Case: N.K. Rajgarhia Vs. M/S.Mahavir Plantation Ltd.

a compromise in execution proceedings. Nor does Order 20, Rule 11(2) affect this power of the executing Court. Order 20, Rule 11 enables the court passing the decree to order postponement of the payment of the decretal amount on such terms as to the payment of interest as it thinks fit on the application of the judgment-debtor and with the consent of the decree-holder. It does not affect the power of the executing Court under Section 47 and Order 21, Rule 2. 14. Yet again in Periyakkal (supra), this Court held that, in certain situations, the court has also jurisdiction to extend the time stating: The parties, however, entered into a compromise and invited the court to make an order in terms of the compromise, which the court did. The time for deposit stipulated by the parties became the time allowed by the court and this gave the court the jurisdiction to extend time in appropriate cases. Of course, time would not be extended ordinarily, nor for the mere asking. It would be granted in rare cases to prevent manifest injustice. True the court would not rewrite a contract between the parties but the court would relieve against a forfeiture clause; And, where the contract of the parties has merged in the order of the court, the courts freedom to act to further the ends of justice would surely not stand curtailed. 15. There cannot, thus, be any doubt that the compromise entered into by and between the parties hereto in the execution proceedings was valid in law. The Appellant moreover does not say that the same was not acted upon. Admittedly, he received the entire amount thereunder, albeit belatedly; but even therefor the Respondent applied for and obtained extension of time to pay the same. 16. Rightly or wrongly, the learned Single Judge of the Delhi High Court by an order dated 28.8.2002 extended the time to the Respondent herein for paying the decretal amount with interest upto 23.7.2002. The Appellant herein had accepted such amount and that order was not questioned and, thus, the same had attained finality. What was questioned was the liability incurred by the Respondent not being able to adhere to the terms thereof. 17. If the orders of extension have validly been passed, the order of the court stood complied with. It may be true that the order dated 1.4.2002 was not questioned by the Respondent before this Court but then no direction was issued therein. No judgment was passed. The said order was passed without issuing any notice to the Respondents. The appeal was disposed of as having become infructuous. It was, thus, not final. Thereby, merely a liberty had been granted to the Appellant to agitate his grievances before the learned Single Judge for execution as well as for contempt. By reason of the said order, alone the Appellant could not put forth his claim. The Appellant, thus, cannot take any benefit thereof. 18. An order of a court of law and, in particular, a consent order, must be read in its entirety for the purpose of ascertaining its true intent and purport. 19. The learned Single Judge in his order dated 13.9.2001 recorded as to how much amount was paid by the Respondent to the Appellant before the execution case was filed. The execution case admittedly was filed for recovery of the balance sum of Rs. 36,59,110/- together with interest at the rate of 15% per annum. The settlement between the parties was arrived at at this juncture in terms whereof it was agreed: 1. The judgment debtor shall pay the balance amount of Rs. 36,59,110 in the instalments. 2. For the past period, i.e., from the date of Decree till date the judgment debtor shall pay the lump sum interest of Rs. 6,35,082. 3. The judgment debtor shall pay 15% interest on the principal amount of the further period. 20. Not only the Respondent agreed to pay a lump sum interest of Rs. 6,35,082 but also became agreeable to pay 15% interest on the principal amount of the further payment. On calculation, a sum of Rs. 42,04,222/- was found to be payable out of which the judgment debtor had paid a sum of Rs. 10,00,000/- by way of three demand drafts. Appropriating the said amount, the outstanding principal sum came to Rs. 26,69,110. However, the balance amount outstanding as on that day came to Rs. 32,04,222. It was that amount which was to be liquidated by paying instalment of Rs. 6 lakhs each per month. It is in the aforementioned backdrop, the undertaking given before the learned Single Judge of the High Court by the Respondent herein is to be construed. 21. The contention of the learned counsel appearing on behalf of the Appellant is that once a default is committed by the Respondent, the Appellant in terms thereof , would be entitled to execute the balance decree immediately which would mean he would be entitled to a further sum of about Rs. 41 lakhs, which was waived by him. We do not agree. The word decree after the word balance, in our opinion, has been used loosely. The matter might have been different if the amount payable under the compromise entered into by the parties in the execution case would have been less than the amount paid by the Respondent to the Appellant in terms of the consent decree passed originally. It is not so. Whereas under the original decree, a sum of Rs. 41,69,110/- was payable, in terms of the consent order passed in the execution case, a sum of Rs. 42,04,222/- became payable. The sum which was waived by the Appellant did not form part of the consent decree. It was merely a claim. Such a claim never fructified into any decree and in that view of the matter the plea of Respondent being liable to pay the said amount to the Appellant despite the fact that no decree in relation thereto was passed cannot be countenanced.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]8. It is, however, not in dispute that the judgment debtor has paid the entire amount together with interest in terms of the consent order dated 5.2.2002 passed in the aforementioned execution petition. It is, furthermore, not in dispute that the contempt application filed against the Respondent herein by the Appellant for violating the undertaking by him has ultimately been dismissed15. There cannot, thus, be any doubt that the compromise entered into by and between the parties hereto in the execution proceedings was valid in law. The Appellant moreover does not say that the same was not acted upon. Admittedly, he received the entire amount thereunder, albeit belatedly; but even therefor the Respondent applied for and obtained extension of time to pay the same16. Rightly or wrongly, the learned Single Judge of the Delhi High Court by an order dated 28.8.2002 extended the time to the Respondent herein for paying the decretal amount with interest upto 23.7.2002. The Appellant herein had accepted such amount and that order was not questioned and, thus, the same had attained finality. What was questioned was the liability incurred by the Respondent not being able to adhere to the terms thereof17. If the orders of extension have validly been passed, the order of the court stood complied with. It may be true that the order dated 1.4.2002 was not questioned by the Respondent before this Court but then no direction was issued therein. No judgment was passed. The said order was passed without issuing any notice to the Respondents. The appeal was disposed of as having become infructuous. It was, thus, not final. Thereby, merely a liberty had been granted to the Appellant to agitate his grievances before the learned Single Judge for execution as well as for contempt. By reason of the said order, alone the Appellant could not put forth his claim. The Appellant, thus, cannot take any benefit thereof19. The learned Single Judge in his order dated 13.9.2001 recorded as to how much amount was paid by the Respondent to the Appellant before the execution case was filed. The execution case admittedly was filed for recovery of the balance sum of Rs. 36,59,110/- together with interest at the rate of 15% per annum.20. Not only the Respondent agreed to pay a lump sum interest of Rs. 6,35,082 but also became agreeable to pay 15% interest on the principal amount of the further payment. On calculation, a sum of Rs. 42,04,222/- was found to be payable out of which the judgment debtor had paid a sum of Rs. 10,00,000/- by way of three demand drafts. Appropriating the said amount, the outstanding principal sum came to Rs. 26,69,110. However, the balance amount outstanding as on that day came to Rs. 32,04,222. It was that amount which was to be liquidated by paying instalment of Rs. 6 lakhs each per month. It is in the aforementioned backdrop, the undertaking given before the learned Single Judge of the High Court by the Respondent herein is to be construedThe contention of the learned counsel appearing on behalf of the Appellant is that once a default is committed by the Respondent, the Appellant in terms thereof , would be entitled to execute the balance decree immediately which would mean he would be entitled to a further sum of about Rs. 41 lakhs, which was waived by him.We do not agree. The word decree after the word balance, in our opinion, has been used loosely. The matter might have been different if the amount payable under the compromise entered into by the parties in the execution case would have been less than the amount paid by the Respondent to the Appellant in terms of the consent decree passed originally. It is not so. Whereas under the original decree, a sum of Rs. 41,69,110/- was payable, in terms of the consent order passed in the execution case, a sum of Rs. 42,04,222/- became payable. The sum which was waived by the Appellant did not form part of the consent decree. It was merely a claim. Such a claim never fructified into any decree and in that view of the matter the plea of Respondent being liable to pay the said amount to the Appellant despite the fact that no decree in relation thereto was passed cannot be countenanced