JUDGMENT :

SEN, J.

1. The controversy in this appeal by special leave centres around the words 'in writing and signed by the parties' added to Order XXIII Rule 3 of the Code of Civil Procedure, 1908 by the Code of Civil Procedure (Amendment) Act, 1976 and the precise question is whether when a settlement is arrived at between the parties in appeal before the Court, the compromise cannot be given effect to under Order XXIII, Rule 3 of the Code unless the terms of the compromise are embodied in an agreement in writing.

2. First as to the facts. The respondent herein Chatur Bhuj Goel, a Practising Advocate at Chandigarh first lodged a criminal complaint against Colonel Sukhdev Singh, father of the appellant, under section 420 of the Indian Penal Code 1860 after he had served the respondent with a notice dated July 11, 1979 forfeiting the amount of Rs. 40,000/- paid by him by way of earnest money, alleging that he was in breach of the contract dated June 4, 1979 entered into between Colonel Sukhdev Singh acting as guardian of the appellant, then a minor and the respondent for the sale of a residential house at 1577, Sector 18D, Chandigarh for a consideration of Rs. 2,85,000/-. In terms of