Generally Decree means final decision of the court. According to s.2(2) Decree" means ..

1. Decree and Order:
The Code of Civil Procedure, 1908 by Mahamud
Wazed,
Author:
1.Handbook on Penal Code, 1860;
2.Handbook on Code of Civil Procedure,1908;
3.Book on Bar Council & Judicial Exam
Decree, S. 2(2)
Generally Decreemeans final decisionof the court.
According to s.2(2) Decree" means
 the formal expression of an adjudication
 Court expressing it
 To determine the rights of the parties with regard to all or any
of the matters in controversy in the suit
 The determination must be conclusive in nature
"
For example
In a suit between X and Y, X may claim that a particular property P belongs X.
After hearing all the arguments, the court will rule in the favor of either X or Y.
The final decision of the court regarding this claim is a decree.
From the above definitionwe cansee the following essential elements of a
decree -

2. 1. There must be an adjudication
Adjudication means Judicial Determination of the matter in dispute.
For example, dismissing a suite because of default in appearance of the plaintiff is
not a decree. But dismissing a suite on merits of the case would be a decree.
2. There must be a suit
Decree can only be given in relation to a suit. Although CPC does not define what
suit means, in Hansraj vs Dehradun Mussoorie Tramways Co. Ltd. AIR 1933, the
Privy Council defined the term suit as "a civil proceeding instituted by the
presentation of a plaint".
3. Rights of the parties
The adjudication mustbe about any or all of the matters in controversy in the
suit.
4. Conclusive Determination
The determination of the right must be conclusive.
5. Formal expression
To be a decree, the court mustformally express its decision in the manner
provided by law. A mere comment of the judgecannot be a decree.
Decree shall include
 the rejection of a plaint [Or-7, R-11]and

3.  the determination of any question within section 144
Decree shall not include
 Any adjudication from which an appeal lies as an appeal from an
order, [Or.43] or
 Any order of dismissal for default. [ Or-9, Rr-2,3,8; Or-41, Rr-
11(2), 17, 18]
Kinds of Decree
2 Types:
1. Preliminary decree or
A decree is preliminary when further proceedings have to be taken
before the suit can be completely disposed of. [Or-20, Rr-12 to
18; Or-34, R-2 to 8]. CPC provides for passing a preliminary
decrees in several suits such as - suit for possession and mesne
profits, administration suit, suits for pre-emption, dissolution
of partnership, suits relating to mortgage. In Narayanan vs
Laxmi Narayan AIR 1953, it was held that the list given in CPC
is not exhaustive and a court may pass a preliminary decree in
cases not expressly provided for in the code.
2. Final decree
It is final when such adjudication completely disposes of the suit.
A final decree settles all the issues and controversies in the suit.
[Or-20, Rr-10 to 11]
Decree may be partly preliminary andpartly final.
[Or- 20, R-18]
Preliminary andFinal decree

4. The difference between a preliminary and final decree though fairly
straightforward has been the subjectmatter of debate.
A final decree here means disposal of the suit; if a decree has been passed
but the suit has not been completely disposed off, then the decree is a
preliminary one.
A preliminary decree is usually passed where the Court waits for the
situation to mature itself to a stage where a final decree may be passed. It is
usually passed in suits for possession and mesne profits, suits for pre-emption
etc.
A final decree may be said tobe final intwo ways:
 when the time for appeal has expired without appeal being
filed against the preliminary decree or the matter has been
decided by the highest court;
 When, as regards to the court passing the decree, the same
stands completely disposed of.
Itis the latter sense that the word ‘decree’ is used in section 2(2) of the Code.”
So, when in a suit for possession, the court determines that the parties has
a right of mesne profit, but appoint a commission for inquiry to determine the
appropriate amount that to be given as mesne profit and later on the basis of
such report received finally decides the matter. In such situation, the first
decision, which determines the right of mesne profit, is the preliminary decree
and the final decision wherein the amountis also mentioned is final decree.
How many Preliminary Decree andFinal Decree may be in a Suit?
As the code is silent about the point, and hence the conflict in opinion was
observed in the decisions of different High Courts. As in the case of Jyoti Prasad
V. Ganeshi Lal , AIR 1961Punj 120, the high court opined that there can be only

5. one preliminary decree in a suit, however in the case of Peary Mohan Mookerjee
V. Manohar Mookerjee, AIR 1924 Cal 160, culcutta high court held there can be
more than one preliminary decree.
The debate is concluded by the pronouncement of the Supreme Court in
Phoolchand V. Gopal Lal ,AIR 1967 SC 1470, wherein it has been observed that
there is nothing in the Code which prohibits passing of more than one preliminary
decree, if circumstances justify the sameand it may be necessary to do so.
However, this observation was restricted to the partition suit only as the court
specifically mentioned.
In Gulusam Bivi V. Ahamadasa Rowther, AIR 1919 Mad 998, the High Court of
Madras, referring toRules 12 and18 of Order 20 of the Code, stated:
“Neither rule contemplates more than one preliminary decree and one final
decree in one suit. In fact, the code nowhere contemplates more than one final
decree in one suit.”
Finally, in Shankar V. Chandrakant, AIR 1995 SC 1211, the Supreme Court Said “It
is settled law that more than one final decree can be passed.”
DeemedDecree
As mentioned under sec-2(2) that the rejection of plaint and determination of any
questions under section 144 of the code shall deemed to be a decree; however it
shall not include the dismissal of suit in default and any adjudication from which
an appeal lies as an appeal from an order.

6. Focusing Points
 There may be one or more decree in a suit, but final decree may be
one.
 Rejection plaint is a decree but rejection of application for pauper
suit is not a decree.
Compromise Decree
Decree given on the basis of compromise or agreement. No appeal
against compromise decree.
"Order"S.2(14)
"Order" means
 the formal expression of any decision of a Civil Court
 which is not a decree:
Dismissing a suite because of default in appearance of the plaintiff is not a decree.
This decision is called order. Decisions made in misc.casealso called order.
Kinds
1. Appealable order
2. Non-appealable order
Decree & Order
Decree - S. 2(2) Order S. 2(14)
Can only be passed in a suit originated by
the presentation of a plaint.
Can be passed in a suit originated by
the presentation of a plaint,
application, or petition.

7. Contains Conclusive Determination of a
right
May or may not finally determine a
right.
May be final, preliminary, or partly
preliminary - partly final.
Cannot be a preliminary order.
In general, there can only be one decree or
at the most one preliminary and one final
decree in a suit.
There can be any number of orders in
a suit.
Every decree is appealable unless an
appeal is expressly barred.
Only those orders which are specified
as appealable in the code are
appealable.