What is a decree?

Decree is defined under section 2(2) of CPC, 1908. Under the code, it is expressed as follows:

(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 3*** 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;

It is a formal expression of an adjudication

A decree is a formal expression which means that it is made by court in a formal manner as instructed by the code. It is read with Order 20 rule 6 which provides the contents of a decree. The sub-rule (1) of rule 6 provides that decree shall agree with the judgment; it shall contain the number of the suit, the name and descriptions of the parties, their registered addresses, and particulars of the claim, and shall specify clearly the relief granted or other determination of the suit.

Pronouncement of judgment is followed by the decree. O. 20 rule 6-A provides this procedure to be followed which states that decree is drawn up as expeditiously as possible and, in any case, within fifteen days from the date of judgment is pronounced.

Adjudication is done

Adjudication means the application of judicial mind or judicial determination of a matter in dispute. It determines the rights of the party conclusively with regard to all or any of the matters in controversy in the suit.

Conclusively determines the rights of the parties

A decree is conclusive determination of rights by the court. It means that a substantive right of the party must be decided in a decree. The decree shall have a conclusive effect meaning that it should give end to the matter in controversy.

In Dhani Ram v. Lal Sri Ram (1980) 2 SCC 162, the court held that a decree-holder need not necessarily be plaintiff. A person who is not a party to the suit but in whose favour an order capable of execution has been made is also a decree holder.

Maybe either preliminary or final

The decree may either be final or preliminary. A preliminary decree is one which declares the rights and liabilities of the parties leaving the actual result to be worked out in further proceedings. As a result of the further enquiries pursuant to the preliminary decree rights of parties are fully determined and final decree is passed.[1]

The difference between preliminary and final decree have been eloquently explained in Renu Devi v. Mahendra Singh,[2] it states that the difference lies in its purpose. A preliminary decree declares the rights and liabilities of the parties and leaves the actual result to be worked out for a later stage. Final decree determines the rights of the parties finally and decree is passed in accordance with such determination. There can be more than one preliminary decree if circumstances justify the same and where it is necessary to do so.[3]

Also, it is a settled law that more than one final decree can be passed.[4]

Decree includes

1. Rejection of plaint
2. Determination of any questions within section 144.

Examples of decrees:

1. Order of abatement of suit;
2. Dismissal of appeal as time barred;
3. Dismissal of suit or appeal for want of evidence of proof;
4. Rejection of plaint for non-payment of court fees;
5. Granting or refusing to grant costs or instalment;
6. Modification of scheme under section 92 of the Code;
7. Order holding appeal not maintainable;
8. Order holding that the right to sue does not survive;
9. Order holding that there is not cause of action;
10. An award passed by Lok Adalat.

Decree Excludes

1. Any adjudication from which an appeal lies as an appeal from an order, or
2. Any order of dismissal for default.

Examples of non-decrees:

1. Dismissal of appeal for default;
2. Appointment of commissioner to take accounts;
3. Order of remand;
4. Order granting or refusing interim relief;
5. return of plaint for presentation to proper court;
6. dismissal of suit under Order 23 rule 1;
7. rejection of application for condonation of delay;
8. order holding an application to be maintainable;
9. Order refusing to set aside sale;
10. Order directing assessment of mesne profits.

Difference between Order and Decree

‘Order’ is defined under section 2(14) which means the formal expression of any decision of a Civil Court which is not a decree. A decree can only be passed in a suit which commenced by presentation of a plaint. An order may originate from a suit by presentation of a plaint or may arise from a proceeding commenced by a petition or an application.

Determination of rights is not necessary in order. However, it is necessary in case of decrees. A decree may be preliminary or final or partly preliminary and partly final, but there cannot be preliminary order. Every decree is appealable unless otherwise expressly provided but every order is not appealable. No second appeal in case of orders.

Order, Decree and Judgment

The ‘Judgment’ is defined under section 2(9) CPC, it states that judgment means the statement given by the Judge on the grounds of a decree or order.

If we read it with O. 20 rule 6 and rule 6-A, it provides decree shall agree with the judgment. So, it means judgment is stated first and decree is passed later and we can say that a judgment is followed by a decree.

The statement made with respect to the grounds of decree or order is called a judgment. There should be conformity with the statements and the respective orders and decrees.

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[1] Shankar Chandrakant, (1995) 3 SCC 413.

[2] (2003) 10 SCC 200.

[3] Phoolchand v. Gopal Lal, AIR 1967 SC 1470

[4] Rachakonda Venkar Rao v. R. Satya Bai, AIR 2003 SC 3322.