Role of Lawyers in Effecting Compromise of Suit
By
Keshav Dayal
What is the role of lawyers in effecting compromise of suit? It is necessary for a party to sign the agreement of compromise or can a lawyer sign the agreement deed on behalf of a client and is there implied authority for the counsel to act on behalf of client? Is it necessary for the counsel to obtain necessary authority in writing before signing a compromise deed on behalf of his client? These are some of the questions which came up for decision in a recent decision of the Supreme Court in Byram Pestonji Gariwala v. Union Bank of India reported in AIR 1991 SC 2234.
The question of law arises regarding construction of added Order XXIII, Rule III, CPC as amended by CPC Amending Act 1976. The rule read with the proviso which has been added by the amendment Act reads as under "where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise (in writing and signed by the parties) or where the defendan ....