Class Notes Decree

DECREE Section 2(2)
The adjudication of a court of law is divided into two parts:
A Decree
B) Orders.
Meaning of Decree:
In a civil suit several facts might be alleged and the court may be required to rule
on several claims. In simple terms, a decree is the ruling of the court regarding the
claims of the parties of the suit. For example, in a suit between A and B, A may
claim that a particular property P belongs A. After hearing all the arguments, the
court will rule in the favor of either A or B. The final decision of the court
regarding this claim i.e. whether the property belongs to A or B, is a decree.
DEFINITION OF DECREE: SEC-2(2);
"decree" means the formal expression of an adjudication which, so far as regards

the Court expressing it, conclusively determines the rights of the parties with
regard to all or any of the matters in controversy in the suit and may be either
preliminary or final. It shall be deemed to include the rejection of a plaint and the
determination of any question within section 144, but shall not include-
(a) any adjudication from which an appeal lies as an appeal from an order, or
(b) any order of dismissal for default.
Explanation .-A decree is preliminary when further proceedings have to be taken

before the suit can be completely disposed of. It is final when such adjudication
completely disposes of the suit. It may be partly preliminary and partly final;
Breakdown of the definition:
Means the formal expression of an adjudication which,
So far as regards the Court expressing it,
Conclusively determines the rights of the parties,
With regards to all or any of the matters in controversy in the suit,
And may be either preliminary or final.
From the definition we can see the following essential elements of a decree –
1. There must be an adjudication - The most essential feature of a decree is

that there must be an adjudication, i.e., a formal decision of the Judge on
the matter in dispute. If there is no judicial determination, there is no
decree. And such decision must be passed by the Court. Therefore, an
order passed by an officer who is not a court cannot be termed as a decree.
In Madan Naik v Hansubala Devi AIR 1983, the Supreme Court held that if the
matter is not judicially determined, it is not a decree.
2. There must be a suit - Decree can only be given in relation to a suit. Although
CPC does not define what suit means.
It may be defined as a civil proceeding which is instituted in the Court of Law by
the presentation of a plaint. Thus, if there is no civil suit, there is no decree.
However, there are certain 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.
in Hansraj vs Dehradun Mussoorie Tramways Co. Ltd. AIR 1933, the Privy
Council defined the term suit as "a civil proceeding instituted by the presentation
of a plaint".
3. Rights of the parties - The adjudication must be about any or all of the matters
in controversy in the suit. If the Court passes an order on procedural ground, such
order cannot be termed as a decree, such as, an order dismissing the suit for non-
appearance of the parties.
4. Conclusive Determination - The determination of the right must be conclusive.

This means that the court will not entertain any argument to change the decision.
I.e. as far as the court is concerned, the matter in issue stands resolved. For
example, an order striking out defense of a tenant under a relevant Rent Act, or
an order refusing an adjournment is not a decree as they do not determine the
right of a party conclusively. On the other hand, out of several properties in issue
in a suit, the court may make a conclusive determination about the ownership of
a particular property. Such a conclusive determination would be a decree even
though it does not dispose off the suit completely.
5. Formal expression - To be a decree, the court must formally express its

decision in the manner provided by law. A mere comment of the judge cannot be
a decree.
Examples of decisions which are Decrees - Dismissal of appeal as time barred,

Dismissal or a suit or appeal for want of evidence or proof, Order holding appeal
to be not maintainable.
Examples of decisions which are not Decrees - Dismissal of appeal for default,
order of remand, order granting interim relief.
What is Deemed decree
An adjudication which does not formally fall under the definition of decree stated
under section 2(2) of the Code of Civil Procedure but due to a legal fiction, they
are deemed to be decrees are considered as deemed decrees.
Rejection of plaint and determination of the issue of restitution of decree are

deemed decree. Also, an adjudication under order 21 Rule 58, Rule 98 and Rule
100 are also deemed decrees.
Types of Decree
The Code of Civil Procedure recognises the following three types of decrees.
1. Preliminary Decree
2. Final decree
3. A partly preliminary and partly final decree
Preliminary Decree
A decree is stated as a preliminary decree when the rights of parties regarding all
or any of the matter in dispute are determined in the adjudication but it does not
dispose of the suit completely. The preliminary decree is only a prior stage
A preliminary decree is passed by the courts mainly when the court has to
adjudicate upon the rights of the parties and then, it has put the matter on hold
unless the final decree of that suit is passed
As held in the case of Mool Chand v. Director, Consolidation, a preliminary

decree is only a stage to work out the rights of parties until the matter is finally
decided by the Court and adjudicated by a final decree
Final Decree
The final decree is a decree which disposes of a suit completely and settles all the
matter in dispute between the parties. The final decree does not leave any matter
to be decided further.
It is considered as a final decree in the following ways.
1. When no appeal is filed against the decree within a prescribed time

period.
2. Matter in the decree has been decided by the highest court.
3. When the decree passed by the court disposes of the suit completely.
Partly preliminary and partly final decree
A decree passed under the Code of Civil Procedure may be partly preliminary and
partly final. This happens some part of the decree is preliminary decree while the
rest is a final decree.
Illustrations
If there is a suit of possession of an immovable property along with the issue of

mesne profit, and the court is obliged.
1. Passes a decree deciding the possession of the property.

2. Directs for an enquiry of mesne profit.
The first part deciding the possession of the property is final while the part
regarding the mesne profit is preliminary.
Decree Holder
Section 2 (3) of the code defines Decree Holder as follows:
‘Decree Holder’, means any person in whose favour a decree has been passed or an
order capable of execution has been made.
General Explanation of Decree holder
From the definition, it is clearly observed that a decree-holder need not be the
plaintiff. A person who is not a party to the suit but an order capable of execution
has been passed in his favour is also a decree-holder. Thus where a decree for
specific performance is passed such a decree is capable of execution by the
plaintiff as well as the defendant and therefore either of them can be decree-holder.
Satyawati v. Rajinder Singh and Anr. [(2013) 9 SCC 491]
A three-Judge Bench of the Supreme Court of India has observed that Decree
Holders must enjoy the fruits of the decree obtained by them in an expeditious
manner.

Class Notes Decree

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Class Notes Decree

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DECREE Section 2(2)

The adjudication of a court of law is divided into two parts:

DEFINITION OF DECREE: SEC-2(2);

"decree" means the formal expression of an adjudication which, so far as regards

(b) any order of dismissal for default.

Explanation .-A decree is preliminary when further proceedings have to be taken

Means the formal expression of an adjudication which,

So far as regards the Court expressing it,

Conclusively determines the rights of the parties,

With regards to all or any of the matters in controversy in the suit,

And may be either preliminary or final.

1. There must be an adjudication - The most essential feature of a decree is

4. Conclusive Determination - The determination of the right must be conclusive.

5. Formal expression - To be a decree, the court must formally express its

Examples of decisions which are Decrees - Dismissal of appeal as time barred,

What is Deemed decree

Rejection of plaint and determination of the issue of restitution of decree are

As held in the case of Mool Chand v. Director, Consolidation, a preliminary

1. When no appeal is filed against the decree within a prescribed time

Partly preliminary and partly final decree

If there is a suit of possession of an immovable property along with the issue of

1. Passes a decree deciding the possession of the property.

General Explanation of Decree holder

Satyawati v. Rajinder Singh and Anr. [(2013) 9 SCC 491]

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