Bhoop Singh vs. Ram Singh Major & Ors. [(1995) 5 SCC 709]: Supreme Court of India
Conditions for recognition of compromise decree for effective mode of transfer
18. The legal position qua clause (vi)
can, on the basis of the
aforesaid discussion, be summarised
as below:
(1) Compromise decree if bona fide, in the sense that the
compromise is not
a device to
obviate payment of stamp duty and frustrate the law relating to registration, would not
require registration. In a
converse situation, it would require registration. (2) If the compromise
decree were to create for the first time right, title or interest in immovable
property of the value of Rs.100 or upwards in favour of any party to the suit
the decree or order would require registration.
(3) If
the decree were
not to attract
any of the clauses of subsection (1) of Section
17, as was the position in the aforesaid Privy Council and this Court’s cases,
it is apparent that the decree would not require registration.
(4) If the decree were not to embody the
terms of compromise, as was the
position in Lahore case, benefit from
the terms of
compromise cannot be derived, even if a suit were to be
disposed of because of the compromise in question.
(5) If the property dealt with by the
decree be not the “subject matter of the suit or proceeding”, clause (vi) of
subsection (2) would not operate, because of the amendment of this clause by
Act 21 of 1929, which has its origin in the aforesaid decision of the Privy
Council, according to which the original clause would have been
attracted, even if it
were to encompass property not litigated.”