This article is written by Mr Sonu Choudhary, a student at the Faculty of Law (Delhi University). If you also want to publish your articles or case interpretations/summaries, send your work to niyamskanoon09@gmail.com.
Introduction
A consent decree is a court decree passed on the basis of a settlement or compromise between the parties. Since it reflects the mutual agreement of litigants, it carries binding force similar to a regular decree. However, a crucial question arises: Can such a decree be appealed or challenged.
Under the Code of Civil Procedure, 1908 (CPC), the general rule is that appeals against consent decrees are barred. Yet, in exceptional situations, Indian courts have permitted challenges. This article explores the grounds of appeal against consent decrees, supported by legal provisions and leading judgments.
Legal Framework under CPC
The CPC lays down clear rules regarding consent decrees. Section 96(3) CPC provides that no appeal shall lie from a decree passed by the Court with the consent of parties. This makes it clear that a normal appeal route is closed.
Further, Order XXIII Rule 3 CPC governs compromises of suits. It requires that the compromise must be lawful, reduced into writing, and signed by the parties. The court is bound to pass a decree based on such a lawful compromise.
Additionally, Order XXIII Rule 3A CPC bars the filing of a separate suit to set aside a decree on the ground that the compromise was not lawful. This means that if a party wishes to challenge a consent decree, they must approach the same court or higher court through specific remedies.
Grounds for Challenging a Consent Decree
Despite the restrictions, Indian law recognizes certain limited grounds where a consent decree may be challenged. These include:
1. Fraud- Fraud is one of the strongest grounds. If a party’s consent was obtained by concealing material facts, forging signatures, or producing false documents, the decree becomes invalid. The Supreme Court in A.V. Papayya Sastry v. Government of A.P. (2007) held that fraud vitiates all judicial acts, including consent decrees.
2. Misrepresentation or Mistake- If the consent was obtained through misrepresentation or a mistake of fact or law, the compromise cannot be considered valid. For instance, if one party was misled about the legal consequences of signing the compromise, the decree may be challenged.
3. Coercion and Undue Influence- A consent decree must reflect free will. If a party signed the compromise under threat, pressure, or undue influence, the decree cannot stand. Courts have repeatedly emphasized that a lawful compromise must be voluntary.
4. Lack of Authority- Sometimes, lawyers or agents enter into compromises without explicit authority from their clients. If it is shown that the advocate had no power to compromise, the consent decree can be set aside.
5. Unlawful Compromise- The law requires that a compromise must be lawful. If it is based on unlawful consideration, violates statutory provisions, or is against public policy, the decree loses its validity.
6. Jurisdictional Defect- Even consent cannot confer jurisdiction on a court. If a decree was passed by a court lacking jurisdiction, it remains void despite party consent.
Remedies Available
When challenging a consent decree, the following remedies are available:
- First, the aggrieved party may move an application before the same court under Order 23 Rule 3 CPC, claiming that no lawful compromise existed. This is the primary remedy provided under law.
- Second, in rare cases, parties may approach higher courts through appeals or revisions despite Section 96(3), particularly in situations involving fraud or jurisdictional errors.
- Third, a review petition may be filed before the same court if there is an error on record or new evidence comes to light.
Landmark Judgments
Several judgments clarify the scope of challenges to consent decrees.
- In Banwari Lal v. Chando Devi (1993), the Supreme Court held that a separate suit to set aside a consent decree is barred, and the remedy lies before the same court.
- In Pushpa Devi Bhagat v. Rajinder Singh (2006), it was held that no appeal is maintainable under Section 96(3) CPC.
- In A.V. Papayya Sastry (2007), the Court reaffirmed that fraud vitiates even the most solemn judicial proceedings, including compromise decrees.
Conclusion
A consent decree is ordinarily final and binding. The law bars appeals against it under Section 96(3) CPC. However, where the decree is tainted by fraud, misrepresentation, coercion, mistake, unlawful compromise, lack of authority, or jurisdictional defect, it can be challenged. The proper course is usually to file an application under Order 23 Rule 3 CPC before the same court, rather than filing a fresh suit. This balance ensures that genuine compromises are respected, but parties are also protected from being bound by unlawful or fraudulent agreements.
FAQs
Q1: Can a consent decree be appealed in India?
No, Section 96(3) CPC bars appeals. However, it can be challenged on limited grounds such as fraud or lack of jurisdiction.
Q2: Can a separate suit be filed to cancel a consent decree?
No. Order 23 Rule 3A CPC prohibits a separate suit. The remedy lies before the same court.
Q3: What is the remedy if a consent decree is fraudulent?
The party must file an application before the same court under Order 23 Rule 3 CPC, supported with evidence of fraud.
