Orissa High Court Orders Trial Court to Decree Settlement in Neighbors' Easement Dispute

Mediation agreement between parties must be honored, rules High Court, setting aside lower court's refusal

In a significant ruling, the Orissa High Court has directed a trial court to decree a settlement reached through mediation in a dispute involving easementary rights between neighbors. The case, Charulata Beura v. Ranjana Pradhan, revolved around the right to use a passageway on government land, a dispute which had been amicably resolved through mediation. 

The plaintiffs, Charulata Beura and another, had filed a suit seeking various reliefs including the right to use the 'A' schedule property as a passage and injunctions against the defendants, Ranjana Pradhan and others, to prevent obstruction. During the pendency of the suit, both parties agreed to mediation, resulting in a settlement where both parties acknowledged no claim over the government land and agreed not to obstruct each other's use of the passage.

Despite the successful mediation and the mediator's report being submitted to the trial court, the court accepted the report but declined to pass a decree. The trial court's rationale was that a decree for declaration could not be based solely on compromise without evidential support. Instead, it suggested the plaintiffs resort to other legal provisions if they wished to conclude the litigation.

The petitioners challenged this decision in the Orissa High Court, arguing that the trial court's refusal was contradictory to Section 89 of the Civil Procedure Code (CPC), which mandates the court to pass a decree in line with a settlement achieved through mediation. The High Court, presided over by Justice Sashikanta Mishra, agreed with the petitioners. Citing the Supreme Court's decision in Afcons Infrastructure Limited v. Cherian Varkey Construction Company, the High Court noted that disputes suitable for mediation, such as those involving easementary rights, should be resolved through alternative dispute resolution processes.

The High Court found that the trial court had misapplied the law by not decreeing the settlement. Justice Mishra emphasized that once a mediation settlement is reported, the court is obliged to pass a decree in accordance with it, unless specific exceptions apply. The High Court set aside the trial court's order and directed it to decree the settlement as per the mediator's report, thereby endorsing the mediation process as a viable means of dispute resolution.

Bottom Line:

Mediation Settlement - Trial Court obligated to pass a decree in accordance with the settlement arrived at through mediation, subject to conditions under Rule 25 of Civil Procedure Mediation Rules, 2007.

Statutory provision(s): Civil Procedure Code, 1908 Section 89, Order X Rule 1-A, Civil Procedure Mediation Rules, 2007 Rule 25

Charulata Beura v. Ranjana Pradhan, (Orissa) : Law Finder Doc Id # 2798079