Updated: Jul 4, 2020
In the United States, a friendly suit or collusive suit is most often used when two parties desire or require judicial recognition of a settlement agreement, and so one sues the other despite the lack of conflict between them.
According to Indian law friendly suit is defined in Section-90 and Order-36 of The Code Of Civil Procedure 1908. Section-90 provides that where any person agrees in writing to state a case for the opinion of court than court shall try and determine the same in the manner prescribed. In this suit, the parties do not approach to the court by the presentation of plaint but they come with an agreement. Generally, such suit is instituted by the parties for the purpose of obtaining the opinion of the court in respect of any matter to the question of any fact or of law.
Rule-1 of Order-36 provides that the parties claiming to be interested in the decision of the question of any fact or law may enter into an agreement in writing stating such question in the form of a case for the opinion of the court.
Section-90 empowers the court to try such suit if the parties have entered into an agreement for this purpose. For the friendly suit following condition are necessary:
1. The party must enter into an agreement in writing stating the question on which they desire to obtain the opinion of the court.
2. Such an agreement must be duly executed by the parties.
3. The parties must have a bonafide interest in the question stated.
4. In the opinion of the court, such a question should be fit to be decided.
According to Rule-6 of Order-36, an appeal shall not lie against a decree passed in the friendly suit.