M/S. CHITRALEKHA BUILDERS & ANR. THROUGH ANIL G. SHAH POWER OF ATTORNEY & HUSBAND OF THE PARTNERversusEMPLOYEES SONAL VIHAR CO-OP. HOUSING SOCIETY LTD. & ANR.

124                       [2021]
               SUPREME COURT     2 S.C.R. 124
                              REPORTS                      [2021] 2 S.C.R.


A              M/S. CHITRALEKHA BUILDERS & ANR.
           THROUGH ANIL G. SHAH POWER OF ATTORNEY &
                    HUSBAND OF THE PARTNER
                                        v.
          G.I.C. EMPLOYEES SONAL VIHAR CO-OP. HOUSING
B                      SOCIETY LTD. & ANR.
                         (Civil Appeal No. 946 of 2016)
                               MARCH 01, 2021
             [INDU MALHOTRA AND AJAY RASTOGI, JJ.]
C
             Code of Civil Procedure, 1908 – s.96 – Right of appeal –
      Appeal against judgment of High Court dismissing appeal filed by
      appellants against Consent Order dated 16.02.2005 in Suit No.
      1335/1988 to which appellant was not signatory – Appellants were
      not a party to the proceedings at the stage when the consent order
D     came to be passed on 16.02.2005, or the subsequent consent order
      dated 03.10.2005 in Suit No. 1335 / 1988 – High Court in the
      impugned judgment, recorded a finding that since Appellants were
      not a party to the proceedings, and the Order dated 16.02.2005
      was passed on the terms agreeable to the parties to the proceedings,
      it shall not be binding upon the Appellants, and their rights could
E
      be examined independently in the substantive suit No. 3162 / 2005
      filed at their instance (which is pending adjudication before High
      Court) – Propriety – Held: Proper – Since the Appellants were not
      a party to the Consent Terms as evident from the record, when the
      Orders came to be passed on 16.02.2005 followed with 03.10.2005,
F     it may not bind the Appellants – Its legal effect is open to be
      examined in the substantive suit filed at their instance independently
      on its own merits in accordance with law – Party – Consent decree.
            Disposing of the appeal, the Court
             HELD:1. Suit No. 1335/1988 was disposed of by the Court
G     on the consent terms arrived between the parties to the
      proceedings vide Order dated 16.02.2005 followed by Order dated
      03.10.2005. In the given circumstances, the Appellants who were
      later impleaded, have a right of appeal under Section 96 of the

H
                                       124
  M/S. CHITRALEKHA BUILDERS & ANR. v. G.I.C. EMPLOYEES SONAL              125
              VIHAR CO-OP. HOUSING SOCIETY LTD.


CPC. However, since the Appellants were not a party to the                A
Consent Orders, it was not open for the Court to examine the
legal effect of the Consent Orders dated 16.02.2005 and
03.10.2005 to which the Appellants were not a party. Once the
substantive suit has been filed at their instance questioning the
Consent Orders dated 16.02.2005 followed by 03.10.2005, the
                                                                          B
same is indeed open to be examined independently on its own
merits in the pending proceedings initiated at their instance. [Para
19][135-D-G]
      2. So far as the rights of the Appellants are concerned, the
same have been duly protected by the High Court in the impugned
judgment. The observations/findings which were recorded by the            C
High Court in the impugned judgment, in no manner, prejudiced
the rights of the Appellants, and the pending Suit No. 3162/2005
filed by the Appellant may be examined by the Court
independently on its own merits in accordance with law without
being influenced by the observations made by the High Court in            D
the impugned judgment. [Para 20][135-G-H; 136-A-B]
        CIVIL APPELLATE JURISDICTION : Civil Appeal No. 946 of
2016.
     From the Judgment and Order dated 22.07.2014 of the High Court
of Bombay in Appeal No. 558 of 2007 in Suit No. 1335 of 1988.             E

        Nikhil Nayyar, Sr. Adv. (A.C.)
      Jay Savla, Sr. Adv., Ms. Prerna Mehta, O. P. Bhadani, Advs. for
the Respondents.
        Anil G. Shah, Appellant-in-person                                 F
        The Judgment of the Court was delivered by
        INDU MALHOTRA, J.
      1. The present Civil Appeal has been filed assailing the Judgment
and Order dated 22.07.2014 passed by the Bombay High Court in Appeal      G
No. 558 / 2007 dismissed the appeal filed by the appellants against the
Consent Order dated 16.02.2005 in Suit No. 1335 / 1988 to which the
appellants are not the signatory to the proceedings
     2. The lis pertains to land admeasuring 5082 square yards bearing
Survey No. 218, CTS No. 727 situated in Village Mulund, Greater           H
126                SUPREME COURT REPORTS                       [2021] 2 S.C.R.


A     Bombay. The background facts of this litigation are briefly stated as
      follows :
            (i)      An Agreement to Sell dated 28.04.1980 was executed
                     between Defendant Nos. 1 to 52-Vaity family and the
                     Plaintiff-M/s. Chitralekha Builders (then comprising of one
B                    Kusum Gorule and Tukaram Baliram Nalwade), whereby
                     the Vaity family undertook to execute a Deed of
                     Conveyance in favour of Chitralekha Builders, or its
                     nominees, on receipt of Rs.35,00,000 towards the balance
                     consideration.
C           (ii)     On 09.05.1980, M/s. Chitralekha Builders entered into an
                     Agreement with a Society viz. G.I.C. SonalVihar Co-
                     operative Housing Society Ltd.-Respondent No.1 herein,
                     whereby it was agreed that Chitralekha Builders would
                     develop the suit property, and the constructed area would
                     be given to the Society after development.
D
            (iii)    On 01.07.1980, the Partnership between Kusum Gorule
                     andTukaram Baliram Nalawade stood dissolved vide a
                     Dissolution Deed.
            3. Suit No. 1335 / 1988
E            3.1. On the failure of the Vaity family to handover possession of
      the suit property, and execute the Sale Deed as per the Agreement dated
      28.04.1980, Respondent No. 1-Society and Respondent No.2-Kusum
      Gorule filed Suit No. 1335 / 1988 before the Bombay High Court against
      the Vaity family seeking specific performance of the said agreement.
F           3.2. During the pendency of the suit, M/s. Chitralekha Builders
      was re-constituted, and a Partnership Deed dated 08.04.1989 was
      executed between Respondent No.2-Kusum Gorule, Appellant No.2-
      Nina Anil Shah and two other partners viz.S.J.Pakhare and S.N.Gadekar.
      Pursuant to the Partnership Deed, the Appellant No. 2 was made a
      partner of M/s. Chitralekha Builders to the extent of 50%.
G
            3.3. Subsequently, a Supplementary Deed dated 26.01.1996 was
      executed between Respondent No.2-Kusum Gorule, Appellant No.2-
      Nina Anil Shah and the two other partners, whereby S.J.Pakhare
      relinquished his entire share in the partnership in favour of Appellant
      No.2; and S.N.Gadekar relinquished his share equally between Appellant
H     No.2 and Respondent No.2.
  M/S. CHITRALEKHA BUILDERS & ANR. v. G.I.C. EMPLOYEES SONAL                  127
    VIHAR CO-OP. HOUSING SOCIETY LTD. [INDU MALHOTRA, J.]


      3.4. The Bombay High Court appointed a Court Receiver of the            A
property by Order dated 31.08.1991 passed in Notice of Motion No.
1311 / 1988 filed in Suit No. 1335 / 1988. It was noted that Respondent
No.2 had taken possession of the suit property, and constructed a
boundary wall around the property.
       3.5. The Appellants filed Chamber Summons No. 1334 / 2004 for          B
impleadment as co-plaintiffs in Suit No. 1335 / 1988. The Respondents
filed Chamber Summons to transpose themselves as Defendants.
       The Chamber Summons filed by the parties were disposed of by
a common order dated 26.10.2004 passed by the learned single judge of
the High Court. The Chamber Summons filed by the appellants for               C
impleadment as co-plaintiffs was dismissed as not maintainable, since a
party could not force himself to be a co-plaintiff in the Suit. R.1-Society
was transposed as Defendant No. 54.
      3.6. The Appellants filed Appeal No. 598 / 2005 against the Order
dated 26.10.2004 rejecting their Chamber Summons for impleadment              D
before the division bench of the High Court.
      3.7. First consent decree dated 16.02.2005
      During the pendency of the aforesaid Appeal, the Respondent
No. 2 entered into a compromise with the Vaity family on 16.02.2005,
and drew up Consent terms, whereby the Vaity family agreed to execute         E
the Conveyance Deed in favour of Respondent No.2 / nominees on
receipt of the balance consideration of Rs.35 Lacs. The agreement dated
28.04.1980 between the Vaity family and M/s. Chitralekha Builders stood
cancelled. It is relevant to note at this stage that the appellants had not
been impleaded as parties to the suit.                                        F
      Pursuant to the consent terms arrived between R.2-Kusum Gorule
and the Vaity family, the learned Single Judge passed a Consent Decree
dated 16.02.2005, whereby Suit No. 1335 / 1988 was partly decreed as
per the Consent Terms (First Consent Decree). It was however
observed that the Suit would continue with respect to Defendant No.54-
                                                                              G
Society, which was now re-transposed as the Plaintiff.
      3.8. On 26.07.2005, the Respondent No. 2-Kusum Gorule sold
the suit property to M/s. Oswal Enterprises / Builders, who were
subsequently impleaded as Defendant No. 57 in Suit No. 1335 / 1988.
                                                                              H
128            SUPREME COURT REPORTS                          [2021] 2 S.C.R.


A            3.9. The appellants filed Chamber Summons No. 961 / 2005 in
      Appeal No. 598 / 2005 seeking amendment to the original Chamber
      Summons No. 1334/2004, praying that the appellants be impleaded as
      Defendants instead of co-plaintiffs. A division bench of the High Court
      by Order dated 19.08.2005 allowed the Appeal alongwith the Chamber
      Summons No. 961 / 2005, and directed that the appellants be added as
B
      Defendants in the Suit. It was held that the appellants were necessary
      parties to effectuate the final adjudication of disputes.
            3.10. Appeal against the first consent decree
             Upon being impleaded as Defendants in Suit No. 1335 /1988, the
C     appellants filed Appeal No. 558 / 2007 to challenge the consent decree
      dated 16.02.2005. The High Court by the impugned order dated
      22.07.2014 dismissed the Appeal, and held that the appellants were not
      parties to the Consent Terms dated 16.02.2005, and would not be bound
      by the same. The rights of the appellants were not affected by the
      Consent terms, and therefore, the order dated 16.02.2005 did not warrant
D     interference.
            The present Civil Appeal has been filed to challenge the Order
      dated 22.07.2014.
            3.11. Second Consent decree dated 03.10.2005
E           On 03.10.2005, the Respondent Nos. 1 and 2 entered into a
      compromise with Oswal Enterprises, wherein it was agreed that
      Respondent No. 1 would transfer the suit property to Oswal Enterprises
      on receipt of Rs.50 Lacs, and would make no claim on the suit property.
      The learned single judge took the draft amendment on record, and
F     impleaded Oswal Builders as Defendant No. 57. The Suit No. 1335 /
      1998 was decreed as per the Consent Terms (Second Consent Decree).
      On an objection being raised by the appellants, the High Court granted 4
      weeks to initiate appropriate proceedings to challenge the Consent decree,
      and directed the Court Receiver not to handover possession of the suit
      property for 4 weeks. The Suit was accordingly disposed of.
G
            4. Suit No. 3162 / 2005
             Pursuant to the Order dated 03.10.2005, the Appellant No.2 filed
      Suit No. 3162 / 2005 before the Bombay High Court for a declaration
      that the 1st and 2nd Consent decrees dated 16.02.2005 and 03.10.2005,
      were illegal and void.
H
  M/S. CHITRALEKHA BUILDERS & ANR. v. G.I.C. EMPLOYEES SONAL                 129
    VIHAR CO-OP. HOUSING SOCIETY LTD. [INDU MALHOTRA, J.]


      M/s. Chitralekha Builders was impleaded as Defendant No.1,             A
Kusum Gorule was impleaded as Defendant No.2, and M/s. Oswal
Enterprises was impleaded as Defendant No.3.
     It was prayed that :
     “(a)   this Hon’ble Court be pleased to declare that the partnership
            firm M/s Chitralekha Builders stands dissolved on                B
            15.07.2004 or from such other date as this Hon’ble Court
            may deem fit and proper;
     (b)    this Hon’ble Court be pleased to order for dissolution and
            winding up of affairs of the partnership firm M/s Chitralekha
            Builders under the order and directions of this Hon’ble Court.   C

     (c)    this Hon’ble Court be pleased to order for taking accounts
            of the partnership firm M/s Chitralekha Builders from the
            date of dissolution or from such other date as this Hon’ble
            Court may deem fit and proper and the shares of the plaintiff
            and the defendant no. 2 be ascertained and ordered to be         D
            paid over.
     (d)    for the purposes aforesaid, necessary directions be given
            and orders be passed;
     (e)    this Hon’ble Court be pleased to declare that consent decree
                                                                             E
            dated 16.02.2005 passed in suit No. 1335 of 1998 is bad in
            law, illegal and void and not binding upon the suit property;
     (f)    this Hon’ble Court be pleased to further declare that the
            consent decree dated 03.10.2005 passed in suit no. 1335 of
            1998 is bad in law, illegal and void and not binding upon the
                                                                             F
            suit property;
     (g)    this Hon’ble Court be pleased to declare that the purported
            conveyance dated 25.07.2005 executed in favour of the
            defendant no. 3 of the suit property is bad in law, void,
            inoperative and not enforceable against the suit property.
                                                                             G
     (h)    this Hon’ble Court be pleased to pass the decree revoking
            and cancelling the purported conveyance dated 26.07.2005
            executed in favour of the defendant no. 3 in respect of the
            suit property.

                                                                             H
130               SUPREME COURT REPORTS                          [2021] 2 S.C.R.


A           (i)     Pending the hearing and final disposal of the suit court
                    receiver, High Court, Bombay or any other any fit and proper
                    person be appointed as the receiver in respect of the suit
                    property more particularly described in Schedule annexed
                    to the plaint and marked Exhibit-B with all powers under
                    Order 40 of the Code of Civil Procedure, 1908;
B
            (j)     pending the hearing and final disposable of the suit the
                    defendants no. 2 and 3, their agents, servants and/or any
                    person acting or claiming through them be restrained by an
                    interim order and injunction of this Hon’ble Court from
                    dealing with, disposing of or creating any third party interest
C                   or carrying out development works of any nature
                    whatsoever in the suit property more particularly described
                    in the Scheduled annexed to the plaint and marked Exhibit-
                    B.
            (k)     ad-interim reliefs in terms of prayers (i) and (j) above be
D                   granted;
            (l)     Cost of the suit be awarded to the plaintiff;
            (m)     Such other and further reliefs as the nature and
                    circumstances of the case may require be granted.”
E          During the course of hearing, we were informed that the Suit
      No.3162/2005 is pending at the stage of recording of evidence.
            5. Arbitration proceedings
             5.1. The inter se disputes between Appellant No.2-Nina Anil Shah
      and Respondent No.2-Kusum Gorule led to the invocation of arbitration
F
      proceedings. The Bombay Court by Order dated 22.07.2005 appointed
      Justice A.C. Agarwal, retired Chief Justice of the Madras High Court
      as the sole arbitrator.
            5.2. The sole arbitrator passed an Award on 01.08.2006 holding
      that the partnership firm-Chitralekha Builders was dissolved on
G     15.07.2004. The suit property was not an asset of the partnership firm.
      The Appellant No. 2 was directed to pay Rs.62,18,324 i.e. 50% of the
      expenses of the partnership firm with interest @ 12 % p.a.
            5.3. The appellants filed Objections to set aside the award u/s. 34,
      which were dismissed byOrder dated 03.10.2006.
H
  M/S. CHITRALEKHA BUILDERS & ANR. v. G.I.C. EMPLOYEES SONAL                   131
    VIHAR CO-OP. HOUSING SOCIETY LTD. [INDU MALHOTRA, J.]


      The appellants filed Appeal No. 813 / 2006 u/S. 37 of the 1996           A
Act, wherein by Order dated 21.07.2014, the division bench of the High
Court remanded the application u/S. 34 for fresh consideration.
       5.4. A single judge of the High Court by Order dated 05.06.2017
partly allowed the application u/S. 34, and set aside the claim for expenses
of the partnership firm.                                                       B
      5.5. The appellant No. 2 filed Appeal No. 266-268 / 2017 under
Section 37 of the 1996 Act before the High Court, which is currently
pending consideration before the division bench.
      6. Proceedings before the Supreme Court
                                                                               C
       The challenge in the present Civil Appeal is limited to the Order
dated 22.07.2014 passed by a division bench of the High Court dismissing
the appeal being Appeal No. 558 / 2017 filed by the appellants to challenge
the 1st Consent Decree dated 16.02.2005.
      6.1. This Court by Order dated 19.11.2014 issued Notice only for         D
exploring the possibility of a settlement between the appellants and
Respondent No.2-Kusum Gorule (originally Respondent No.55).
       6.2. The appellants filed I.A. No. 9 / 2016 to delete the original
Respondent Nos. 2 to 54 (members of the Vaity family) from the array
of parties. Mr.Anil G. Shah-the husband and Power of Attorney holder
                                                                               E
of Appellant No.2-Nina Anil Shah appeared before the Chamber Judge
of this Court, when I.A. No. 9 / 2016 filed by the said Appellant was
allowed vide Order dated 28.11.2016 at the risk of the Appellants.
      6.3. On 27.03.2018, the appellants filed I.A. No. 48308 / 2018 to
implead Oswal Enterprises as a party to the present proceedings.
                                                                               F
      6.4. This Court by Order dated 12.12.2019 appointed Mr. Nikhil
Nayyar, learned Senior Counsel as Amicus Curiae to assist the Court
on behalf of the Appellant.
      6.5. On 17.03.2020, the appellants filed I.A. No. 73241 / 2020 to
re-implead Respondent Nos. 2 to 54 i.e. members of the Vaity family            G
[who had been deleted vide Order dated 28.11.2016] as parties to the
present Civil Appeal.
      7. We have heard the learned Amicus Curiae, Mr. Nikhil Nayyar,
Senior Advocate, Mr. Jay Savla, Senior Advocate on behalf of the
                                                                               H
132                SUPREME COURT REPORTS                        [2021] 2 S.C.R.


A     Respondents, and Mr. Anil G. Shah in-person, as the Power of Attorney
      holder of Appellant No.2.
            8. We will first deal with the 2 pending I.As.
            (i)      I.A. No. 48308 / 2018 was filed to implead Oswal Builders
                     as a party respondent to the present Civil Appeal.We find
B                    that the said I.A. deserves to be dismissed, since Oswal
                     Builders has already been impleaded as Defendant No.3 in
                     the substantive Suit No. 3162/ 2005 filed by the Appellant
                     before the Bombay High Court.
            (ii)     I.A. No. 73241 / 2020 has been filed by the appellants to
C                    re-implead Respondent Nos. 2 to 54, who were deleted
                     vide Order dated 28.11.2016 at the risk of the appellants.
                     We are of the view that the said I.A. cannot be allowed at
                     this stage. The said I.A. is accordingly dismissed.
            9. Mr. Nikhil Nayyar, learned senior counsel appearing as Amicus
D     Curiae, Mr. Anil G. Shah in-person, as the Power of Attorney Holder of
      appellant no. 2, and also learned counsel for the respondents have
      extensively made their submissions on merits. What transpires from the
      record is that both the consent decrees dated 16.02.2005 and 03.10.2005
      have been challenged at the behest of the appellants in the substantive
E     Suit No. 3162/2005 filed at their instance,which is pending adjudication
      before the Bombay High Court.
             10. The submission of the learned counsel for the appellants is
      that the appellants are not a signatory to the consent orders dated
      16.02.2005 and 03.10.2005 passed in Suit No. 1335/1988 which are
F     detrimental to the interest of the appellants, and have been challenged
      by them in an Appeal invoking Section 96 of the Code of Civil Procedure,
      1908.The High Court failed to examine the dispute raised by the appellants
      on merits, and the filing of a substantive suit by them cannot be a ground
      to reject their Appeal, particularly since there is a patent error committed
      while passing of the consent decree dated 16.02.2005 behind the back
G     of the Appellants.
            11. It was further submitted that even though the Appellants were
      impleaded in Suit No. 1335/1998 at a later stage, it shouldin no manner
      deprive their right to assail the Order dated 16.02.2005, which was passed
      behind their back, andis a nullity in the eyes of law. In the given
H
  M/S. CHITRALEKHA BUILDERS & ANR. v. G.I.C. EMPLOYEES SONAL                   133
    VIHAR CO-OP. HOUSING SOCIETY LTD. [INDU MALHOTRA, J.]


circumstances, the order dated 16.02.2005 ought to have been recalled          A
for the very reason that it was passed in their absence, to their detriment.
      12. It was further submitted that pursuant to the compromise decree
on consent terms dated 16.02.2005, aconveyance deed dated 22.07.2005
was executed alienating the suit property in favour of a third party i.e.
Oswal Enterprises, in disregard to the rights of the Appellants, and           B
possession of the suit property was parted with without affording an
opportunity of hearing to the Appellants. Consequently, their rights have
been seriously jeopardized.
      13. The Appellant appeared in person, and placed reliance on
certain judgments of this Court regarding the scope of the appeal              C
preferred under Section 96 of the Code.
       14. On the other hand, learned counsel for the Respondents, while
supporting the judgment impugned passed by the High Court submitted
that the rights of the Appellants have been protected by the High Court
under the impugned judgment, and what is being prayed for by the               D
appellants in the instant appeal is the subject matter of challenge in Suit
No. 3162/2005 filed at their instance. It was open for the Appellants to
pursue their remedy in the substantive Suit. In the given circumstances,
no error has been committed by the High Court in the impugned judgment
which calls for interference by this Court.
                                                                               E
       15. The substantive Suit No.1335/1988 was originally filed at the
instance of Kusum Gorule(i.e. Geetanjali G. Sohani)[original plaintiff no.
2 in Suit No. 1335/1988] and the Vaityfamily and the decree on the
consent terms was passed vide Order dated 16.02.2005, and the
subsequent consent order dated03.10.2005, came to be passed between
the parties, viz. GIC Employees’ SonalVihar Co-operative Housing               F
Society (original plaintiff no. 1 in Suit No. 1355/1988) and Oswal
Enterprises (Defendant No. 57 in Suit No. 1355/1988). Undisputedly,
Suit No. 1335/1988 had not been examined by the Court on merits, since
the parties to the proceedings entered into a compromise, and a consent
order came to be passed by the Court vide Order dated 16.02.2005               G
followed with Order dated 03.10.2005. Consequently, the suit was
disposed of on the consent terms arrived between the parties.
       16. The present appellants were not a party to the proceedings at
the stage when the consent order came to be passed on 16.02.2005, or
the subsequent order dated 03.10.2005 in Suit No. 1335/1988. Both the
                                                                               H
134             SUPREME COURT REPORTS                            [2021] 2 S.C.R.


A     consent orders dated 16.02.2005 and 03.10.2005 would consequently
      not have a binding effect on the present Appellants.The consent orders
      dated 16.02.2005 and 03.10.2005 challenged in the substantive Suit No.
      3162/2005 would require to be examined by the Court independently on
      its own merits in accordance with law, without being influenced by the
      observations made in the impugned judgment dated 22.07.2014.
B
              17. The Division Bench of the High Court in the impugned
      judgment, after taking note of the submissions made, has recorded a
      finding that since the Appellants were not a party to the proceedings,
      and the Order dated 16.02.2005 has been passed on the terms agreeable
      to the parties to the proceedings,it shall not be binding upon the Appellants,
C     and their rights could be examined independently in the substantive suit
      filed at their instance.The relevant paras of the judgment impugned are
      as under:-
             “13. It is an admitted position that the said Mrs. Kusum did not
             sign the consent terms either on behalf of M/s. Chitralekha
D            Builders, a partnership firm, or as a partner of the said partnership
             firm. The settlement which is recorded in terms of the decree by
             way of impugned order is between the parties to the consent terms.
             The present appellants were admittedly not parties to the consent
             terms and in fact on the date on which the impugned order was
E            passed, they were not even impleaded as parties to the suit.
             Therefore, it is obvious that the consent terms dated 16th February,
             2005, on the basis of which the impugned order dated 16th
             February, 2005 was passed, do not bind the appellants.
             14. Consequently, the consent decree passed on the basis of the
F            said consent terms dated 16th February, 2005 does not bind the
             appellants. As stated earlier, under the impugned order, the suit
             was not disposed of. The suit has been disposed of by a subsequent
             order, which is not the subject matter of challenge in the present
             Appeal. Hence, in this Appeal, an order of restoration of the Suit
             cannot be passed.
G
             15. Thus, the appellants are not affected by the impugned order in
             any manner. Therefore, it is not necessary to interfere with the
             impugned order. We, however, make it clear that we have made
             no adjudication on the rights claimed by the appellants in respect
             of the property in question as well as the right claimed by the
H
  M/S. CHITRALEKHA BUILDERS & ANR. v. G.I.C. EMPLOYEES SONAL                 135
    VIHAR CO-OP. HOUSING SOCIETY LTD. [INDU MALHOTRA, J.]


      respondents as a separate Civil Suit filed by the second appellant     A
      in relation to the same property is pending.”
      18. We are also of the considered view that since the Appellants
were not a party to the Consent Terms as is evident from the record,
when the Orders came to be passed on 16.02.2005 followed with
03.10.2005, it may not bind the Appellants. Its legal effect is open to be   B
examined in the substantive suit filed at their instance independently on
its own merits in accordance with law. We do not find any error having
been committed by the High Court, which may call for our interference.
       19. The submission of the learned Amicus Curiae for the
Appellants, and of the Appellant-in-person is that apart from the            C
substantive suit having been preferred at their instance, the Consent
Decree dated 16.02.2005, followed with 03.10.2005, which have been
challenged at their behest under Section 96 of the Code,ought to be
examined by the Division Bench of the High Court on merits, and their
substantive right of appeal filed under Section 96 of the Code could not
have been stultified merely on the premise that a substantive Suit No.       D
3162/2005 had been preferred at their instance,is pending adjudication.
The submission is of no substance since in the first instance, Suit No.
1335/1988 was disposed of by the Court on the consent terms arrived
between the parties to the proceedings vide Order dated 16.02.2005
followed by Order dated 03.10.2005. In the given circumstances, even         E
though the Appellants who were later impleaded, have a right of appeal
under Section 96 of the CPC. However, since the Appellants were not a
party to the Consent Orders, it was not open for the Court to examine
the legal effect of the Consent Orders dated 16.02.2005 and 03.10.2005
to which the Appellants were not a party. Once the substantive suit has
been filed at their instance questioning the Consent Orders dated            F
16.02.2005 followed by 03.10.2005,the same is indeed open to be
examined independently on its own merits in the pending proceedings
initiated at their instance.
       20. So far as the rights of the Appellants are concerned, the same
have been duly protected by the High Court in the impugned judgment          G
dated 22.07.2014. In furtherance thereof, we make it clear that the
observations/findings which have been recorded by the High Court in
the impugned judgment dated 22.07.2014, in no manner, prejudice the
rights of the Appellants, and the pending Suit No. 3162/2005 filed by the
Appellant may be examined by the Court independently on its own merits       H
136              SUPREME COURT REPORTS                         [2021] 2 S.C.R.


A     in accordance with law without being influenced by the observations
      made by the High Court in the impugned judgment dated 22.07.2014.
            21. Since the suit was instituted in 2005, we consider it appropriate
      to observe that the High Court may hear and disposeof Suit No. 3162/
      2005 as expeditiously as possible, preferably within a period of one year.
B           22. The Civil Appeal on the above terms stands disposed of with
      no order as to costs.
             23. Pending application(s), if any, stand disposed of.
            24. We appreciate the effort and time spent by Mr. Nikhil Nayyar,
C     learned senior counsel for rendering his able assistance to this Court.


      Devika Gujral                                              Appeal disposed of




D




E




F




G




H