FINE SPINEERS PVT LTD Vs. GRINDLAYS BANK LTD

JUDGEMENT

(1.) By this petition the order of the executing Court dated August 6,1991 dismissing the objection petition filed by the petitioners under Section 47 read with Section 151 C.P.C. has been impugned. The facts of the case insofar as they are relevant for the disposal of this case are as under :-

(2.) THE respondent -decree holders filed civil suit No. 214 on October 6, 1977 against the petitioners for the recovery of certain amounts due from them. On 30.9.1981 a compromise was entered into between the parties and the following con - sent decree was passed in favour of the decree holders;

(3.) I have heard the learned counsel for the parties and find that the arguments of Mr. Chhibbar do not really appeal to me. The string of authorities cited by the learned counsel for the respondents squarely cover the facts of this case and out of them I deem it necessary to discuss only the judgment of the Division Bench of the Lahore High Court in Jawala Ram's case (supra). In this case (as in the case in hand) the precise point that came up for decision was as to whether in a consent decree in which the amount made payable in case of default was not more than the amount claimed in the suit was hit by Section 74 of the Act as being in the nature of a penalty. On a difference of opinion between the two Judges, the matter was referred to a third Judge who opined as under: