) 1705/2014`** ``` PETITIONER EXHIBITS ``` ``` EXHIBIT P1 TRUE COPY OF THE PLAINT IN O.S 110/1999 ``` ``` EXHIBIT P2 TRUE COPY OF THE COMPROMISE PETITION ``` ``` EXHIBIT P3 TRUE COPY OF THE AWARD DATED 12-06-2010 ``` ``` EXHIBIT P4 TRUE COPY OF THE PETITION I.A NO 4913/2011 ``` ``` EXHIBIT P5 TRUE COPY OF OBJECTIONS TO I.A NO 4913/2011 ``` ``` EXHIBIT P6 TRUE COPY OF THE POWER OF ATTORNEY DATED 14-01-1999 EXECUTED BY ROCKY DECRUZ & CELINE DECRUZ ``` ``` EXHIBIT P7 TRUE COPY OF THE POWER OF ATTORNEY DATED 25-09-2001 EXECUTED BY PAMELLA D'CRUZ ``` ``` EXHIBIT P8 TRUE COPY OF THE POWER OF ATTORNEY DATED 07-12-2001 EXECUTED BY PATRICIA MADONA ``` ``` EXHIBIT P9 TRUE COPY OF THE POWER OF ATTORNEY DATED 24-12-2001 EXECUTED BY PATRICIA MADONA ``` ``` EXHIBIT P10 TRUE COPY OF THE POWER OF ATTORNEY DATED 21-11-2001 EXECUTED BY PAXY JEMMA ``` ``` EXHIBIT P11 THE POWER OF ATTORNEY DATED 10-07-2014 EXECUTED BY 3RD PETITIONER IN FAVOUR OF THE 1ST PETITIONERE ``` ``` EXHIBIT P12 THE POWER OF ATTORNEY DATED 10-07-2014 EXECUTED BY 4TH PETITIONEER IN FAVOUR OF THE 1ST PETITIONER ``` ``` EXHIBIT P13 THE POWER OF ATTORNEY DATED 10-07-2014 EXECUTED BY 5TH PETITIONER ``` ``` O.P.NO.1705 OF 2014 ``` **==> picture [20 x 9] intentionally omitted <==** ``` IN FAVOUR OF THE 1ST PETITIONER ```