Chanbasappa Gurushantappa Hiremath vs Baslingayya Gokurnaya Hiremath on 14 April, 1927
6. If an agreement to abide by the decision of an arbitrator can be held to be a compromise, the section is clearly applicable. It has been suggested that a mere agreement to be bound by a future award is not a compromise, whereas an agreement to accept an award that has been made is a compromise. It is difficult to see on what principle parties who agree to accept a certain fixed sum in satisfaction of a claim can be said to compromise that claim, whereas if they agree to accept a sum which is to be fixed by some one else, that does not amount to a compromise. The meaning of the word "compromise" has been elaborately discussed by Martin, C.J., in Chanbasappa v. Baslingayya (1927) I.L.R. 51 B. 908 : 29 Bom. L.R. 1254 (F.B.) and, with respect, I entirely agree with him that the agreement to abide by the decision of an arbitrator is a compromise of the claim.