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Statement Made By A Party In The Court Cannot Be Said to Have Lesser Sanctity Than those Made Outside The Court –Punjab And Haryana High Court

Team SoOLEGAL 21 Oct 2020 3:46pm

Statement Made By A Party In The Court Cannot Be Said to Have Lesser Sanctity Than those Made Outside The Court –Punjab And Haryana High Court

In Lachhman Das vs. Amarjit Singh Sahni and Anr. CR-6310-2019 (O&M) i.e. in the present case, an application was filed by the petitioner challenging the order of Rent Controller, which directed the petitioner to clear his rental dues, before the Appellant Authority where ultimately a compromise was recorded between the parties. On very next day, petitioner again moved an application before Appellant Authority contending that he was "allured" into making a statement of compromise by his counsel and the landlord. The Application was dismissed by the same and the petitioner has appealed to The Punjab and Haryana High Court, Chandigarh regarding the matter.

In The High Court it was argued by the petitioner that there was no written agreement for compromise made by him and he was allured into making a statement of compromise by his counsel and landlord which was later withdrawn, hence, there was no valid compromise.

The Court has relied upon Gurpreet Singh v. Chatur Bhuj Goel, 1988(1) SCC 270, and held that written agreement is mandatory for compromise, which was challenged by respondent by arguing that in the relied case it was also held that the compromise made by the counsel of parties is also valid therefore it can’t be set aside.

The High Court recounts on the judgments of The Hon’ble Supreme Court in Jineshwardas (D) through LRs & Ors. v. Jagrani & Anr., 2003(11) SCC 372, and Pushpa Devi Bhagat (D) through LR v. Rajinder Singh & Ors., 2006(5) SCC 566, observes that a statement made by a party or by his counsel towards compromise which is in writing is considered to be as good as written compromise and would satisfy the requirements of Order 23 Rule 3 CPC.

The Hon’ble Justice Gurvinder Singh Gill observed that a statement made by a party for compromise in The Court cannot be said to have a lesser sanctity than the compromise made outside the Court. The court also clarified that, "Perhaps the only exceptional circumstances under which a party may be able to wriggle out from a statement made by him or by his counsel could be wherein he is able to establish that such statement was made by way of fraud or deception. Even in such a case he would ideally be required to file a suit for getting such order/judgement/decree set aside on the basis of alleged fraud.”

Therefore the court concluded that there is nothing on record to prove the allegations made by the petitioner against his counsel. Further it found merit in the respondent’s arguments and held that Statements Made By A Party In the Court Cannot Be Said to have lesser sanctity than made outside the court before any authority such as notary public.



Tagged: Punjab And Haryana High Court   Chandigarh   HighCourt   Justice Gurvinder Singh Gill  
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