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Umedraj Jain v. V. Sudarsanan

Civil Appeal · 2025 INSC 827Decided 14 Jul 2025
Civil Appeal No. 7742 of 2025 (arising out of SLP(C) No. 10797 of 2019)
Justice Pamidighantam Sri Narasimha · Justice Joymalya Bagchi

Background

The respondent had loaned money to the original defendants under a mortgage of title deeds and sued for recovery. While the suit was pending, the appellant purchased the mortgaged property from the original defendants. The suit was decreed, and after prolonged execution proceedings the appellant paid a total of about Rs. 1.15 crore, following which proclamation proceedings against him were closed. The respondent later claimed a further Rs. 19.24 lakh was still owed, and both the Single Judge and Division Bench of the Madras High Court agreed and directed the appellant to pay this additional sum, which he then challenged before the Supreme Court.

Decision Breakdown

After the appeal remained pending for years and repeated attempts at settlement, the Supreme Court, considering the long-drawn litigation and heavy costs already incurred by both sides, modified the High Court's order. Instead of the full Rs. 19,54,946 demanded, the Court directed the appellant to pay Rs. 15 lakh within two months as full and final settlement of all dues under the decree. The Court expressly confined this order to the facts of the case and stated it should not be treated as a precedent.

Lesson Learnt

Courts can and do encourage practical settlements in long-pending execution disputes rather than continuing to litigate every rupee, even where a strict legal entitlement to a larger sum might otherwise exist, but such compromises are fact-specific and are not meant to set a general rule for other cases.

Official source (sci.gov.in)View Judgment (PDF)

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