New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Pending proceedings in a representative suit, the

    dispute is settled between plaintiff and defendants. They jointly filed an application to record settlement which was allowed. Suit was decreed in terms of the settlement. Is there any procedural irregularity?
    A No Correct Answer Incorrect Answer
    B Yes. Court ought to have conducted an enquiry about the genuineness of settlement. Correct Answer Incorrect Answer
    C No. Court could have granted leave to settle, being a representative suit. Correct Answer Incorrect Answer
    D Yes. Court cannot grant permission without following due procedure, being a representative suit. Correct Answer Incorrect Answer

    Solution

    Order XXIII Rule 3B discusses about the procedural requirement in representative suit. No agreement or compromise to be entered in a representative suit without leave of Court.—(1) No agreement or compromise in a representative suit shall be entered into without the leave of the Court expressly recorded in the proceedings; and any such agreement or compromise entered into without the leave of the Court as recorded shall be void. (2) Below granting such leave, the Court shall give notice in such manner as it may think fit to such persons is as may appear to it to be interested in the suit. 

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