This article is written by Okediji Prosper, University of Abuja, Law, Year 5, during her internship at LeDroit India
Introduction
A friendly suit, also known as a suit by consent or ex parte suit, is a unique legal mechanism provided under Section 90 of the Code of Civil Procedure, 1908 (CPC), whereby parties who have a genuine legal dispute or uncertainty regarding their rights can approach the court to obtain a judicial determination without engaging in adversarial litigation.
Section 90 CPC specifically deals with “Suits by or against persons for whom a next friend or guardian for the suit ought to sue or defend” in the context of stating a case for the opinion of the court. However, in broader legal practice, friendly suits have evolved to encompass situations where parties mutually agree to seek judicial clarity on disputed questions of law or fact, particularly in matters involving trusts, estates, property rights, interpretation of documents, and complex legal relationships.
The concept of friendly suits is grounded in the principle that courts exist not merely to resolve adversarial conflicts but also to provide authoritative legal guidance on genuine disputes where parties seek declaratory relief or interpretation of their rights and obligations. Unlike typical contentious litigation where parties are in hostile opposition, friendly suits involve parties who cooperate in presenting the case to the court while maintaining genuinely opposing legal positions on the substantive issues. The essence of a friendly suit is that while the parties agree on the procedure and desire for judicial determination, they have bona fide differences regarding their legal rights, duties, or the interpretation of legal instruments governing their relationship.
It is crucial to distinguish friendly suits from collusive suits. Collusive suits, which are prohibited under Section 23 of the CPC, involve parties who fabricate a dispute or manipulate facts to obtain a favorable decree that would prejudice third parties or circumvent legal provisions. Friendly suits, in contrast, involve real disputes where parties genuinely seek judicial clarification but choose to present the case cooperatively rather than adversarially. The legitimacy of a friendly suit depends on the existence of a genuine controversy, the absence of collusion to defraud others, and the presence of a real question requiring judicial determination.
Objectives of Friendly Suits
The primary objectives of filing a friendly suit include:
1. Obtaining Declaratory Relief on Disputed Rights: The foremost objective is to secure a judicial declaration regarding the rights, status, or legal position of the parties when there is genuine uncertainty or dispute about the same. This is particularly valuable in matters involving property titles, succession rights, interpretation of wills and trusts, partnership rights, or contractual obligations where parties need authoritative clarification to govern their future conduct.
2. Preventing Future Litigation: By obtaining a clear judicial determination on disputed questions while the parties are still amenable to cooperation, friendly suits help prevent future contentious and expensive litigation. Once the court has pronounced on the rights and obligations of the parties, it provides a binding precedent for their relationship, reducing ambiguity and potential conflict.
3. Interpreting Complex Legal Documents: Friendly suits serve the objective of obtaining judicial interpretation of complex legal instruments such as wills, trust deeds, partnership agreements, family settlement deeds, or constitutional documents of companies and societies where the language is ambiguous or the parties have differing understandings of their rights and obligations under such documents.
4. Resolving Succession and Trust Matters: In matters of inheritance, trusts, and estate administration, friendly suits enable beneficiaries, trustees, executors, and other interested parties to obtain judicial guidance on the proper administration of the estate or trust, distribution of assets, or interpretation of the testator’s or settlor’s intentions without engaging in hostile litigation that could damage family relationships or deplete estate assets.
5. Facilitating Cooperative Dispute Resolution: The objective is to resolve genuine legal disputes in a cooperative manner that preserves relationships, reduces costs, and expedites resolution. Unlike adversarial litigation where parties often take extreme positions, friendly suits allow parties to present their respective legal contentions honestly while maintaining a cooperative spirit in seeking judicial guidance.
6. Ensuring Legal Certainty: Friendly suits aim to eliminate legal uncertainty that may be hampering business transactions, property dealings, or personal decisions. By obtaining a definitive judicial pronouncement, parties can proceed with confidence in their legal position and make informed decisions about their affairs.
Detailed Explanation of Friendly Suits
Legal Framework and Statutory Provisions:
While Section 90 of the CPC specifically addresses procedural aspects in certain contexts, the broader concept of friendly suits draws authority from multiple provisions of the CPC, particularly:
- Section 34 CPC: Deals with persons who may be joined as plaintiffs and defendants
- Section 9 CPC: Confers jurisdiction on civil courts to try all suits of a civil nature
- Sections 31-33 CPC: Provide for declaratory decrees and injunctions
- Order I Rule 8 CPC: Deals with parties to suits where there are numerous persons with the same interest
The Specific Relief Act, 1963, particularly Sections 34-35, also provides the substantive basis for seeking declaratory relief, which is often the remedy sought in friendly suits. Section 34 of the Specific Relief Act allows any person entitled to any legal character or to any right as to any property to institute a suit for a mere declaration without claiming any further relief.
Essential Characteristics of Valid Friendly Suits:
1. Existence of Genuine Dispute: There must be a real and substantial dispute or uncertainty regarding legal rights, obligations, or status. The dispute cannot be fabricated or collusive. Courts carefully scrutinize friendly suits to ensure they involve genuine controversies requiring judicial determination.
2. Adverse Interests: While the parties may cooperate procedurally, they must have genuinely adverse legal interests in the subject matter of the suit. For example, in a suit for interpretation of a will, some beneficiaries may claim larger shares while others claim different shares, creating adverse interests even though they may jointly desire judicial clarity.
3. Absence of Collusion or Fraud: The suit must not be designed to defraud third parties, circumvent legal provisions, or obtain a decree that would prejudice persons not party to the suit. The parties must act in good faith and present all relevant facts and legal arguments honestly to the court.
4. Proper Representation of Interests: All parties whose interests may be affected by the court’s determination must be properly represented or joined as parties. This is crucial to ensure that the decree is binding and effective.
5. Full Disclosure: Parties in a friendly suit have an enhanced duty of full disclosure. Since the suit is not adversarial, parties must ensure that all relevant facts, documents, and legal arguments (including those that may be unfavorable to their position) are brought to the court’s attention.
Common Situations Where Friendly Suits Are Filed:
1. Interpretation of Wills and Trust Deeds: When a testator’s will contains ambiguous language or conflicting provisions, beneficiaries and executors may file a friendly suit seeking the court’s interpretation of the testator’s true intentions. Similarly, trustees and beneficiaries of trusts may seek judicial guidance on the proper interpretation of trust terms.
2. Succession and Inheritance Disputes: Family members who are potential heirs may have genuine disagreements about succession rights under personal laws or statutory provisions. A friendly suit can resolve these questions, particularly in complex matters involving Hindu Undivided Families (HUF), agricultural lands, or properties governed by special succession laws.
3. Property Title and Ownership Questions: Co-owners of property, parties to family settlements, or persons claiming under different title documents may file friendly suits to determine the true ownership, extent of shares, or nature of their respective rights in the property.
4. Partnership and Business Disputes: Partners who are dissolving a partnership or have disputes about profit-sharing, rights to business assets, or interpretation of partnership agreements may seek judicial determination through friendly suits while maintaining business relationships.
5. Constitutional Questions in Societies and Companies: Members of cooperative societies, companies, clubs, or other associations may have disputes regarding the interpretation of their governing documents, validity of elections, or rights of members, which can be resolved through friendly suits.
6. Tax and Financial Planning Matters: Though less common, parties may sometimes seek judicial clarification on the tax implications or legal characterization of certain transactions through friendly suits, though this is subject to restrictions regarding advisory opinions.
Procedure for Filing Friendly Suits:
1. Drafting the Plaint: The plaint in a friendly suit must clearly set out the facts giving rise to the dispute, the legal questions requiring determination, the grounds on which the parties have differing positions, and the specific declarations or relief sought. The plaint should explicitly state that the suit is being filed by consent to obtain judicial determination of genuine disputes.
2. Impleading All Necessary Parties: All persons whose interests may be affected must be made parties. In some cases, the court may require appointment of an advocate commissioner or amicus curiae to represent interests that might not be adequately represented by the parties.
3. Filing of Written Statement: Even in friendly suits, defendants typically file written statements setting out their legal position on the disputed questions. This ensures that the court has the benefit of all perspectives before making its determination.
4. Full Disclosure of Facts: Parties must file comprehensive affidavits disclosing all relevant facts, even those that might weaken their respective positions. This is essential because the court relies on parties’ candor in the absence of adversarial cross-examination.
5. Legal Arguments: Both sides must present their legal arguments thoroughly, citing relevant statutes, case law, and legal principles. The court may also appoint amicus curiae to ensure all legal aspects are properly argued.
6. Court’s Scrutiny: Courts carefully examine friendly suits to ensure they are not collusive and involve genuine disputes. The court may ask pointed questions, require additional evidence, or even dismiss the suit if it appears to be collusive or lacking in genuine controversy.
7. Decree and Its Effect: Once satisfied that the suit involves a genuine dispute, the court will pronounce its decision, which is binding on all parties. The decree has the same legal effect as any other judgment and can be enforced accordingly.
Judicial Approach and Landmark Judgments:
The Indian judiciary has developed clear principles governing friendly suits:
In Arjun Singh v. Mohindra Kumar (1964), the Supreme Court held that a friendly suit is maintainable when there is a real dispute between parties regarding their legal rights, but it must not be collusive. The Court emphasized that courts have a duty to scrutinize such suits carefully.
In Bai Vijli v. Nandshankar (1927), the Bombay High Court explained that when parties have adverse interests but are prepared to abide by the court’s decision, they may file a friendly suit provided there is a genuine dispute requiring judicial determination.
In Kishori Lal v. Chaltibai (1959), the Supreme Court clarified that the test for determining whether a suit is friendly or collusive is whether there is a genuine dispute between parties with adverse interests. If the suit is designed to obtain a decree to defraud others or circumvent law, it is collusive and must be dismissed.
In Syed Mohd. Salie Labbai v. Syed Mohd. (1971), the Court held that in suits for declaration regarding rights in property or interpretation of documents, parties having different interests may jointly approach the court for a decision without the suit being considered collusive, provided all material facts are disclosed.
Distinction Between Friendly Suits and Collusive Suits:
Understanding this distinction is critical:
Friendly Suits involve:
- Genuine disputes on legal questions
- Honest presentation of facts and law
- Adverse interests in the subject matter
- Full disclosure to the court
- Absence of intent to defraud third parties
Collusive Suits involve:
- Fabricated disputes
- Suppression of material facts
- Apparent but not real adverse interests
- Intent to obtain decree to prejudice others
- Designed to circumvent legal provisions
Limitations and Restrictions:
Friendly suits are subject to certain limitations:
1. No Advisory Opinions: Courts in India do not give advisory opinions on abstract or hypothetical questions. There must be a concrete dispute involving actual rights and obligations.
2. Res Judicata Concerns: The decree in a friendly suit is binding only on parties who were adequately represented. Third parties whose interests were not represented may challenge the decree in appropriate proceedings.
3. Scrutiny for Public Interest: Courts may refuse to entertain friendly suits if they involve questions of public policy, constitutional matters, or issues where adversarial litigation is necessary to protect public interest.
4. Requirement of Bona Fides: Courts will dismiss suits where they detect lack of bona fides, collusion, or attempt to defraud others, regardless of how the suit is characterized by parties.
Advantages of Friendly Suits:
- Cost-Effective: Reduces litigation costs as parties cooperate rather than engaging in prolonged adversarial proceedings
- Time-Saving: Expedites resolution as parties agree on facts and focus on legal issues
- Preserves Relationships: Maintains harmony among family members, business partners, or associates
- Legal Certainty: Provides authoritative judicial determination on disputed questions
- Binding Effect: Creates a binding precedent for parties’ future conduct
- Flexibility: Allows parties to frame issues precisely for judicial determination
Conclusion
Friendly suits under Section 90 and related provisions of the CPC represent an important mechanism in Indian civil procedure for obtaining judicial determination of genuine legal disputes in a cooperative rather than adversarial manner. They serve the dual purpose of resolving real controversies while preserving relationships and reducing the burden on the judicial system. The key to a valid friendly suit lies in ensuring that it involves a genuine dispute between parties with adverse interests, is conducted with full disclosure and good faith, and seeks judicial guidance on real legal questions rather than attempting to obtain collusive decrees that would prejudice others.
When properly utilized, friendly suits provide an efficient and effective means of achieving legal certainty on complex questions of law and fact, particularly in matters involving family property, succession, trusts, and interpretation of legal instruments. Courts play a crucial gatekeeping role in scrutinizing such suits to ensure they serve legitimate purposes and do not undermine the integrity of the judicial process. Understanding the proper scope, procedure, and limitations of friendly suits is essential for legal practitioners and parties seeking to resolve genuine disputes while maintaining cooperative relationships and achieving efficient justice.
