Mst. NASIM AKHTAR vs KHALIL and 10 others
This appeal through leave of the Court arose from a property dispute that had generated multifarious litigation between the parties. During the hearing, the parties successfully negotiated an out-of-court settlement through their respective counsel. The core legal question concerned the lawful resolution and final compromise of conflicting claims over the disputed property and the inheritance shares therein. The Supreme Court disposed of the appeal in terms of the written compromise memorandum produced and signed by the counsel for both sides. The Court held that upon the appellant depositing the agreed sum of Rs. 70,000 in Court for payment to the legal heirs of Malik Chanan Din representing their 1/12th share, all further claims to the property by the respondents or persons claiming through them would stand relinquished. The key principle laid down is that the Court actively encourages and gives effect to lawful out-of-court compromises reached by parties to bring an end to protracted litigation.
- Can the Supreme Court dispose of an appeal on the basis of a written compromise agreement reached between the parties out of court?
- How are payments agreed upon in a court compromise involving multiple legal heirs to be deposited and disbursed?
1. ' MUHAMMAD AFZAL ZULLAH, J.--This appeal through leave of the Court came up for hearing this morning. Learned counsel for the respondents stated that in pursuance of the order of this Court dated 1st March, 1989 the possession of entire property in dispute having been handed over to the appellant's side, the keys have also been accordingly delivered. Learned counsel for the appellant accepted this statement as correct.
2. ' Both the learned counsel, to be fair to the parties, made a request that this is one of those cases in which the Court should allow further time to the parties to settle the dispute out of the Court "as it has already led to multifarious litigation causing harm to both sides". Time having, accordingly, been allowed, learned counsel re-appeared after some time and stated that the subject-matter of the dispute having been settled on the term that the appellant side shall pay Rs,70,000 to the respondent side in token of final settlement of all disputes relating to the property in question.
3. There remained some dispute as to how this amount is to be paid and to whom. Learned counsel for the appellant stated that the amount shall not be paid to any person other than "all the legal heirs of Malik Chanan Din on the respondents' side". After some consultation amongst themselves, learned counsel for the respondents agreed to the suggestion that if the amount is deposited in this Court, it will be received only by the legal heirs of Malik Chanan Din from the respondents' side.
4. Both the learned counsel were then asked by the Court to put this aspect of the settlement in writing. They have done so by producing a written memorandum signed/endorsed by both of them, as follows:- "The parties have compromised. The respondents claim 1/12th share in the premises in dispute as an inheritance of Malik Chanan Din deceased.
5. ' The petitioner has agreed to pay Rs,70,000 to the legal heirs of the said Malik Chanan Din deceased. The petitioner is prepared to deposit the agreed amount in Court.
6. Petitioner Through: Sd/-xxxxxx Mazharul Haq, Advocate, 7-3-89.
7. ' The respondents are ready to accept the amount of Rs,70,000 as the price of their legal share of 1/12th in dispute and will receive the same from the Court in lieu of receipt. Sd/-xxxxx Advocate of respondents 7-3-89."
8. The efforts made by both the learned counsel are appreciated. This appeal is disposed of in terms of the afore reproduced settlement out of the Court. The respondents' side and all persons claiming through them have given up any further claim to the property in dispute on the appellant depositing Rs,70,000 in this Court as agreed. . It shall be paid to persons concerned in terms of the afore reproduced memorandum. Any dispute with B regard to payment shall first be dealt with by both the learned counsel in mutual consultation, for its resolution.
9. ' This appeal accordingly stands disposed of. There shall be no order as to costs. It is thus expected that all litigation shall now end and the parties shall make statements whenever necessary to achieve this purpose.