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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 s. 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 the agreement, the respondent was to pay a further sum of Rs.1,35000() to the appellant's father Colonel Sukhdev Singh by July 10, 1979 when the said agreement of sale was to be registered and vacant possession of the house delivered to him, and the balance amount of Rs. 1,10,000 on or before January 31, 1980 when the deed of conveyance was to be executed. The dispute between the parties was that according to Colonel Sukhdev Singh, there was failure on the part of the respondent to pay the amount of Rs.1,35,000 and get the agreement registered, while the respondent alleged that he had already purchased a bank draft in the name of the appellant for Rs.1,35,000 on July 7, 1979 but the appellant's father did not turn up to receive the same. The respondent met him at his residence at Chandigarh on the morning of July 16, 1979 when it was agreed that they would meet in the District Court precincts later in the day for the purpose of registration of the agreement, but again the appellant's father did not turn up. Although the learned Additional Chief Judicial Magistrate by order dated October 31, 1979 dismissed the complaint holding that the dispute was of a civil nature and no process could issue on the complaint, a learned Single Judge of the High Court by his order dated February 11, 1980 set aside the order of the learned Additional Chief Judicial Magistrate holding that the facts brought out clearly warranted an inference of dishonest intention on the part of Colonel Sukhdev Singh and accordingly directed him to proceed with the trial according to law. Aggrieved, Colonel Sukhdev Singh came up in appeal to this Court by special leave.

This Court by its order in Criminal Appeal No. 595/80 dated September 2, 1980 reversed the judgment of the High Court on the ground that the dispute was purely of a civil nature and the criminal 13 process could not have been employed for the purpose of coercing the appellant's guardian Colonel Sukhdev Singh to specifically perform the contract. It was directed that Colonel Sukhdev Singh should return the earnest money of Rs.40,000 to the respondent on or before October 5, 1980 and in the meanwhile, the respondent was at liberty to file a suit for specific performance of the contract, if so advised. It was observed that the return of the said amount of Rs.40,000 by Colonel Sukhdev Singh would be without prejudice to the rights and contentions of the parties, including the right of the respondent to claim specific performance of the contract, if he was in law otherwise so entitled. Pursuant thereto, the appellant's guardian Colonel Sukhdev Singh refunded the amount of Rs.40,000 to the respondent. On October 3, 1980 the respondent instituted the suit in the Court of the District Judge, Chandigarh, out of which this appeal arises, for specific performance of the contract and, in the alternative, claimed Rs.2,50,000 by way of damages. Both the learned District Judge as well as a learned Single Judge on a consideration of the evidence came to the conclusion that the breach of contract was on the part of the appellant's guardian Colonel Sukhdev Singh and not on the part of the respondent and accordingly decreed the suit for specific performance. Thereupon, the appellant preferred an appeal under cl. 10 of the Letters Patent.

The hearing of the Letters Patent Appeal commenced before a Division Bench on January 14, 1987 and continued for three days. On January 16, 1987, the appellant's counsel had not concluded and there fore the hearing was adjourned to January 28, 1987. On that date, after the appellant's counsel had addressed the Court for a while, the parties took time to explore the possibility of a settlement. At the resumed hearing later in the day, the appellant's father Colonel Sukhdev Singh made a statement to the effect:

The above statement was duly endorsed by Shri V.K. Sharma, learned counsel appearing for the appellant and stated: B "The appellant makes an offer that in full and final settlement of the dispute between the parties, the appellant Gurpreet Singh in his personal capacity or through his father Colonel Sukhdev Singh shall pay Rs.2,25,000 to the respondent on 17.3.87 by a bank draft payable at Chandigarh, if the respondent agrees to the Letters Patent Appeal No. 734 of 1983 being allowed and that in the event of non-payment of the amount on the stipulated date, the said appeal shall stand dismissed and the appellant shall have no right to file an appeal in the Supreme Court." The respondent Chatur Bhuj Goel who, as already stated, is a practising advocate, was respondent by Shri Bhagirath Dass, a senior advocate practising at Chandigarh. Apparently, the respondent on mature deliberation made the following statement in the presence of his counsel "I accept the offer made by Colonel Sukhdev Singh and Shri V.K. Sharma, counsel for the appellant Gurpreet Singh. ' Thereupon, the learned Judges adjourned the appeal to March 17, 1987 i.e. the date on which the payment of Rs.2,25,000 was to be made. The aforesaid statements form part of the proceedings of the Court. Admittedly, the compromise was not reduced in writing and signed by the parties. Taking advantage of this fact, the respondent on February 9, 1987 made an application by which he tried to resile from the compromise stating: