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of <h1>Supreme Court affirms High Court's decision on deposit compliance with compromise decree terms</h1> The Supreme Court upheld the High Court's decision, ruling that the respondent's deposit on 2-1-1960 complied substantially with the compromise decree ... - Issues Involved:1. Construction of the Compromise Decree2. Timeliness of the Deposit3. Legal Consequences of Court Holidays4. Execution of the Compromise Decree5. Nature of Consent DecreesIssue-wise Detailed Analysis:1. Construction of the Compromise Decree:The appeals revolve around the interpretation of the compromise decree dated 24-6-1959. The key terms of the decree include:- The defendant agrees to receive a lakh of rupees and other specified amounts from the plaintiff by 1-1-1960.- The plaintiff must deposit the amount in court by the specified date.- Failure to deposit by 1-1-1960 would result in automatic dismissal of the suit with costs.2. Timeliness of the Deposit:The respondent applied for a challan on 22-12-1959 and received it on 24-12-1959. Since December 31, 1959, and January 1, 1960, were holidays, the respondent deposited the amount on 2-1-1960. The core issue is whether this deposit was within the time specified in the decree. The appellant argued that the respondent should have deposited the amount earlier and must suffer the consequences of the court being closed on the last day.3. Legal Consequences of Court Holidays:The court considered the principle that if an act cannot be performed due to circumstances beyond one's control, such as court holidays, it may be performed on the next available day. This principle is supported by Halsbury's Laws of England and various case laws, including Fateh Khan v. Chhajju and Muhammad Jan v. Chiam Lal. The court concluded that the respondent had the liberty to deposit the amount on 1-1-1960, and the closure of the court justified the deposit on 2-1-1960.4. Execution of the Compromise Decree:The appellant contended that the execution court had no right to alter the terms of the decree. However, the court held that the execution court could interpret the decree in light of applicable laws. The deposit made on 2-1-1960 was deemed in compliance with the decree, considering the legal principle that parties are entitled to perform an act on the next practicable day if the court is closed on the last day.5. Nature of Consent Decrees:The appellant argued that a compromise decree is a contract, and failure to perform within the stipulated time should not be excused. However, the court observed that a consent decree is more than a contract. It is an order of the court and must be obeyed unless set aside. The court referred to various cases, including Morris v. Barret and Govind Waman v. Murlidhar Shrinivas, to highlight that different considerations apply to consent decrees compared to ordinary contracts.Conclusion:The Supreme Court upheld the High Court's decision, concluding that the deposit made by the respondent on 2-1-1960 was in substantial compliance with the terms of the compromise decree. The appeals were dismissed without any order as to costs.
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