HIDAYAT ALI and others vs Mst. AZIZAN BIBI and others

This matter arises from a petition seeking leave to appeal before the Supreme Court of Pakistan, involving private parties who subsequently resolved their dispute entirely out of court. The core legal question addressed by the court was whether the pending judicial proceedings could be concluded on the basis of a lawful out-of-court compromise reached between the contesting parties. Holding that both learned counsel were fully satisfied regarding the genuineness and legality of the settlement, the court exercised its jurisdiction to resolve the matter accordingly. The court decided to convert the petition into an appeal and allow it in exact terms of the compromise agreement submitted by the parties, with no order as to costs. The key principle laid down is that the apex court may dispose of pending matters by converting petitions into appeals and granting relief in accordance with a genuine and lawful out-of-court settlement reached by the litigants.