SMT. PERIYAKKAL & OTHERS vs SMT. DAKSHYANI

The Supreme Court held that under Order XXI, Rule 90 of the Code of Civil Procedure (C.P.C.), the High Court erred in dismissing the appellants' application for extension of time to deposit a sum agreed upon in a compromise. The Court clarified that once a compromise is made, the stipulated time becomes the time allowed by the Court, which retains the jurisdiction to extend it in appropriate cases to prevent manifest injustice. The appeal was allowed, and the case was remanded to the High Court for fresh disposal in accordance with the law.