Inherent Powers -- Exercise Where Fraud is Alleged -- Inherent power under S.151 CPC can be exercised for ends of justice where fraud is alleged and cannot be defeated by procedural irregularity
(i) Civil Procedure Code, 1908, S.151 -- Inherent Powers -- Exercise Where Fraud is Alleged -- The power under Section 151 CPC can be exercised by the court for the ends of justice, especially where fraud is alleged to have been perpetuated. Such power cannot be defeated on account of irregularity in procedure. (ii) Limitation Act, 1963, S.3 -- Limitation -- Applicability Against Acts of Parties -- The law of limitation applies against the acts of parties. It does not apply against the action of the Court. (iii) Civil Procedure Code, 1908, O.23 R.3 -- Compromise Decree -- Absence of Authorization to Sign on Behalf of Party -- A compromise decree requires the voluntary consent of the party to the compromise, as mandated by Order 23 Rule 3 CPC. Where the essential facts forming the basis of the compromise are themselves contested, and there is no express authorization by a party permitting another person to sign the compromise on his behalf, nor any material on record showing the exigent circumstances that prompted counsel to act without clear approval, the voluntary aspect essential to a compromise decree cannot be established. Non-compliance with Order 23 Rule 3 CPC renders the resulting compromise contrary to law.
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