SHRI BYRAM PESTONJI GARIWALLA vs UNION BANK OF INDIA

The Supreme Court upheld the High Court's ruling that a decree based on a compromise signed by counsel is valid under Order XXIII, Rule 3 of the Civil Procedure Code, despite the 1976 amendment requiring signatures from the parties. The Court clarified that the term 'parties' includes their counsel, who have the authority to compromise on behalf of their clients unless explicitly limited. The judgment emphasized the legislative intent to expedite court proceedings and affirmed that compromises can encompass matters beyond the suit's subject matter, thus making such decrees executable.