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AIR 1988 SUPREME COURT 400 ::1988 (1) Rev LR 413
Supreme Court Of India
(From : Punjab and Haryana)
Hon'ble Judge(s): A. P. Sen, B. C. Ray , JJ

Civil P.C. (5 of 1908) , O.23 R.3— Compromise of suit - Compromise entered into during hearing of suit or appeal - Court must insist that compromise be reduced in writing and signed by the parties. AIR 1983 Punj and Har 393, Overruled. Under R.3 as it now stands, when a claim in suit has been adjusted wholly or in part by any lawful agreement or compromise, the compromise must be in writing and signed by the parties and there must be a completed agreement between them. To constitute an adjustment, the agreement or compromise must itself be capable of being embodied in a decree. When the parties enter into a compromise during the hearing of a suit or appeal, there is no reason why the requirement that the compromise should be reduced in writing in the form of an instrument signed by the parties should be dispensed with. The Court must therefore insist upon the parties to reduce the terms into writing.(Para 10 11) The plea that the words "in writing and signed by the parties" qualify the words "any lawful agreement or compromise" appearing in the first part of the Rule which refers to an adjustment or settlement of the claim in suit by a lawful agreement or compromise outside the Court, meaning thereby that where the parties make a statement before the Court that the dispute between them has b....

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