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Madras High Court· 16 September 2026

Does Order XXIII Rule 3A of the Code of Civil Procedure, 1908 bar a suit where the memo is not signed by both parties?

Natarajan v. Lakshmi
SA.1843/2004 · 2026:MHC:3807 · S.A. No.1843 & 1844 of 2004
Coram: Justice R.Sakthivel
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Answer

Order XXIII Rule 3A of the Code of Civil Procedure, 1908 does not bar a suit where the memo is not signed by both parties.

No. Order XXIII Rule 3A of the Code of Civil Procedure, 1908 does not bar a suit where the memo is not signed by both parties. After the 1976 amendment a compromise must be in writing and signed by the parties; where the memo submitting to the decree carried only one alleged signature, with nothing on record to show that both parties appeared and explained the compromise or that their identity was verified, it is not a compromise memo in the technical sense and the bar does not apply.

Headnote

Property — Ancestral property — Purchase from sale proceeds of ancestral property — Suit for bare injunction — Denial of title — Decree obtained by fraud — Code of Civil Procedure, 1908 — Order XXIII Rule 3A — Indian Evidence Act, 1872 — s.44 — Property — Character of the property purchased — Held: Property purchased with the proceeds of sale of ancestral property is ancestral property. (¶22) Code of Civil Procedure, 1908 — Suit for bare injunction — Denial of title — Held further: A suit for bare injunction is maintainable despite denial of title where the question of title is simple and not complicated, and only a complicated question of title requires the parties to be relegated to a suit for declaration. (¶25) Code of Civil Procedure, 1908 — Order XXIII Rule 3A — Memo not signed by both parties — Held further: Order XXIII Rule 3A of the Code of Civil Procedure, 1908 does not bar a suit where the memo is not signed by both parties. (¶33) Evidence — Decree obtained by fraud — Indian Evidence Act, 1872, s.44 — Held further: A decree obtained by fraud can be challenged at any time, even in collateral proceedings, fraud vitiating all solemn acts. (¶34) Second appeals allowed in part; suit remanded. (¶35)

Headnote

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In the Court's own words
Paragraph 33Furthermore, learned Counsel for the respondent would submit before this Court the set of rulings tabulated above to vehemently contend that a Compromise Memo or Consent Decree can be challenged in the same proceedings alone and separate Suit would not lie in view of Order XXIII Rule 3A of the Code of Civil Procedure, 1908. There is no quarrel with the said legal position but the same is not applicable to the present case, for the following reason. After the 1976 amendment to the Code of Civil Procedure, 1908 vide Code of Civil Procedure (Amendment) Act, 1976, a compromise shall be in writing and singed by the parties. But in Ex-B.4 - Memo said to be filed by the plaintiff herein in O.S. No.111 of 1996 submitting to the Decree, only alleged signature is found. There is no defendant's signature or her Counsel's signature. There is nothing available on record to show that both the plaintiff and the defendant appeared before the Court on that day and explained the compromise. Nor is there anything available on record to show that the identity of the parties were verified that day. In these circumstances, Ex-B.4 is not a compromise memo in technical sense and hence, the aforesaid legal position does not apply to the instant case. Further, the plaintiff herein had filed Ex-A.8 - Complaint dated July 15, 1997 before the Trial Court on the administrative side soon after filing of Ex-B.4 - Memo stating that he never appeared before the Court nor signed the memo as alleged. Accordingly, he prayed to stop the execution proceedings. It appears that the plaintiff could not get any relief from there and hence, he has filed O.S. No. 347 of 1997 seeking to set aside the Decree.
Acts & Sections
Order XXIII Rule 3A Code of Civil Procedure, 1908s.100 Code of Civil Procedure, 1908s.44 Indian Evidence Act, 1872

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Also decided in this judgment
Is property purchased with the proceeds of sale of ancestral property ancestral property?Is a suit for bare injunction maintainable despite denial of title where the question of title is simple and not complicated?Can a decree obtained by fraud be challenged at any time, even in collateral proceedings?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections