VIBHA MEHTA Vs. HOTEL MARINA

JUDGEMENT

(1.) This is an appeal against an order of a learned Single Judge dismissing an application of the appellant ("the plaintiff") seeking the setting aside of a compromise decree.

(2.) The plaintiff had sued the first respondent, M/s Hotel Marina ("Marina"), a partnership firm of which she and respondents 2-9 (the other defendants) were members. The suit claimed the dissolution of the firm, a decree of rendition of accounts, and a direction to assess and realize the value of all common assets in order to pay the amount due to the plaintiff. The plaint alleged that Marina was managed by the eighth respondent, the plaintiff's father in law, and another partner, and that she had executed a power of attorney in favour of eighth respondent. Due to apprehensions regarding its misuse and the manner in which the firm was being managed, the plaintiff revoked the power of attorney on 5th February, 2001, and filed the suit for dissolution. By an order dated 14-12-2005, the learned Single Judge restrained the defendants, presently respondents 2-9, from creating any third party interest in the assets and business of the partnership. The suit valued the amount payable to the plaintiff at Rs. 2 crores.

(3.) During the course of proceedings, the defendants offered a sum of Rs. 2 crores for amicable settlement of the suit. This was rejected by the plaintiff, as recorded in the order dated 27th February, 2006. Later, however, a common application under Order XXIII, Rule 3, Code of Civil Procedure ("CPC") for a compromise was filed by the parties on 3rd March, 2006. The compromise recorded as follows: