K. VENKATACHALA BHAT vs KRISHNA NAYAK (D) BY LRS. .

The Supreme Court held that the Karnataka High Court erred in disposing of a writ petition based on a compromise memo and affidavit that were not signed by the appellants, violating the principles of natural justice. The Court emphasized that under Order XXIII Rule 3 of the Code of Civil Procedure, 1908, a compromise must be agreed upon by all parties involved. Consequently, the Supreme Court set aside the High Court's order and allowed the appeal, reinstating the appellants' rights.