The parties’ compromise was incorporated into the decree disposing of the appeal.

The respondents had obtained a decree for specific performance in O.S. No. 1306/2018, dated 26 June 2023.

The appellant challenged that decree under Section 96 CPC.

During the appeal, the parties filed a compromise petition under Order XXIII Rule 3 CPC, stating that they had settled their dispute concerning the suit schedule property voluntarily.

Under the compromise, the appellant acknowledged receipt of ₹6,00,000 as full and final settlement, undertook to execute and register a sale deed and clear encumbrances and property-tax arrears, and agreed to deliver vacant possession by 1 January 2027.

The respondents’ deposit of ₹8,84,000 before the trial court was to be claimed by the appellant through due process.

The judgment records the compromise cheque as dated 10 November 2026, although the judgment itself is dated 28 September 2026.

1. Whether the parties’ compromise petition should be accepted under Order XXIII Rule 3 CPC

2. Whether the appeal should be disposed of in accordance with the terms of that compromise

Order XXIII Rule 3 CPC provides the procedural basis for recording a lawful compromise between parties and disposing of the proceeding in its terms.

The appeal was brought under Section 96 CPC, but the Court did not determine the merits of the trial court’s specific-performance decree; it disposed of the appeal on the parties’ compromise.

The appellant and both respondents appeared personally with their advocates, affirmed that the settlement was voluntary and free from coercion or undue influence, and signed the compromise petition; counsel also signed it.

The petition set out the settlement terms, including payment, execution of the sale deed, clearance of encumbrances, delivery of possession, and recourse to execution proceedings in the event of default.

On that basis, the Court accepted the compromise and made it part of the decree, without addressing the underlying merits of the appeal.

It further ordered that the compromise petition form part of the decree.