Code of Civil Procedure, 1908 | Order 23

Order XXIII Rule 3B CPC - Compromise in Representative Suits

Order XXIII Rule 3B of the Code of Civil Procedure, 1908 (CPC) protects persons represented in civil litigation. A compromise in a representative suit requires the court's express permission, recorded in the proceedings, and prior notice to persons appearing to have an interest in the suit.

Key rule: A compromise entered into in a representative suit without the court's expressly recorded leave is void under Order XXIII Rule 3B(1).

What does Order XXIII Rule 3B provide?

Rule 3B(1) - Court leave is mandatory

No agreement or compromise in a representative suit may be entered into without the leave of the court expressly recorded in the proceedings. An agreement or compromise made without that recorded leave is void. This is a statutory safeguard, not merely a procedural formality.

Rule 3B(2) - Notice before granting leave

Before granting permission, the court must give notice, in the manner it considers appropriate, to persons who appear to it to be interested in the suit. This allows affected persons to raise objections or otherwise be heard before a settlement potentially binds them.

Meaning of a representative suit under Rule 3B

The Explanation to Rule 3B expressly includes four categories:

Section 91 or Section 92 CPC suits: Section 91 deals with suits concerning public nuisance or other wrongful acts affecting or likely to affect the public; Section 92 governs specified suits concerning alleged breaches of public charitable or religious trusts and related reliefs.
Order I Rule 8 suits: Cases in which one or more persons sue or defend on behalf of numerous persons having the same interest, subject to the conditions of that rule.
Undivided Hindu family litigation: Suits brought by or against the manager of an undivided Hindu family in a representative capacity for other family members.
Other binding representative proceedings: Any other suit where, under the CPC or another applicable law, the decree may bind someone who is not named as a party.

Procedure for a lawful compromise

Identify whether the litigation falls within the statutory definition of a representative suit.
Place the proposed settlement and an application seeking leave before the court.
Ensure the court gives notice to persons appearing to be interested, in the manner it directs.
Obtain an express order granting leave and ensure that leave is recorded in the proceedings.
Comply separately with Order XXIII Rule 3 CPC, including the requirements applicable to recording a lawful compromise and passing a compromise decree.

The precise notice procedure and evidence needed depend on the circumstances and the court's directions. A settlement signed only by the named litigants does not dispense with Rule 3B where other persons are represented.

What happens if court leave is not obtained?

Rule 3B(1) expressly declares such a compromise void. Where a compromise decree has already been passed, the appropriate procedure for challenging it must be assessed in light of Order XXIII Rule 3A, which bars a separate suit to set aside a decree on the ground that its underlying compromise was not lawful. The remedy and standing of an affected person depend on the procedural circumstances and applicable judicial decisions.

Order XXIII Rule 3: Recording a lawful agreement, compromise or satisfaction and passing a decree.
Order XXIII Rule 3A: Bar against a separate suit to set aside a compromise decree on the ground of an unlawful compromise.
Order I Rule 8: Representation of numerous persons having the same interest in a suit.
Sections 91 and 92 CPC: Public nuisance and specified litigation relating to public charitable or religious trusts.
Order XXXII Rule 7: Special safeguards for agreements or compromises involving minors and certain represented persons, where applicable.

Practical example

Suppose several residents bring a suit under Order I Rule 8 on behalf of a larger group. The named plaintiffs and defendant later agree to settle. Because the suit is representative, the parties cannot validly bypass the notice and express court-leave requirements of Rule 3B merely because the named parties agree. The court must first consider the interests of those represented.

Official statutory source

Read the Code of Civil Procedure, 1908 - official India Code PDF (First Schedule, Order XXIII, Rule 3B). The text should also be read with applicable state amendments, procedural rules and binding case law.

Legal information updated 14 October 2026. This article explains the central CPC provision and is not a substitute for case-specific legal advice.