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Civil ProcedureSupreme Court of India

Y. Sleebachen v. Superintending Engineer, WRO/PWD

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 7164-7166 of 2014)Decided 4 Aug 2014
Civil Appeal Nos. 7164-7166 of 2014
Justice J. Chelameswar · Justice A.K. Sikri

Background

A contractor obtained three arbitration awards over public-works contracts, which the government department challenged in court. Facing financial difficulties, he offered reductions in the principal and interest, and the government lawyer endorsed his written settlement proposals. The trial court passed consent decrees, but the department persuaded the High Court to set them aside by claiming that its lawyer lacked authority to agree.

Decision Breakdown

The Supreme Court allowed the contractor's appeals and restored the consent decrees. The government lawyer's written endorsement validly recorded the department's consent, and the department had produced no pleading or material establishing that he lacked authority. It also had neither sought correction or recall before the trial court nor taken action against the lawyer, who continued representing it. The Court held the settlement binding and awarded the contractor costs of ₹25,000 in each appeal.

Lesson Learnt

A settlement formally recorded by a court through an authorised lawyer can bind the client, including a government department. A later change of mind and an unsupported claim of missing authority did not undo this settlement.

Y. Sleebachen v. Superintending Engineer, WRO/PWD – Legal Case Shots | LegalAware