ORDER

Leave granted.

2. This appeal by special leave arises from the judgment and order dated January 10, 1997 passed by the Bombay High Court in Civil Revision Application No. 9/97. It is not in dispute that while the appeal was pending an application under Order XXIII, Rule 3, CPC was filed for recording the compromise. The appellate Court refused to record the compromise and on revision, it was dismissed. Thus, this appeal by special leave.

3. The compromise memo annexed as Annexure A at page 21 of the paper book records that "We, the undersigned Shri Harshan A. Mehta, Director of H. Choksey & Co. Pvt. Ltd. and Mr. Jayavantraj Punamiya, Director of M/s. Sundeep Plastics Pvt. Ltd. do hereby appoint Shri Mohanlal S. Mehta to sell 2 galas being No. D/8 and AB/14, situate at Nandanvan Co-operative Industrial Estate Ltd. at Thane." The High Court recorded the finding that it being a compromise contingent upon the parties appointing Shri Mohanlal S. Mehta as a mediator, it cannot be recorded under Order XXIII, Rule 3, CPC. Shri Sitaramaiah, learned senior counsel for the appellants, contends that once parties have agreed to refer the matter to a third party to settle their disputes, it c