UNION BANK OF INDIA Vs. BYRAM PESTONJI GARIOWALA

JUDGEMENT

(1.) THIS Chamber Summons involves certain interesting and important questions of law. The questions involved in this proceedings for considerations of the Court are as under :

(2.) IT is necessary to refer to facts and circumstances leading to making of this application at least briefly. The relevant facts and circumstances are as under :

(3.) BY Amending Act 104 of 1976, Order XXIII, Rule 3 of the Code of Civil Procedure, 1908 was amended so as to require that the compromise must be in writing and signed by the parties. Prior to the said amendment, a party to the suit could propound an oral compromise and if such a compromise pure forward by one party was disputed by other party, the Court was required to record evidence and decide as to whether the alleged compromise was proved or not. The relevant portion of the Statement of Object and Reasons in respect of the said amendment reads as under :