“Now this determination may be arrived in one of two
ways; either after contest by the Court coming to its
own conclusion on the materials placed before it, or on
the parties themselves agreeing to settle their
difference on certain lines and asking the Court to
adjudicate their respective rights and liabilities in
accordance with that settlement. In both cases the
Court has to pass orders. In one case the order is
based on the decision of the Court itself, and in the
other the Court, after being informed of the agreement
of the parties makes a formal adjudication on the
basis of the agreement. In both cases the court will
generally order the parties to carry out their respective
obligations. An adjudication may in some cases, be
purely declaratory; this will happen if a declaration be
sufficient to give the party having a right all the relief
he is in need of. If on the other hand, a declaration is
not enough, the Court will order the party, who has
infringed the right of another to restore that right to
the rightful party as found by the Court, or as
admitted by the other party. What the parties do in a
compromise of a suit is to adjust their rights and
liabilities outside the Court and then come and ask
the Court to recognize those rights and liabilities and
pass its formal expression of adjudication accordingly.
This is what is provided in O. 23, R. 3. The Court is
required to record the compromise, which thus really
takes the place of a judgment in a contested suit.”
AIR 1933 Patna 306
Source
2019 LHC 1994
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