Where the agreement is for the delivery of any property, or for the doing, or the refraining from doing any particular act, the estimated value of the property to be delivered, or to which the act specified has reference, shall be stated in the agreement. (Order XXXVI, Rule 2).
The agreement with an application is then filed in the court which would have jurisdiction’ to entertain a suit of the amount or value of the subject-matter involved in the agreement. The application is numbered and registered as a suit between one or more of the parties claiming to be interested as plaintiff or plaintiffs, and the other or the others of them as defendant or defendants and notice is given to all the parties to the agreement, other than the party or parties by whom the application was presented. (Order XXXVI, Rule 3).
The case is then set down for hearing as a suit in the ordinary manner, and where the court is satisfied, after examination of the parties, or after taking such evidence as it thinks fit, that the agreement was duly executed by them, that they have a bona fide interest in the question stated therein and that the same is fit to be decided, it proceeds to pronounce judgment thereon, as in an ordinary suit, and upon the judgment so pronounced a decree follows. (Order XXXVI, Rule 5).
No appeal shall lie from a decree passed under Rule 5 (Order XXXVI, Rule 6).
The relevant provisions governing a special case are embodied in S. 90 and Order XXXVI which have been discussed above. For the applicability of the rules contained in Order XXXVI, the filing of a proper agreement with an application is a condition pre-requisite. Merely stating the question of law for the opinion of the court, but without an agreement by the parties to pay money or deliver property consequent on the finding of the court, is not compliance of the provisions of S. 90 or Order XXXVI, Rule 2.
Order XIV, Rules 6 and 7 also refer to cases where parties to a suit by agreement state the question of fact or of law in the form of an issue and further enter into an agreement in writing that, upon the finding of the court in the affirmative or the negative of such issue: (a) a sum of money specified in the agreement or to be ascertained by the court shall be paid by one of the parties to the other of them, or that one of them be declared entitled to some right or subject to some liability specified in the agreement; (b) some property specified in the agreement and in dispute in the suit shall be delivered by one of the parties to the other of them; or (c) one party shall do or abstain from doing some particular act specified in the agreement and relating to the matter in dispute.
The court, after being satisfied that the agreement was duly executed by the parties, that they have a substantial interest in the decision of such question and that the same is fit to be tried and decided, proceeds to try the issue, states its finding and pronounces judgment, upon which a decree follows.