The essence of difference between a ‘decree’ and ‘order’ seems to be in the nature of the decision rather than in the manner of expression, for the words ‘formal expression’ appear in both the definitions. Both the decree and order are adjudications of a court of law.
The difference lies between the two in the matter of appeal. In the first place, every decree is appealable, i.e., a first appeal invariably lies from a decree unless it is expressly provided in the body of this Code or by any other law for the time being in force.
For example, it is expressly provided in Section 96 that no appeal shall lie from a decree passed by the court with the consent of parties. Nor shall an appeal lie under Section 96, except on a question of law, from a decree in any suit of the nature cognizable by courts of small causes when the amount or value of the subject-matter of the original suit does not exceed three thousand rupees. But every order is not appealable. Only those orders are appealable which are specified in Section 104 and Order 43, rule 1.
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In the second place, a second appeal lies to the High Court in the case of decree if there is some substantial question of law involved therein. No second appeal lies at all in the case of orders.
In the third place, a decree in an adjudication which conclusively determines the rights of the parties with regards to all or any of the matters in controversy; an order may or may not finally determine the right of the parties.
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In the fourth place, a decree originates from a suit commenced by presentation of a plaint. An order may not necessarily originate from a suit; it generally arises from a proceeding commenced on an application.
And. lastly, a decree may be preliminary or final, but there is no such difference in an order.