His Lawyer Signed The Compromise. Twenty-Five Years On, It Was Undone.
A partition suit was compromised in 1994 and a final decree drawn in 1997. A quarter of a century later the decree fell, because nobody could show the defendant had authorised his counsel to sign.
The Court held that there was no express authorisation by the defendant allowing his counsel to sign the compromise on his behalf, and nothing on record to show exigent circumstances that prompted counsel to act without clear approval. In the absence of that, the ‘voluntary’ element required by Order XXIII Rule 3 CPC cannot be established, so the requirements of the Rule were not complied with. The setting aside of the compromise decree was upheld and the 1989 suit goes to trial, thirty-seven years on.
- Order XXIII Rule 3 requires a voluntary compromise, and voluntariness has to be demonstrable on the record.
- Counsel needs express authority to sign a compromise on a party's behalf.
- Exigent circumstances might excuse it — but they too have to appear on the record, and did not here.
- Delay did not save the decree. The challenge came a quarter of a century later and still succeeded.
- Court
- Supreme Court of India
- Bench
- Justice Sanjay Karol, Justice N Kotiswar Singh
- Citation
- 2026 INSC 662
- Reported
- [2026] 7 S.C.R. 504
- Case
- CIVIL APPEAL/8739/2026
- Decided
- 30 June 2026
- Outcome
- Appeal dismissed; setting aside of the compromise decree upheld
What happened
A partition suit sought a one-fourth share in the property of a common ancestor. During its pendency a compromise petition was filed jointly by the plaintiffs and defendants and accepted by the Sub-Judge in February 1994. A final decree followed in May 1997.
A quarter of a century later, the legal representatives of the fifth defendant filed a miscellaneous case to set the compromise decree aside, saying it had been obtained by fraud and without his signature. The trial court allowed it and the High Court dismissed the appeal.
Why the decree could not stand
There was no express authorisation by the fifth defendant allowing his counsel to sign the compromise on his behalf, and nothing on the record to show the exigent circumstances that prompted counsel to act without seeking clear approval.
Without that, the voluntary aspect mandated by Order XXIII Rule 3 — essential to a compromise decree — cannot be established. The requirements of the Rule were therefore not complied with.
The Court acknowledged the difficulty of taking a 1989 suit to trial thirty-seven years later, but said it is not possible to decide the rights of the parties without collecting and weighing the evidence, whatever may be available.
Who argued it
Appearances as recorded in the judgment of the Court.
Frequently asked
Can my lawyer sign a compromise for me?
Only with express authorisation on the record. Without it the voluntary element required by Order XXIII Rule 3 cannot be established, and the decree can be set aside.
How long can a compromise decree be challenged?
This one was challenged after about twenty-five years and the challenge succeeded.
Recording a compromise safely
- Get the party's own signature on the compromise petition wherever it can be obtained.
- Where counsel signs, put the express written authority on the record at the same time.
- If the party cannot sign, record the exigent circumstances in the petition itself — the Court looked for them and found nothing.
- Remember there is no effective limitation comfort: this decree stood for twenty-five years and still fell.
Source. Supreme Court of India, 2026 INSC 662, [2026] 7 S.C.R. 504, CIVIL APPEAL/8739/2026, decided 30 June 2026 by Justice Sanjay Karol, Justice N Kotiswar Singh. This explainer is written from the judgment text as reported.
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