Habibullah vs Gulzar Hussain

Instant appeal has been filed by the appellant/defendant against the judgment and decree passed by learned Principal District Judge, Kargil on

17.12.2018, in a suit filed by the respondent/plaintiff for recovery of money, in accordance with the provisions contained in Order 37 of Civil

Procedure Code.

Vide the impugned judgment and decree, the learned trial court has passed the decree for an amount of Rs.25 lacs in favour of the

plaintiff/respondent as against the defendant/appellant alongwith interest @ 9% from the date of institution of the suit till its realization with costs.

During the pendency of the proceedings before this Court, it appears that the parties have entered into settlement and, accordingly, a joint

application, containing the terms of the settlement, has been made before this Court. Pursuant to the directions of this Court, the Registrar Judicial has

recorded the statements of parties touching the contents of the compromise arrived at between them. In their statements the parties have admitted the

contents of the compromise as well as its execution.

The terms of the settlement, as agreed between the parties, are given as under:-

“i) That the judgment debtor will pay in all a sum of Rs. 18.0 lacs. The said amount of Rs.18.0 lacs will be paid by the judgment

debtor in the following manner:-

a) That out of his total salary savings which have accumulated in view of the order passed by the Principal District Judge, Kargil, which

is approximately Rs.9.0 lacs, the same shall be received by Decree Holder Gulzar Hussain, from the Drawing and Disbursing Officer

(DDO) of the office of judgment debtor, by way of transfer to his Account No.3607040100000210, IFSC Code JAKAOGRAMEN, J&K

Grameen Bank Branch Kargil, thereby reducing the liability from Rs.18.0 lacs to Rs.9.0 lacs.

b) That the balance amount of Rs.9.0 lacs will be paid by the judgment debtor within a period of six months.

ii) That the total full and final amount payable by the judgment debtor will be only Rs.18.0 lacs. The cheque bearing Numbers 293265

dated 24.05.2016 for an amount of Rs.10.50 lacs and Cheque bearing No.243268 dated 24.05.2016 for an amount of Rs.7.85 lacs shall

stand cancelled and no amount shall be payable on the basis of these two cheques to the holders of these cheques. The loan agreement

dated 28.06.2016 and Hundi executed on 25.04.2016 shall also stand cancelled. No amount shall be claimed by Shabir Hussain, brother

of decree holder, in whose name above cheque were issued and to Mukhtar Ali in whose name Cheque bearing No:293272 dated

27.06.2016 for an amount of Rs.8.30 lacs shall also stand cancelled. Similarly, no amount shall be claimed by the decree holder on the

basis of the aforesaid cheque issued by the judgment debtor. In this manner all proceedings between the parties upon settlement shall

stand concluded.

iii) That should the judgment debtor fail to liquidate the entire amount of Rs.18.0 lacs within the time allowed, balance amount after

adjusting the amount already received by the decree holder, shall become payable alongwith interest at 10% per annum and the decree

holder will be free to take out execution proceedings against the judgment debtor.

iv) The settlement will be filed in all the proceedings including this Hon’ble court and the court of Principal District Judge, Kargil,

where the execution proceedings are pending with the request that the Execution Proceedings be disposed of accordingly.

v) This settlement is also signed by Shabir Hussain S/o Ghulam Mohammad R/o Hardas, Kargil and Mukhtar Ali S/o Murad R/o Latoo

Tehsil ad District Kargil, in token of acceptance of this settlement, in particular cheques issued in their favour and they also agree that

no amount shall be claimed by them from the judgment debtor on any ground whatsoever and all matters between them and the

judgment debtor shall stand finally settled.â€​

In view of the fact that the parties to this appeal have entered into a negotiated settlement, which has been admitted by them in their statements

recorded before the Registrar Judicial, the judgment and decree dated 17.12.2018, passed by the learned trial court, is modified to the extent indicated

in the compromise arrived at between the parties. The terms of compromise as quoted in para (4) of this order shall form part of the modified decree.

Accordingly, the appeal is disposed of in terms of the compromise arrived at between the parties with a direction to the executing court to proceed

further in the matter in accordance with the compromise arrived at between the parties.