The code recognizes the following classes of decrees.

(i) Preliminary decree.

(ii) Final decree, and

(iii) Partly preliminary and partly final decree

Preliminary decree

When an adjudication decides the rights of the parties with regard to all or any of the matters in controversy in the suit, but does not completely disposes of the suit, it is a preliminary decree. A decree is preliminary when further proceedings have to be taken before the suit can be completely disposed of such a decree determines the rights of the parties with regard to some or one of the mater in controversy in the suit but does not completely disposes of the suit.

Mool Chand v. Dy. Director of Consolidation

A preliminary decree is only a stage in working out the rights of the parties which are to be finally adjudicated by a final decree (Mool Chand v. Dy. Director of Consolidation, (1995) 5 SCC 631).

The code provides for passing of preliminary decrees in the following

suits:

(1) Suits for possession and mesne profits – Order 20, Rule 12

(2) Administration Suit – Order 20, Rule 13

(3) Suit for pre-emption – Order 20, Rule 14

(4) Suit for dissolution of partnership – Order 20, Rule 15

(5) Suit for accounts between principal and agent – Order 20, Rule 16

(6) Suit for partition and Separate Possession – Order 20, Rule 18

(7) Suit for foreclosure of a Mortgage – Order 34, Rule 2.3

(8) Suit for sale of mortgaged property – Order 34, Rule 4.5

(9) Suit for redemption of a mortgage – Order 34, Rule 7.8

Narayanan v. Lakshmi Narayan, AIR 1953 TC 220 (222) (PB)

The above list is however not exhaustive and a court may pass a preliminary decree in cases not expressly provided for in the code. (Narayanan v. Lakshmi Narayan, AIR 1953 TC 220 (222) (PB).

There is a conflict of opinions whether there can be more than one preliminary decree in the same suit. Some High Courts have taken the view that there can be only one preliminary decree in the suit. (Bharat Indu v. Yakub Hasan, ILR (1913) 35 All 159) while other High Courts have, held that there can be more than one preliminary decree. As regards partition suits, the debate is contended by the pronouncement of the Supreme Court in Phool Chand v. Gopal Lal, AIR 1967 SC 1470, where in it has been observed that there is nothing in the Code of Civil procedure which prohibits passing of more than one preliminary decree, if circumstances justify the same and it may be necessary to do so.

Final decree

A Final decree is that which completely determines all the issue of a case.

A decree may be said to be final in two ways-

(a) When within the prescribed period no appeal is filed against the decree or the matter has been decided by the decree of the highest court

(b) When the decree, so far as regards the court passing it, completely disposes of the suit (Shankar v. Chandrakant, (1995) 3 SCC 413 (418).

It is in the latter sense that the words “final decree” are used here. A final decree is one which completely disposes of a suit and finally settles all questions in controversy between parties and nothing further remains to be decided thereafter. Thus, in a suit for recovery of money, if the amount found due to the decree holder is declared and the manner in which the amount is to be paid has also been laid dawn, the decree is a final decree.

Distinction: Preliminary decree and Final decree

1. The preliminary decree ascertains what is to be done, the final decree states the result achieved by means of Preliminary decree.

2.The Preliminary decree is not dependent on the final one, but the final decree is dependent on the preliminary decree.

3.In a partition suit, the preliminary decree declares the rights of the parties and the final decree divides the properties specifically by metes and bounds in terms of the right so declared, thereby completely disposing of the suit.