138. Agreement or compromise not to be confirmed-When illegal.
(1)Notwithstanding anything contained in Rule 3 of Order XXIII in the Schedule I to the Code of Civil Procedure, 1908, if any suit between landlord and tenant as such is wholly or partly adjusted by agreement or compromise, the Court shall not order an agreement or compromise to be recorded, and shall not pass a decree in accordance with such agreement or compromise, unless it is satisfied, for reasons to be recorded in the writing, that the terms of such agreement or compromise are such that, if embodied in a contract, they could be enforced under this Act.(2)When the terms of any agreement or compromise are such as might unfairly or inequitably affect the rights of third parties, the Court shall not pass a decree in accordance with such agreement or compromise unless and until it is satisfied by evidence that the statements made by parties thereto are correct.Illustration.-A, a proprietor agrees the B, this tenant, shall be recorded as an occupancy raiyat. This affects the rights of the tenant of it. The Court must under this sub-section enquire whether B is a permanent tenure-holder, jotedar or a raiyat as defined in Section 6. If the Court finds on the evidence that B is a raiyat, it may pass a decree in accordance with the agreement but shall not do so if it finds that B is a permanent tenure-holder or jotedar.(3)A decree passed in accordance with any lawful agreement, compromise or satisfaction shall be final, so far as it relates to so much of the subject-matter of the suit as is dealt with by such agreement, compromise of satisfaction.
