DHIRENDRA KUMAR GARG AND ORS. vs SMT. SUGANDHI BAI JAIN & ORS.

The Supreme Court held that the compromise decree in Civil Appeal No. 7-A of 1965 was invalid as it did not comply with the requirements of Order XXXII, Rule 7 of the Code of Civil Procedure, which mandates court permission for a guardian to compromise on behalf of minors after considering all relevant circumstances. The Court found that the lower courts failed to ensure that the compromise was in the best interest of the minor respondents, leading to the reversal of the High Court's decision. Consequently, the Court directed that the Civil Appeal No. 7-A of 1965 be disposed of afresh in accordance with law.