Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise [in writing and signed by the parties] [Inserted by the Code of Civil Procedure (Amendment) Act, 1976, Section 72, Section 74 (w.e.f. 1.2.1977).] or where the defendant satisfied the plaintiff in respect of the whole or any part of the subject-matter of the suit, the Court shall order such agreement, compromise satisfaction to be recorded, and shall pass a decree is accordance therewith [so far as it relates to the parties to the suit, whether or not the subject-matter of the agreement, compromise or satisfaction is the same as the subject-matter of the suit:] [Substituted by for certain words (w.e.f. 1.2.1977).] [Provided that where it is alleged by one party and denied by the other that an adjustment or satisfaction has been arrived at, the Court shall decide the question; but not adjournment shall be granted for the purpose of deciding the question, unless the Court, for reasons to be recorded, thinks fit to grant such adjournment.] [Inserted by the Code of Civil Procedure (Amendment) Act, 1976, Section 72, Section 74 (w.e.f. 1.2.1976).] [Explanation-An agreement or compromise which is void or voidable under the Indian Contract Act,1872 (9 of 1872), shall not be deemed to be lawful within the meaning of this rule;] [Inserted by the Code of Civil Procedure (Amendment) Act, 1976, Section 72, Section 74 (w.e.f. 1.2.1976).]

High Court Amendments-[Allahabad].-(1) In rule 3, between the words "or compromise" and "or where", insert the words "in writing duly signed by the parties"; and between the words "subject-matter of the suit" and the words "the Court", insert the words "and obtains an instrument in writing duly signed by the plaintiff". (2) At the end of the rule 3, add the following: "Provided that the provisions of this rule shall not apply to or in any way affect the provisions of Order XXXIV, rules 3,5 and 8. Explanation.-The expressions "agreement" and "compromise", include a joint statement of the parties concerned or their Counsel recorded by the Court, and the expression "instrument" includes a statement of the plaintiff or his Counsel recorded by the Court." -(w.e.f. 31-8-1974). [Delhi].-Same as that of Punjab. [Himachal Pradesh].-Same as that of Punjab. [Karnataka].-Renumber existing rule 3 as rule 3 (1) and add the following as sub-rule (2): "(2) Where any such agreement or compromise as is referred to in sub-rule (1) is placed before the Court by a party suing or defending in a representative capacity in a suit, instituted, conducted or defended under the provisions of rule 8 of Order 1 of this Code, the Court shall not proceed with the consideration of the same or to pass a decree in accordance therewith without first giving notice of the application for recording such agreement or compromise in the manner prescribed in sub-rule (1) of Rule 8 of Order 1 of this Code for giving notice of the institution of such suit. The expenses of giving such notice shall be borne by such party or parties as the Court may direct."-(R.O.C. No. 2526/1959, dated 9-2-1967). [Madras].-In the proviso to Rule 3, for the words "Provided that" substitute the following: "Provided that the subject-matter of the agreement, compromise or satisfaction, in so far as it differs from the subject-matter of the suit, is within the territorial and pecuniary jurisdiction of the Court concerned: Provided further that."-(w.e.f. 23-1-1981). [Punjab, Haryana and Chandigarh].-Add the following provisos to rule 3:- "Provided that the hearing of a suit shall proceed and no adjournment shall be granted in it for the purpose of deciding whether there has been any adjustment or satisfaction, unless the Court for reasons to be recorded in writing, thinks fit to grant such adjournment, and provided further that the judgment in the suit shall not be announced until the question of adjustment or satisfaction has been decided: Provided further that when an application is made by all the parties to the suit, either in writing or in open Court through their Counsel, that they wish to compromise the suit, the Court may fix a date on which the parties or their Counsel should appear and the compromise be recorded, but shall proceed to hear those witnesses in the suit who are already in attendance, unless for any other reason to be recorded in writing, it considers it impossible or undesirable to do so. If upon the date fixed no compromise has been recorded, no further adjournment shall be granted for this purpose, unless the Court, for reasons to be recorded in writing, considers it highly probable that the suit will be compromised on or before the date to which the Court proposes to adjourn the hearing."

Where it is proved to the satisfaction of the Court that a suit has been adjusted wholly or in part by any lawful agreement or compromise [in writing and signed by the parties] [Inserted by the Code of Civil Procedure (Amendment) Act, 1976, Section 72, Section 74 (w.e.f. 1.2.1977).] or where the defendant satisfied the plaintiff in respect of the whole or any part of the subject-matter of the suit, the Court shall order such agreement, compromise satisfaction to be recorded, and shall pass a decree is accordance therewith [so far as it relates to the parties to the suit, whether or not the subject-matter of the agreement, compromise or satisfaction is the same as the subject-matter of the suit:] [Substituted by for certain words (w.e.f. 1.2.1977).] [Provided that where it is alleged by one party and denied by the other that an adjustment or satisfaction has been arrived at, the Court shall decide the question; but not adjournment shall be granted for the purpose of deciding the question, unless the Court, for reasons to be recorded, thinks fit to grant such adjournment.] [Inserted by the Code of Civil Procedure (Amendment) Act, 1976, Section 72, Section 74 (w.e.f. 1.2.1976).] [Explanation-An agreement or compromise which is void or voidable under the Indian Contract Act,1872 (9 of 1872), shall not be deemed to be lawful within the meaning of this rule;] [Inserted by the Code of Civil Procedure (Amendment) Act, 1976, Section 72, Section 74 (w.e.f. 1.2.1976).]

High Court Amendments-[Allahabad].-(1) In rule 3, between the words "or compromise" and "or where", insert the words "in writing duly signed by the parties"; and between the words "subject-matter of the suit" and the words "the Court", insert the words "and obtains an instrument in writing duly signed by the plaintiff". (2) At the end of the rule 3, add the following: "Provided that the provisions of this rule shall not apply to or in any way affect the provisions of Order XXXIV, rules 3,5 and 8. Explanation.-The expressions "agreement" and "compromise", include a joint statement of the parties concerned or their Counsel recorded by the Court, and the expression "instrument" includes a statement of the plaintiff or his Counsel recorded by the Court." -(w.e.f. 31-8-1974). [Delhi].-Same as that of Punjab. [Himachal Pradesh].-Same as that of Punjab. [Karnataka].-Renumber existing rule 3 as rule 3 (1) and add the following as sub-rule (2): "(2) Where any such agreement or compromise as is referred to in sub-rule (1) is placed before the Court by a party suing or defending in a representative capacity in a suit, instituted, conducted or defended under the provisions of rule 8 of Order 1 of this Code, the Court shall not proceed with the consideration of the same or to pass a decree in accordance therewith without first giving notice of the application for recording such agreement or compromise in the manner prescribed in sub-rule (1) of Rule 8 of Order 1 of this Code for giving notice of the institution of such suit. The expenses of giving such notice shall be borne by such party or parties as the Court may direct."-(R.O.C. No. 2526/1959, dated 9-2-1967). [Madras].-In the proviso to Rule 3, for the words "Provided that" substitute the following: "Provided that the subject-matter of the agreement, compromise or satisfaction, in so far as it differs from the subject-matter of the suit, is within the territorial and pecuniary jurisdiction of the Court concerned: Provided further that."-(w.e.f. 23-1-1981). [Punjab, Haryana and Chandigarh].-Add the following provisos to rule 3:- "Provided that the hearing of a suit shall proceed and no adjournment shall be granted in it for the purpose of deciding whether there has been any adjustment or satisfaction, unless the Court for reasons to be recorded in writing, thinks fit to grant such adjournment, and provided further that the judgment in the suit shall not be announced until the question of adjustment or satisfaction has been decided: Provided further that when an application is made by all the parties to the suit, either in writing or in open Court through their Counsel, that they wish to compromise the suit, the Court may fix a date on which the parties or their Counsel should appear and the compromise be recorded, but shall proceed to hear those witnesses in the suit who are already in attendance, unless for any other reason to be recorded in writing, it considers it impossible or undesirable to do so. If upon the date fixed no compromise has been recorded, no further adjournment shall be granted for this purpose, unless the Court, for reasons to be recorded in writing, considers it highly probable that the suit will be compromised on or before the date to which the Court proposes to adjourn the hearing."