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Supreme Court of India 2024-12-12 allowed

NAVRATAN LAL SHARMA vs RADHA MOHAN SHARMA & ORS

Bench: 2 — Pamidighantam Sri Narasimha, Manoj Misra

In Brief

The appellant sued to cancel a power of attorney and sale deeds allegedly procured by fraud. The trial court dismissed the suit, but during first appeal proceedings, the parties settled by compromise. The High Court disposed of the appeal on the compromise terms but explicitly denied liberty to restore it. When the respondent failed to pay as agreed, the appellant sought restoration, alleging fraud. The High Court rejected the application solely because no liberty had been granted. The Supreme Court held that statutory remedies under the CPC cannot be curtailed by denying liberty, and the court that recorded the compromise must consider whether it was made through fraud, making it voidable. The Court remanded the matter for the High Court to decide the recall application on merits.

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Civil Procedure Compromise Decrees Statutory Remedy Fraud Contract Law Judicial Review

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