Compromise decree in rent-control eviction upheld where statutory liability was implied from the record and the decree remained executable.

A compromise decree for eviction under the Bombay Rents, Hotel and Lodging House Rates Control Act was upheld where the record, including the plaint and compromise petition, showed expressly or by necessary implication that the tenant was liable to eviction and the compromise was not contrary to the statute. The court recording the compromise under Order XXIII Rule 3 CPC was not required to recite an express satisfaction in so many words; such satisfaction is presumed unless rebutted. On the admitted arrears, mesne profits, and electric charges, and the absence of any genuine dispute on standard rent or fixation proceedings, the tenant was treated as having impliedly admitted liability under section 12(3)(b), and the decree was executable.

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Issues: Whether a compromise decree for eviction under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 was a nullity for want of an express recorded satisfaction or express admission, and whether such decree was executable.

Analysis: A compromise decree in a rent-control eviction matter is valid if the record shows, expressly or by necessary implication, that the tenant was liable to eviction under the statutory grounds and the compromise is not contrary to the Act. The court recording the compromise under Order XXIII Rule 3 of the Code of Civil Procedure need not state in so many words that it is satisfied about legality; satisfaction is presumed unless the contrary is shown. On the materials in the plaint and compromise petition, the admitted arrears, mesne profits, and electric charges, together with the absence of any genuine dispute regarding standard rent or any proceeding for fixation of standard rent, showed that the tenant had impliedly admitted liability under section 12(3)(b) of the Act.

Conclusion: The compromise decree was not a nullity and was executable.

Final Conclusion: The appeal succeeded, the High Court's view was set aside, and the execution of the compromise decree was directed to proceed.

Ratio Decidendi: A compromise decree for eviction under a rent-control statute is valid and executable where the compromise or surrounding record shows, expressly or impliedly, that the tenant is liable to eviction under the statute and the agreement is lawful; absence of an express recital of judicial satisfaction does not by itself invalidate the decree.

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