MOTI LAL BANKER vs MAHRAJ KUMAR MAHMOOD HASAN KHAN

The Supreme Court held that a compromise in execution proceedings allowing for interest at a higher rate than decreed is enforceable under Section 47 and Order 21 Rule 2 of the Civil Procedure Code, 1908. The Court overruled the precedent set in Mr. Hasan Khan v. Motilal, A.I.R. 1961 All. 1, affirming that parties can adjust their rights and obligations under a decree through compromise. The Court concluded that the executing court has the authority to determine questions arising from such compromises, thus validating the agreement for higher interest.