MUHAMMAD AALAM vs CHIRAGH DIN
This matter originated as a petition for leave to appeal filed by a plaintiff in a civil suit concerning a declaration and permanent injunction. The core legal question before the Supreme Court of Pakistan was whether the parties could settle the dispute through an out-of-court compromise at the appellate stage and whether such a compromise could be formally recorded and made part of the court's order. Upon representation by learned counsel for both parties that a genuine compromise deed had been executed and that no legal impediments existed to its implementation, the Court accepted the compromise. The Court held that the petition for leave to appeal should be converted into an appeal and disposed of in accordance with the terms of the compromise deed. The key principle laid down is that the Supreme Court possesses the authority to record and give effect to a compromise reached between parties during appellate proceedings, thereby disposing of the matter in terms of the settlement, provided the compromise is verified as genuine and legally permissible.
- Can a petition for leave to appeal be converted into an appeal to give effect to a compromise between parties?
- Does the Supreme Court have the authority to dispose of a matter in terms of a compromise deed reached between parties during appellate proceedings?
ORDER
1. ' MUHAMMAD AFZAL ZULLAH, J.--In this leave to appeal petition filed by a plaintiff in a suit for declaration and permanent injunction, according to learned counsel appearing for the parties, the latter have settled the matter out of Court and have also drawn a compromise deed.
2. The learned counsel further stated that they have satisfied themselves that the compromise is genuine and that there is no impediment in its being acted upon. The compromise is recorded and made part of this order in the form of its photostat copy as follows:-- [Urdu version omitted] ' The aforerecorded compromise in the above circumstances is accepted. This petition is converted into appeal and the same is disposed of in terms of said compromise. There shall be no order as to costs.
3. Parties compromised.