Rule 1 of CPC : Rule 1: Power to state case for Court's opinion.

Explanation using Example

Example 1:

Scenario: Dispute over Property Ownership

Parties Involved:

• Mr. A (Claimant)
• Mr. B (Defendant)

Agreement: Mr. A and Mr. B have a dispute over the ownership of a piece of land. They decide to resolve this dispute by entering into a written agreement under Rule 1 of Order XXXVI of the Code of Civil Procedure, 1908. The agreement states the following:

1. The question of law and fact to be decided by the Court is: "Who is the rightful owner of the land located at XYZ address?"
2. Upon the Court's decision:
   • (a) If the Court decides in favor of Mr. A, Mr. B shall pay Mr. A a sum of ₹5,00,000.
   • (b) If the Court decides in favor of Mr. B, Mr. A shall vacate the land and hand over possession to Mr. B.
   • (c) Both parties agree to refrain from selling or transferring the property until the Court's decision is made.

Court's Role: The Court will review the facts and documents presented by both parties, such as property deeds, tax receipts, and witness statements, to determine the rightful owner of the land.

Example 2:

Scenario: Dispute over Contractual Payment

Parties Involved:

• Company X (Service Provider)
• Company Y (Client)

Agreement: Company X and Company Y have a dispute regarding the payment for services rendered. They decide to resolve this dispute by entering into a written agreement under Rule 1 of Order XXXVI of the Code of Civil Procedure, 1908. The agreement states the following:

1. The question of law and fact to be decided by the Court is: "Is Company Y liable to pay Company X the outstanding amount of ₹10,00,000 for the services provided?"
2. Upon the Court's decision:
   • (a) If the Court decides in favor of Company X, Company Y shall pay Company X the outstanding amount of ₹10,00,000.
   • (b) If the Court decides in favor of Company Y, Company X shall waive the outstanding amount and issue a no-dues certificate to Company Y.
   • (c) Both parties agree to refrain from taking any further legal action regarding this payment until the Court's decision is made.

Court's Role: The Court will review the facts and documents presented by both parties, such as the service contract, invoices, and correspondence, to determine whether Company Y is liable to pay the outstanding amount to Company X.