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 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 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:
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 no 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.
Explanation.- An agreement or compromise which is void or voidable under the Indian Contract Act, 1872 (9 of 1872), shall not be deemed to be lawful within the meaning of this rule.
Order XXIII Rule 1 CPC Withdrawal of suit or abandonment of part of claim
Order XXIII Rule 1A CPC When transposition of defendants as plaintiffs may be permitted
Order XXIII Rule 2 CPC Limitation law not affected by first suit
Order XXIII Rule 3 CPC Compromise of suit
Order XXIII Rule 3a CPC Bar to suit
Order XXIII Rule 4 CPC Proceedings in execution of decrees not affected