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THE FIRST SCHEDULE · ORDER XXIII Withdrawal and Adjustment of Suits

Order XXIII Rule 3: Compromise of suit

The Code of Civil Procedure, 1908

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 1[in writing and signed by the parties], or where the defendant satisfied the plaintiff in respect to the whole or any part of the subject-matter of the suit, the Court shall order such agreement, compromise or satisfaction to be recorded, and shall pass a decree in accordance therewith 2[so far as it relates to the parties to the suit, whether or not the subject-matter of the agreement, compromise or satisfaction is the same as the subject-matter of the suit:]

1[Provided that where it is alleged by one party and denied by the other that an adjustment or satisfaction has been arrived at, the Court shall decide the question; but not adjournment shall be granted for the purpose of deciding the question, unless the Court, for reasons to be recorded, thinks fit to grant such adjournment.]

1[Explanation.— An agreement or compromise which is void or voidable under the Indian Contract Act, 1872 (9 of 1872), shall not he deemed to be lawful within the meaning of this rule.]

Footnotes in the official text

  1. 1.Ins. by Act 104 of 1976, s. 74 (w.e.f. 1-2-1977).
  2. 2.Subs. by s. 74, ibid., for certain words (w.e.f. 1-2-1977).

Questions on this rule

4 questions in 15 of our papers cite Order XXIII Rule 3. Try these from the free papers:

  1. 1. Consider the following statements under Order XXIII CPC: 1. An agreement or compromise that is void or voidable under the Indian Contract Act, 1872 is not a lawful compromise within the meaning of Rule 3. 2. A compromise in a representative suit entered into without the leave of the Court expressly recorded in the proceedings is voidable at the instance of the persons represented. 3. A suit in which the manager of an undivided Hindu family sues as representing the other members of the family is a 'representative suit' for the purposes of Rule 3B. Which of the statements given above are correct?

Practise questions on Civil Procedure Code