Unit –I: Judgment and Decree

a. Judgment: Definition, Essentials, Pronouncement, Contents, and Alteration

b. Decree: Definition, Essentials, Types, Drawing up of a decree, Contents, and Decree in particular
cases
c. Interest
d. Costs

Questtion1. Define a ‘Decree’ under the CPC and describe its essentials, types, drawing up process,
contents, and specific decrees with relevant case laws.

INTRODUCTION
A decree is one of the frequently heard terms in Civil Matters. The adjudication of a courtroom of law is
divided into decree and orders. The term “decree” has been defined in section 2(2) of the Code of Civil
Procedure, 1908. The decree is a proper expression of adjudication by way of which the courtroom
determines the rights of parties concerning the matter in controversy or dispute. It can be relating to any
or all of the matter in controversy in the match.
Decree may be suggested best in the case of a healthy, i.e., civil proceeding instituted through the
presentation of a plaint.
The decree shall encompass the rejection of a plaint in figuring out any query under Section 144, but
excludes the following:
1. Any adjudication from which an attraction lies, together with, an attraction from order.
2. Any order of dismissal for default.
The Explanation to this segment presents that a decree can either be preliminary or final or in part initial
and partly very last. Preliminary decrees are those in which the in shape is not completely disposed of and
further proceedings may take place. The final decree is while the Court absolutely disposes of the suit.
This article describes all the aspects of a decree i.e, its major elements, types, procedure to pass decree
and various rules related to decree with case laws.

ESSENTIALS ELEMENTS OF A DECREE

The decree is a decision of the court. For any decision of the court to be a decree, the following essentials
are required:
1. There must be an adjudication.
2. The adjudication must be done in a suit.
3. The adjudication must be determining the rights of the parties concerning all or any of the matter at issue.
4. Such determination must be conclusive in nature.
5. There must be a formal expression of such adjudication

1. Adjudication
The most essential feature of a decree is that there must be an adjudication, i.e., a proper decision of the
Judge on the matter at issue. If there’s no judicial determination, there’s no decree. And such decision
must be gone by the Court. Therefore, an order gone by a politician who isn’t a court can’t be termed as
decree. In Madan Naik v Hansubala Devi, the Supreme Court held that if the matter isn’t judicially
determined, it’s not a decree.

2. Suit
It may be defined as a civil proceeding which is instituted within the Court of Law by the presentation of
a plaint. Thus, if there’s no lawsuit, there’s no decree. There are some applications which are being
treated as suit, such as, proceedings under, the Indian Succession Act, the Hindu Marriage Act, the Land
Acquisition Act, the Arbitration Act, etc. Therefore, decisions given for these matters are considered as
 decrees within the meaning of Section 2(2) of Civil Procedure Code. Additionally to the present,
decisions held by the tribunals are the decrees gone by the tribunal and not the Court decree.

3. Rights of the parties

The adjudication must determine the rights of the parties altogether or any of the matters at issue. If the
Court passes an order on procedural ground, such order can’t be termed as a decree, such as, an order
dismissing the suit for non-appearance of the parties, or an order refusing to grant leave to sue as a paper,
etc.
The term parties mean parties to the suit, i.e., the plaintiff (the one that has instituted the suit) and
therefore the defendant (against whom the suit has been filed). In Kanji Hirjibhai Gondalia vs Jivaraj
Dharamshi, the Court held that the term parties means the parties to the suit, i.e., the plaintiff and
therefore the defendant. Just in case the Court passes an order upon an application of a stranger or a
3rd party during a suit, such order won’t be considered as a decree.

4. Determination must be conclusive

The judicial determination held by the Court of Law must be conclusive and final concerning the rights of
the parties to the suit. The provisional decisions or the interlocutory orders can’t be termed as a decree
as they’re not the ultimate decision of the Court. Therefore, orders gone by the Court on certain issues
and remitting other issues to the court isn’t a decree because it doesn’t determine the rights of the parties
conclusively.

5. Formal Expression
There must be a proper expression of the adjudication. The Court must express its decision formally in
accordance with the provisions of law.

CLASSIFICATION OF DECREE/ TYPES OF DECREE

1. Preliminary Decree (Section 2(2)): A preliminary decree is one that decides the rights of the parties
involved in a suit but does not completely dispose of the suit. It lays down the groundwork for further
proceedings and serves as a preparatory stage for the final resolution.Example: In a partition suit, the
court may determine the shares of parties first (preliminary decree) and later divide the property (final
decree). A preliminary decree may declare the rights of creditors and beneficiaries before directing the
final settlement of accounts.

2. Final Decree (Section 2(2)): A final decree conclusively resolves all matters in controversy between the
parties and disposes of the suit entirely. It is the last step in the judicial process and provides enforceable
relief to the successful party. It disposes of the entire suit without leaving any issues unresolved. It is
executable and enforceable by the decree holder. It may follow a preliminary decree or directly resolve all
issues without a preceding preliminary decree. Example: The court’s final division of property based on
the shares determined in the preliminary decree in a partition suit.

3. Partly Preliminary and Partly Final Decree : A partly preliminary and partly final decree is a hybrid
decree where part of the suit is conclusively decided (final), while other issues are left open for further
adjudication (preliminary). The purpose of this type of decree is to address complex cases where certain
aspects can be finalized while others require additional proceedings.It contains elements of both
preliminary and final decrees. It is passed in suits involving multiple issues or claims. It allows partial
execution of the decree while leaving other matters for determination. EXAMPLE: In mortgage suits, the
court may decree the amount due as preliminary and order the sale of the property as final.
4. Deemed Decree : Decrees which doesn’t fulfil the prerequisite of Section 2(2) can’t be termed as a
decree under this Code. However, there are certain orders which are considered as deemed decrees under
Civil Procedure Code, such as, adjudication under order 21 Rule 58, Rule 98 and Rule 100 are deemed
decrees. Similarly, rejection of plaint and determination of question under Section 144 (Restitution) may
be a deemed decree.

CONTENTS OF A DECREE
The decree shall follow the judgment, agree with it and bear:
a. The number of the suit
b. The names and description of the parties and their registered addresses
c. The particulars of their claims
d. The relief granted
e. the amount of costs incurred within the suit, and by whom or out of what property and in what portions
are they paid
f. The date on which the judgment was pronounced
g. The signature of the judge

DRAWING UP OF A DECREE
Order XX Rule 6A provides that the decree shall be drawn up within 15 days from the date judgment is
pronounced.
Order XX Rule 7 provides that the decree shall bear the date on which the judgment was pronounce

DECREES IN SPECIAL CASES/ DECREE IN PARTICULAR CASES

Order 20 Rule 9: Decree for recovery of immovable property: In suit for recovery of immovable
property, the decree shall contain an outline of such property sufficient to spot it, e.g. boundaries, survey
numbers etc.

Order 20 Rule 10: Decree for delivery of movable property: A decree for delivery of movable
property must state the amount of money to be paid as an alternate if the delivery of isn’t made.

Order 20 Rule 11: Decree may direct payment by instalments: Order, after decree, for payment by
instalments. During a decree for payment of money, the court may order that the payment of decretal
amount shall be postponed or shall be made by installments with or without interest.

Order 20 Rule 12: Decree for possession and mesne profits: During a suit for recovery of possession
of immovable property, the court may pass a decree:
1. For possession of property
2. for past rent or mesne profits or
3. Direct a search to such rent or mesne profits
4. direct an inquiry to such future rents or mesne profits
5. Final decree in respect of rent or mesne profits in accordance with the results of such inquiry.

Order 20 Rule 12A: Decree for specific performance of contract for the sale or lease of immovable
property: Where a decree for the precise performance of contract for the sale or lease of immovable
property orders that the acquisition money or other sum be paid by the purchaser or lessee, it shall
specify the amount within which the payment shall be made.

Order 20 Rule 13 : Decree in administration suit, Where a suit is for an account of any property and
for its due administration under the decree of the Court, the Court shall, before passing the
ultimate decree, pass a preliminary decree ordering such accounts and inquiries to be taken and made, and
giving such other directions because it thinks fit. Within the administration by the Court of the property of
any dead person, if such property proves to be insufficient for the payment fully of his debts and
liabilities, an equivalent rules shall be observed on the respective rights of secured and unsecured
creditors and on debts and liabilities provable, and on the valuation of annuities and future and contingent
liabilities respectively, as could also be effective for the nonce, within the local limits of the Court during
which the administration suit, is pending with reference to the estates of persons adjudged or declared
insolvent, and every one persons who in any such case would be entitled to be paid out of such property,
may are available under the preliminary decree, and make such claims against an
equivalent as they’ll respectively be entitled to by virtue of this Code.

Order 20 Rule 14 : Decree in pre-emption suit, Where the Court decrees a claim to pre-emption in
respect of a specific sale of property and therefore the purchase-money has not been paid into Court, the
decree shall:
1. Specify each day on or before which the purchase-money shall be so paid, and
2. Direct that on payment into Court of such purchase-money, alongside the prices (if any) decrees
against the plaintiff, on or before the day mentioned in clause (a), the defendant shall deliver possession
of the property to the plaintiff, whose title thereto shall be deemed to possess accused from the date of
such payment, but that, if the purchase-money and therefore the costs (if any) aren’t so paid, the suit shall
be dismissed with costs. Where the Court has adjudicated upon rival claims to pre-emption, the decree
shall direct and in thus far because the claims decreed are equal in degree, that the claim of every pre-
emptor complying with the provisions of sub-rule (1) shall become in respect of a proportionate share of
the property including any proportionate share in respect of which the claim of any pre-emptor failing
to suits the said provisions would except for such default, have taken effect; and (b) if and in thus
far because the claims decreed are different in degree, that the claim of the inferior pre-emption shall
not become unless and until the superior preemptor has did not suits the said provisions.

Order 20 Rule 15: Decree in suit for dissolution of partnership, Where a suit is for the dissolution of
partnership, or the taking of partnership accounts, the Court, before passing a final decree, may pass a
preliminary decree declaring the proportionate shares of the parties, fixing the day on which the
partnership shall stand dissolved or be deemed to possess been dissolved, and directing such accounts to
be taken, and other acts to be done.

Order 20 Rule 16: Decree in suit for account between principal and agent during a suit for an account
of pecuniary transactions between a principal and an agent, and in the other suit not herein before
provided for, where it’s necessary, so as to determine the quantity of cash thanks to or from any party,
that an account should be taken, the Court shall, before passing its final decree, pass preliminary decree
directing such accounts to be taken. The court can give special directions regarding mode of taking
accounts.

Conclusion
The term “decree” holds immense significance as it represents the final adjudication of a dispute by a
civil court. Whether preliminary or final, the decree’s role in the judicial process underscores the
importance of procedural law in achieving substantive justice.

Question 2. Define ‘Judgment’ under the Code of Civil Procedure, 1908. Explain its essential
elements and discuss the rules regarding its pronouncement, contents, and alteration with relevant
case laws.
 Definition of Judgement in CPC
A judgement is a decision made by a court, as explained in Section 2(9) of the Code of Civil Procedure,
1908. It includes details about the case, such as the facts, issues, evidence presented by both parties and
the court’s findings on the issues based on the evidence and arguments. Every judgement in CPC must
include a summary of the case’s main points, the court’s decisions on each issue, the legal reasoning
(ratio decidendi) and the relief granted by the court.
Courts announce judgements regularly, resolving various cases. These judgements are crucial in our legal
system because they set examples for future cases. When a judge delivers a judgement, they always
provide the reasons behind their decision.

Essentials of Judgment
 There should be a statement for the grounds of the decision.
 Every judgment other than that of a Court of Small Causes should contain:
o A concise statement of the case.
o The points for determination.
o The decision thereon.
o The reasons for such a decision.
 A judgment of a Court of Small Causes may contain:
o The points for determination.
o The decision thereon.
 The judgment need not be a decision on all the issues in a case.
 An order deciding a preliminary issue in a case is a judgment.

PRONOUNCEMENT OF JUDGEMENT: GENERAL PROVISIONS

Order XX, Rule 1 of the CPC mandates that the court must pronounce judgement in an open court after
the case has been heard. This provision ensures that the decision is made public and the parties involved
have access to the reasoning behind the ruling.
Time Frame for Pronouncement
 General Courts: The judgement should be delivered immediately after the conclusion of arguments or as
soon as practicable. If there is a delay, the judgement must be pronounced within 30 days from the
completion of the hearing. However, in exceptional circumstances, the period can be extended up to 60
days, provided due notice is given to the parties.
 Commercial Courts: Recognising the importance of expediency in commercial disputes, the law
mandates that judgements in commercial courts must be pronounced within 90 days from the conclusion
of arguments.
These provisions aim to prevent unnecessary delays in the judicial process and ensure that justice is
dispensed without unreasonable waiting periods.
Mode of Pronouncement
The pronouncement of judgement can take different forms:
1. Oral Pronouncement: The judge reads out the judgement in open court, stating the key findings and the
final decision.
2. Written Judgement: If the judgement is in writing, it is sufficient for the judge to read out the findings
on each issue and the final order.
3. Dictation to Shorthand Writer: If the judge is specially empowered, he or she may dictate the
judgement to a shorthand writer, which is then transcribed, corrected, signed, and dated.
Regardless of the mode, the judgement must be made available to the parties as per the prescribed rules.
 Copy of the Judgement under CPC
After a judgement is announced under the Code of Civil Procedure copies of the judgement are promptly
provided to the involved parties. The party requesting a copy needs to pay the specified costs, as outlined
in Order XX Rule 6-B of the CPC.
The charges are determined by the rules and orders set by the High Court. This ensures that parties can
obtain copies of the judgement by following the procedures and covering the associated costs as
stipulated by the court.
CONTENTS OF THE JUDGEMENT
As per Rule 4 of Order XX in the Code of Civil Procedure, 1908, judgements from Small Causes Courts
are considered sufficient if they include the points to be determined and the corresponding decisions. For
judgements from other courts, the following elements should be included:
 Summary of the pleadings: A brief statement outlining the case.
 Issues: Clearly defined points that are subject to determination.
 Findings on each issue: The court’s conclusions regarding each point in question.
 Ratio decidendi: The reasons behind the court’s decision.
 The remedy: Details about the relief granted by the court.
These components of judgement in CPC ensure a comprehensive and clear presentation of the court’s
decision-making process and the outcome of the case.

Judgement to be Signed
According to the law, a judgement in CPC must be dated and signed by the Judge in open court at the
time of pronouncing it. Once signed, it cannot be altered or added to, except as allowed by Section 152 or
on review.
In the case of Balgees Begum v. Govt. of A. P. (AIR 1994 A.P. 316), the Andhra Pradesh High Court
clarified that Rules 1, 2 and 3 of Order XX suggest that a judgement is considered valid, effective and
operative once it is dictated and pronounced by the judge in open court, even if the judge passes away
before signing it. This underscores the significance of the pronouncement itself in establishing the validity
of a judgement in CPC.

Judgement of Small Cause Courts

For Small Causes Courts, a judgement under CPC needs only to include the points for determination and
the decision on those points.

Judgement Contents for Other Courts (Rule 4):

For courts other than Small Causes Courts, the judgement in CPC must include:
 A concise statement of the case,
 The points for determination,
 The decision on those points,
 The reasons for the decision,
 The relief granted.
In the case of Alok Kumar v. S.N. Sharma (AIR 1968 SC 453): Judges should use dignified and
restrained language, especially when criticising other judges or subordinate courts. Making remarks
against the character of someone not involved in the proceedings is not advisable.
In A. M. Mathur v. Pramod Kumar (AIR 1990 SC 1737): No disparaging or defamatory remarks
should be made against any party or person.
In Atar Singh v. District Judge Jhansi (AIR 1994 All 295): Even an ex parte decree must meet the
requirements of a judgement as outlined in Order XX, Rule 4. An ex parte decree without reasons is not
considered a judgement under in CPC.

Court’s Decision on Each Issue (Order XX, Rule 5):

In suits with framed issues, the court must state its decision, along with reasons, for each separate issue
unless the finding on one or more issues is enough to decide the entire suit.
ALTERATION OF A JUDGEMENT IN CPC
If a judgement has been dated and signed by the judge, changes or corrections can only be made under
certain circumstances:
 Arithmetical or Clerical Errors:
Changes can be made if there are mistakes in calculations (arithmetical errors) or errors made by clerks
(clerical errors). These are errors in numbers, like adding up figures or other basic mathematical errors.
 Errors Due to Accidental Slips or Omissions:
Amendments are allowed for errors resulting from accidental slips or omissions. These occur when
something crucial is unintentionally overlooked. This provision is outlined in Section 152. Additionally,
the judgement in CPC can be reviewed under Section 114 if necessary.
In essence, alterations to a judgement are permitted for minor mistakes in numbers or clerical work and
for accidental oversights in essential details. This is in accordance with Sections 152 and 114 of the CPC.

Conclusion
A judgement in CPC is the official decision or conclusion reached by a court after a case has been heard.
As outlined in the CPC, a judgement typically includes key elements such as a concise statement of the
case, the issues to be determined, the court’s findings on those issues, the reasons for the decision (ratio
decidendi) and the relief granted.

Question 3. What are the legal provisions governing the award of interest in civil suits under the
Code of Civil Procedure, 1908?
S 34 of CPC makes provision for payment of interest in cases where the decree is for payment of money.
In any suit for money,the interest which may be awarded to a plaintiff may be divided into
following three heads:
a). Interest prior to institution of suit: This is actually a matter of substantive law and not procedural.If
parties have stipulated the rate of such interest,the court will normally allow that rate.If that rate is
excessive,it will be scaled down by court under money lender'sAct or usurious loans Act or S 74 of Indian
contract Act.

If however, there is no such stipulation between the parties,plaintiff will not be entitled to any interest for
this period,unless he can prove a mercantile usage or an implied agreement to that effect or unless he has
a statutory right to interest as for instance,under negotiable instrument Act or interest Act.
b) Interest from the date of suit till date of decree:- Rate of interest from date of suit till date of decree
is in discretion of court.In the exercise of this discretion,court normally award interest at the rate agreed
between the parties unless it is inequitable to do so.
c) Interest from date of decree till date of payment:
Court has a discretion as regards the rate of interest from date of decree till date of payment,and it may
award such interest at such rate as it deems reasonable not exceeding six percent interest per
annum,except in case of commercial transactions.
For the purposes of this section, a transaction is a commercial transaction,if it is connected with
industry,Trade or business of the party incurring the liability.
Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial
transaction,rate of such further interest may exceed six percent per annum,but shall not exceed contractual
rate of interest or where there is no contractual rate,the rate at which moneys are lent or advanced by
nationalised banks in relation to commercial transactions.
2) Where such a decree is silent with respect to payment of further interest on such principal sum from the
date of decree to the date of payment or other earlier date, the court shall be deemed to have refused such
interest,and a separate suit therefore shall not lie.
Question 4. Explain the general principles governing the imposition of costs in civil litigation
General Costs under Civil Procedure Code: Section 35 of Civil Procedure Code
Section 35 of the CPC deals with general costs, which are awarded to litigants to cover the expenses
incurred during litigation. The primary objective of awarding costs under this section is to ensure that the
successful party is compensated for the legal expenses they have borne.
Principles Governing General Costs Civil Procedure Code
1. Discretion of the Court: The award of general costs is at the discretion of the court. However,
this discretion must be exercised judiciously, based on sound legal principles, rather than
capriciously or arbitrarily.
2. Costs Follow the Event: Typically, costs should follow the event, meaning that the successful
party is entitled to costs. This principle ensures that the winning party is not financially burdened
by the litigation. However, the court may deviate from this rule if there are valid reasons.
3. Recording Reasons: If the court decides that costs should not follow the event, it must record the
reasons for such a decision as per sub-section (2) of Section 35. This provision ensures
transparency and accountability in the awarding of costs.
Miscellaneous Costs under Civil Procedure Code: Order 20A
Order 20A of the CPC specifically addresses the power of the court to award costs for certain expenses
incurred during litigation. These expenses include:
 Giving notices
 Typing charges
 Inspection of records
 Producing witnesses
 Obtaining copies
The inclusion of miscellaneous costs under Order 20A aims to cover specific, often overlooked, expenses
that parties incur in the process of litigation. By doing so, the CPC ensures that parties are adequately
compensated for all legitimate expenses.
Compensatory Costs under Civil Procedure Code: Section 35A
Section 35A provides for compensatory costs, which serve as an exception to the general rule of costs
under Section 35. This section is designed to address situations where Section 35 does not offer sufficient
compensation, particularly in cases involving false or vexatious claims or defences.
Conditions for Awarding Compensatory Costs
For Section 35A to apply, the following conditions must be met:
1. False or Vexatious Claim/Defense: The claim or defence must be false or vexatious, brought
with malicious intent.
2. Objection by the Other Party: The other party must have raised an objection that the claim or
defence was false or vexatious, to the knowledge of the party raising it.
3. Disallowed, Withdrawn or Abandoned Claim: The claim must have been disallowed,
withdrawn or abandoned, either in whole or in part.
The maximum amount that can be awarded under Section 35A is Rs. 3,000. It is important to note that
this section applies only to suits, not to appeals or revisions. This provision empowers the court to impose
compensatory costs on parties who misuse the legal process for vexatious purposes.
Costs for Causing Delay: Section 35B
Section 35B addresses costs for causing delays during litigation. This section empowers the court to
impose costs on parties who cause unnecessary delays at any stage of the litigation process, regardless of
the ultimate outcome of the case.
Grounds for Awarding Costs for Delay
Costs for causing delay may be awarded under the following circumstances:
1. Failure to Take Required Steps: If a party fails to take a step required by or under the code on a
specified date.
2. Obtaining Adjournments: If a party obtains an adjournment for taking such a step or for
producing evidence or on any other ground.
In such cases, the court may order the party responsible for the delay to pay costs to the other party. This
provision ensures that the litigation process is not unduly prolonged and that parties act diligently and in
good faith.
Analysis and Implications of Costs under Civil Procedure Code
The provisions related to costs under the CPC are important for several reasons. Firstly, they act as a
deterrent against frivolous and vexatious litigation. By imposing financial consequences on parties who
engage in such practices, the CPC discourages misuse of the legal system. Secondly, the provisions
ensure that the successful party is not unduly burdened by the costs of litigation. This promotes fairness
and equity in the legal process.
The discretion granted to the courts in awarding costs ensures that each case is assessed on its merits.
However, the requirement for courts to record reasons for deviating from the principle that costs follow
the event adds a layer of accountability. This transparency helps maintain trust in the judicial process.
The inclusion of miscellaneous costs under Order 20A ensures that parties are compensated for all
legitimate expenses, not just the major ones. This comprehensive approach to awarding costs reflects a
nuanced understanding of the various expenses involved in litigation.
Section 35A’s provision for compensatory costs addresses a significant gap by providing a remedy in
cases where the general rule does not offer sufficient compensation. This section is particularly important
in addressing malicious litigation practices.
Finally, Section 35B’s provision for costs for causing delay underscores the importance of timely and
efficient litigation. By imposing costs on parties who cause unnecessary delays, the CPC promotes the
swift resolution of cases, benefiting both the parties involved and the judicial system as a whole.
Conclusion
The provisions related to costs under the CPC play a vital role in the Indian legal system. They ensure
that litigation is conducted fairly, that parties are compensated for their legitimate expenses and that the
legal process is not misused. By providing mechanisms to address false or vexatious claims, compensate
for specific litigation expenses and penalise delays, the CPC fosters a just and efficient legal system.