A compromise agreement that is voidable for fraud, undue influence, or coercion is a 'lawful agreement or compromise' within the meaning of Order 23, Rule 3 of the Civil Procedure Code and can be recorded by the court.

( 1 ) THIS is an application for recording certain terms of settlement arrived at between the plff. and deft. 1, on 22-7-1950, settling this suit as between them, on certain terms. The terms are contained in a document in writing signed by both the plff. and deft. 1.

( 2 ) THIS suit was filed on or about 6-7-1950, for a declaration that the business mentioned in the plaint was a partnership business, for a declaration that the Yugoslavia Cement business and sole agency were partnership business, and/or carried on for the benefit of the partnership, for a declaration that the business carried on by the limited companies mentioned in the plaint were also partnership business and/or carried on for the benefit of the partnership, for dissolution of the partnership, accounts, injunction and for other reliefs.

( 3 ) IT appears that some time in May 1950, the deft. 1 instituted criminal proceedings against the plff. before the Additional Chief Presidency Magistrate, Calcutta, under Section 420, Penal Code. The complaint was made on the ground that deft. 1 had paid the plff. a sum of Rs. 50,000/- by cheque, against a cheque issued, by the plff. for the identical sum of Rs. 50,000/ -. The cheque issued by deft, 1 was cashed, but the plff's. cheque was dishonoured. It further appears that bail was granted to the plff. for Rs. 10,000/-, which was subsequently increased to Rs. 25,000/ -.

( 4 ) ON July 21st, certain terms were arrived at between the parties and a receipt was given by the plff. for Rs. 40,000/ -. The parties, however, altered the terms arrived at on July 21st, on July 22nd, and on 22-7-1950, Messrs. T. Banerjee and Co. forwarded what is described as a "true copy of the terms of settlement signed by the parties" to Mr. Ahad, Solicitor for deft. 1. What is called a "true copy" appears to be a copy of the terms containing the original signatures of the parties. There must have been more than one copy with the original signatures of the parties.

( 5 ) IN the suit, an application was made on or about 11-7-1950, and an interim injunction has been passed. Thereafter, the motion appeared in the list for directions, and necessary directions were given for filing of affidavits. The suit and the motion both appeared in the list on several occasions, when attorneys for both the parties informed the Court that the suit and the motion had been settled and the terms of settlement would be filed in due course. Upon the terms having been arrived at, the criminal proceedings were withdrawn in terms thereof.

( 6 ) ON or about 23-1-1950, Mr. Ahad on behalf of deft. 1 wrote to the Registrar to list the suit and the motion for settlement. But the solicitors for the plff. informed the Registrar that there had been no concluded terms of settlement. Thereafter, this application was taken out for recording the terms of settlement.

( 7 ) THE criminal proceedings, as stated before, were under Section 420, Penal Code, which is a compoundable offence, and there is nothing against policy in agreeing to withdraw a complaint of this description.

( 8 ) THE plff. appears and opposes this application on the ground that although he had executed the terms, he was compelled to subscribe his signature thereto by exercise of undue influence, threats and pressure of criminal prosecution. He admits that he not only executed the terms but gave instructions to his attorneys to send a copy to the attorney for deft. 1 and to request learned counsel to file the terms. He says that the alleged terms were signed "in terrorem and fear. " Learned counsel on behalf of the plaintiff says that his client had no alternative' but to sign the terms, regard being had to the fact that a criminal action was hanging on his client's head, that there was a heavy amount of bail, that his claim in the partnership business was not being admitted and he was put to great trouble. It is, however, admitted that the terms were signed, that the criminal prosecution was withdraw