When a party to the suit denies a lawful compromise, the person has to go back to the Trial Court under the proviso to Order XXIII Rule 3 of the Code of Civil Procedure, 1906 ( CPC) and ask that Court to decide whether the compromise is valid, says the Supreme Court (SC) in Sakina Sultanali Sunesara ( Momin) v Shia Imami Ismaili Momin Jamat Samaj & Others [2025 INSC 570].
A party who accepts the compromise is bound by it and cannot appeal (Section 96(3)).
A party who denies the compromise must first raise that dispute before the Trial Court (proviso to Order XXIII Rule 3). A fresh suit is no longer possible (Order XXIII Rule 3-A).
If the Trial Court decides the objection and passes a decree adverse to the objector, a first appeal lies under Section 96(1); in that appeal the appellant may, by virtue of Order XLIII Rule 1-A (2), challenge the recording of the compromise, says the SC.
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