The decree is contended to be void for two reasons. Firstly, the compromise entered into in the representative suit without the leave of the court and without due notice and publication as required under Order XXIII Rule 3-B and Order I Rule 8(4) of CPC is void; secondly, in view of the violation of Sections 89 and 139 of the Kerala State Housing Board Act, the decree is void.
9. It is not in dispute that the suit was instituted by the plaintiffs in a representative capacity. The suit was decreed, as prayed for. in the compromise entered into pending appeal, the decree was accepted by the defendant and the plaintiffs gave up their right to recover costs, it is also not in dispute that prior to entering into the compromise, the leave of the court under Order XXIII Rule 3-B CPC was not obtained and the publication as required under Order I Rule 8(4) of CPC was not effected.
10. What is the effect of non-compliance of Order XXIII Rule 3-B and Order I Rule 8(4) of the CPC, on the decree in question? It would be appropriate to refer to Order XXIII Rule 3-B and order I Rule 8(4). The said provisions read thus:-
"3-B. No agreement or compromise to be entered in a representative suit without leave of Court.- (1) No agreement or compromise in a representative suit shall be entered into without the leave of the Court expressly recorded in the proceedings; and any such agreement or compromise entered into without the leave of the Court so recorded shall be void."
"8(4) (4) No part of the claim in any such suit shall be abandoned under sub-rule (1). and no such suit shall be withdrawn under sub-rule (3). of rule 1 of Order XXIII. and no agreement, compromise or satisfaction shall be recorded in any such suit under rule 3 of that Order, unless the Court has given, at the plaintiffs expense, notice to all persons so interested in the manner specified in sub-rule (2)."
A plain reading of the provisions indicate that the provisions regarding leave and notice, are mandatory in character. In Mohammed v. Avarankutty Haji [1996 (1) KLT 474], relying on the judgment of the Apex Court in Charan Lai Sabhu v. Union of India (MANU/SC/0285/1990 : AIR 1990 SC 1480), it was held that, violation of Order XXIII Rule 3-B and Order I Rule 8(4) of the CPC makes the order void.
11. Then the question would be, is the defendant who suffered a decree in terms of the plaint, entitled to take shelter under the said provisions and contend that the decree is void? To whom would such a plea be available?
12. It is to be noticed that the defendant was impleaded in the suit in his individual capacity and it was the plaintiff who filed the suit in a representative capacity. Under Order I Rule 8 CPC, one person may sue or be sued on behalf of numerous persons having the same interest. As per Order I Rule 8(6) CPC, a decree passed in such a suit binds all persons on whose behalf the suit is instituted or on whose behalf the suit is defended, as the case may be.
13. The trial court decreed the suit, as prayed. The decree was literally accepted in the compromise, and no prejudice was caused to the plaintiffs or the numerous persons whose interests they purported to represent in the suit.
14. The very purpose of requiring leave of the court to enter into a compromise and also effecting publication in terms of Order I Rule 8(4) CPC is to ensure that the persons who represent the interests of others, does not enter into a compromise defeating, prejudicing or affecting the interests of the third parties whose interests also they represent. As noticed supra, the decree binds them also. So, if a compromise is entered into and decree passed in violation of Order XXIII Rule 3-B and Order I Rule 8(4), the decree shall be void in so far as they are concerned- They will not be bound by the decree. However the eo-nominee parties to the compromise should be held by the same. The plea that the decree passed on compromise is void for violation of Order XXIII Rule 3-B and Order I Rule 8(4) shall be open only for the persons whose interests were represented by the plaintiff or the defendant in the suit, as the case may be. in other words, the decree on compromise without conforming to the provisions of Order XXIII Rule 3-B and Order I Rule 8(4) will be void only as against persons who interests the plaintiff or the defendant, as the case may be, sought to represent. Such a plea would not be available to the persons who entered into the compromise. The provisions are to be so read and understood. Any other interpretation would entail miscarriage of justice.
17. The construction of the procedural provisions, Order XXIII Rule 3-B and Order I Rule 8(4), as I have adopted, would only advance the cause of justice.
18. In the instant case, as noticed supra, no prejudice whatsoever has been caused to the persons whom the plaintiff represented. The decree would at best be void as against the interests of the persons whom the plaintiff represented and not as against the defendant who had contested and lost. Therefore, I hold that the plea that the decree is void for violation of Order XXIII Rule 3-B and Order I Rule 8(4) is not available to the defendant, on the facts of the case.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
OP(C) No. 2075 of 2018
Decided On: 16.11.2018
Shibu Vs. Pradeep Kumar and Ors.
Hon'ble Judges/Coram:
Sathish Ninan, J.
Citation: AIR 2019(NOC) 98 Ker