GURPREET SINGH vs CHATUR BHUJ GOEL

The Supreme Court held that under Order XXIII Rule 3 of the Civil Procedure Code, 1908, a compromise must be in writing and signed by the parties to be enforceable. The Court clarified that the amendment requiring a written agreement aims to prevent frivolous claims of settlement. In this case, since the respondent attempted to resile from an oral compromise not reduced to writing, the High Court was justified in directing that the appeal be decided on merits, leading to the dismissal of the appellant's appeal.