JAYAWANTRAJ PUNAMIYA vs M/S.H CHOKSI & CO.

The Supreme Court held that a compromise contingent upon the action of a third party cannot be recorded under Order XXIII, Rule 3 of the CPC. The Court found that the compromise in question, which involved appointing a mediator to sell property, did not achieve finality as it depended on the actions of Shri Mohanlal S. Mehta, who had not taken steps to sell the disputed flats. Consequently, the appeal was dismissed, affirming the Bombay High Court's decision that the compromise was not enforceable.