DAMODAR ROPEWAYS & CONSTRUCTION CO. (P) LTD. vs CHRISTOPHER MARTIN DASGRANGES MARTIN & ORS.

The Supreme Court held that under Order XXIII, Rule 3 of the Code of Civil Procedure, a court must ensure that the terms of a compromise are in the interest of the Trust before acceptance. In this case, the Court found that the agreement provided for future expansion of the school and was more beneficial than previous offers. The Court permitted the Board of Governors to enter into the compromise with variations, including an escalation clause for ground rent, thereby upholding the agreement.