Order 20, Rule 12 CPC | Civil Law for Judiciary Exams PDF Download

Order XX – Judgment and Decree

Rule 1: Judgment when pronounced

• After the case is heard, the Court will deliver the judgment in an open Court, either immediately or shortly after. If the judgment is to be given on a later date, the Court will schedule that day and inform the parties or their representatives. Efforts will be made to pronounce the judgment within thirty days of concluding the case. However, in exceptional circumstances, the Court may extend this period up to sixty days.
• For a written judgment, the Court only needs to read out the findings on each issue and the final order, without reading out the entire judgment.

Rule 2: Power to Pronounce Judgment Written by Judge's Predecessor

• A judge is required to pronounce a judgment that was written by their predecessor but not previously announced.

Rule 3: Judgment to be Signed

When delivering a judgment, the judge must date and sign it in open court. Once signed, the judgment should not be altered or added to, except as allowed by specific provisions like Section 152 or on review.

Rule 4: Judgments of Small Cause Courts

• In the case of Small Cause Courts, judgments do not need to be elaborate. They should only include the key points for consideration and the resulting decision.
• Judgments of Other Courts: For judgments in other courts, they must include a brief summary of the case, the points that are in question, the decision made, and the rationale behind that decision.

Rule 5: Court to state its decision on each issue

• Courts are required to provide their decisions on each issue separately in cases where issues have been framed.
• The Court must explain its findings on each issue along with the reasons, unless the decision on one or more issues is adequate to resolve the entire case.

Rule 5-A: Court to inform parties about appeal options

• When parties are not represented by pleaders, the Court must inform them about the appropriate Court for appeal and the time limit for filing the appeal.
• This information should be provided to the parties present in Court during the pronouncement of judgment. It must also be recorded officially.

Rule 6: Contents of decree

• The decree should align with the judgment and include details like the suit number, parties' names and addresses, claim specifics, and the granted relief.
• Additionally, the decree should mention the costs incurred during the suit, who is responsible for payment, and the method of payment.
• Costs Set-Off: The Court has the authority to direct that the costs one party owes to the other can be balanced against any sum acknowledged or found to be owed from the former to the latter.

Rule 6-A: Preparation of Decree

• Efforts must be made to ensure that the decree is prepared promptly, ideally within fifteen days from the pronouncement of the judgment.
• An appeal can be initiated against the decree without submitting a copy initially. The copy provided by the Court to the party will be considered the decree for legal purposes. However, once the decree is officially drafted, the judgment will lose its decree status for execution or any other intent.

Rule 6-B: Copies of Judgments

• Following the pronouncement of the judgment, copies of it should promptly be provided to the concerned parties for the purpose of filing an appeal, upon payment of specified charges as determined by the High Court.

Rule 7: Date of Decree

• The decree is dated on the day the judgment is announced. Once the Judge confirms that the decree aligns with the judgment, they will sign the decree.

Rule 8:Procedure when Judge Leaves Office before Signing Decree

When a Judge leaves office after giving a judgment but before signing the decree:

• A decree based on the judgment can be signed by their successor.
• If the Court no longer exists, the decree can be signed by a Judge of a higher Court.

Rule 9: Decree Involving Immovable Property

When the lawsuit concerns immovable property:

• The decree must include a detailed description of the property for identification.
• If the property can be identified by boundaries or survey records, these details must be specified in the decree.

Rule 10: Decree for Delivery of Movable Property

For cases involving movable property and a decree for delivery:

• The decree should mention the amount of money to be paid if delivery of the property is not possible.

Rule 11: Decree Allowing Payment by Instalments

When a decree involves payment of money, the Court may:

• Decide to postpone payment or allow instalments for valid reasons.
• This decision can be made even if it contradicts the original payment terms of the contract.
• Order for Payment by Instalments after Decree: Following the issuance of a decree, the Court has the authority to, upon the judgment-debtor's request and the decree-holder's agreement, decide that the decreed amount can be delayed or paid in installments. This arrangement can include specific terms regarding interest payments, property attachment, security provisions, or any other conditions deemed appropriate by the Court.

Rule 12: Decree for Possession and Mesne Profits

When a lawsuit involves the recovery of immovable property along with claims for rent or mesne profits, the Court can issue a decree that encompasses:

• Property Possession: Granting possession of the property to the concerned party.
• Rent Recovery: Ordering payment of accumulated rents from the time before the lawsuit initiation or initiating an inquiry into such rent amounts.
• Mesne Profits: Directing payment of mesne profits or initiating an inquiry into such profits.
• Rent or Mesne Profits Inquiry: Directing an inquiry into rent or mesne profits from the lawsuit initiation until:
  • The decree-holder gains possession.
  • The judgment-debtor vacates with court-notified notice to the decree-holder.
  • Three years elapse from the decree date, whichever occurs first.

Rule 12 A: Decree for Rent or Mesne Profits

When an inquiry is made under specific clauses, a final decree concerning rent or mesne profits is issued based on the inquiry results.
Decree for Specific Performance of Contract

• When a decree demands specific performance of a contract for the sale or lease of immovable property, it specifies a timeframe for the purchaser or lessee to make the required payment.

Rule 13: Decree in Administration Suit

• For a suit involving property accounts and administration under the court's decree, a preliminary decree is passed first, directing necessary accounts and inquiries, along with other appropriate instructions.
• In cases of property administration of a deceased individual where the assets are inadequate to cover debts and liabilities, rules similar to those for insolvent estates are followed. This includes the treatment of secured and unsecured creditors, provable debts and liabilities, valuation of annuities, and future and contingent liabilities.
• Claimants entitled to receive payment from the property can present their claims under the preliminary decree as per the provisions of the law.

Rule 14: Decree in Pre-emption Suit

• When a court grants a claim to pre-emption regarding a specific property sale and the buyer hasn't paid the purchase amount to the court:
• a. The decree must specify a deadline for the payment of the purchase amount.
• b. It should instruct that upon the payment of the purchase money along with any decreed costs by the plaintiff before the deadline, the defendant must hand over possession of the property. The plaintiff's ownership is considered to have started from the payment date. If the payment isn't made, the case will be dismissed with costs.

Adjudication of Rival Pre-emption Claims

• When the court has to decide between competing pre-emption claims:
• a. If the claims are of equal priority, each claimant meeting the payment deadline will get a proportionate share of the property, including the share that would have gone to defaulting claimants if they had complied.
• b. If the claims are of different priority, the lower-priority claim will only be considered if the higher-priority claimant fails to comply with the payment deadline.

Rule 15: Decree in Suit for Dissolution of Partnership

When a lawsuit involves the dissolution of a partnership or the settlement of partnership accounts, the court can issue a preliminary decree before the final decree. This preliminary decree will:

• Declare the proportional shares of the parties involved.
• Specify the date on which the partnership will be dissolved or considered dissolved.
• Direct the necessary accounts to be prepared and other actions to be taken as deemed appropriate by the court.

Rule 16: Decree in Suit for Account Between Principal and Agent

In cases involving pecuniary transactions between a principal and an agent, or in any other relevant suit requiring an account to determine financial obligations, the court will:

• Issue a preliminary decree before the final one to direct the preparation of necessary accounts.
• Ensure that the accounts are meticulously reviewed and prepared as deemed necessary by the court.

Rule 17: Special Directions Regarding Accounts

When it comes to handling accounts, the court may provide specific directives either through the decree or subsequent orders:

• Specify the manner in which the accounts should be prepared and verified.
• Allow the books of account containing the relevant information to be considered as prima facie evidence.
• Grant the involved parties the right to raise objections if they disagree with the accounts.

Rule 18: Decree in suit for partition of property or separate possession of a share therein

When the Court issues a decree for property partition or separate possession of a share:

• If the decree pertains to an estate paying revenue to the Government:
  • The decree must define the rights of all involved parties in the property.
  • The Collector or a gazetted subordinate deputed by the Collector will carry out the partition or separation as per the decree and Section 54.
• If the decree concerns other immovable or movable property:
  • If the partition or separation requires further investigation, the Court may issue a preliminary decree.
  • The preliminary decree will establish the rights of the parties involved and provide necessary directions.

Rule 19: Decree when set-off or counter-claim is allowed

• In cases where the defendant is granted a set-off or counter-claim against the plaintiff's claim:
  • The decree will specify the amounts owed to both parties.
  • It will enforce the recovery of any sum due to either party.
• Appeal from decree relating to set-off or counter-claim:
  • Any decree issued in a lawsuit where a set-off or counter-claim is requested follows the same appeal procedures as it would without these claims.

Rule 20: Certified copies of judgment and decree to be provided

• Certified copies of the judgment and decree must be given to the involved parties upon request to the Court, and they are responsible for the associated costs.

Important Case Laws

1. Basis for delivering judgment in court cases

• An example illustrating this principle is the case of Om Prakash v. Kimtu, (2005) 13 SCC 389, where it was emphasized that decisions in cases cannot solely rely on judgments from other cases that are not binding on the parties involved.
• The High Court's role is crucial in assessing all materials on record to ensure the conclusions reached by lower courts are legally sound. Failure to do so may result in errors, particularly if additional substantial legal questions are not addressed as required by the law.

2. Decree Drafting in Legal Cases

Decree Drafting Process:

• The decree in a legal case must be prepared after the judgment.
• It needs to align with the judgment and include details of the claim.
• The decree specifies the relief granted and outlines the costs incurred during the suit.
• Rules 9 to 19 of Order XX provide guidance on the contents of decrees for specific types of suits.

Alignment of Decree with Judgment:

• It is mandatory that the decree reflects the judgment.
• The judge must clearly indicate the relief granted to each party to facilitate accurate decree drafting.
• This ensures that the decree is in harmony with the judgment and explicitly states the relief provided.

3. Discretionary Power of Court in 'Mesne Profits'

Court's Discretion in Awarding 'Mesne Profits':

• The court holds discretionary power when deciding on 'mesne profits' in future cases.
• These profits are determined based on the circumstances of each case and the court's assessment.
• It allows the court flexibility to make fair and just decisions regarding 'mesne profits' as necessary.

Gopalakrishna Pillai v. Meenakshi Ayal, AIR 1967 SC 155: In cases falling under Order 20 Rule 12, a court holds the discretionary power to issue a decree for investigating future mesne profits. Even if not explicitly requested in the plaint, the court can provide this relief.