Did the surety contemplate when he executed the bond that the dispute pending between the debtor and the creditor may be compromised, or did be contemplate that the dispute would, and must be settled by the court and not compromised by the parties? If the terms of the bond indicate that the surety undertook the liability on the basis that the dispute would be decided on the merits by the court in invitium and would not be amicably settled, then the compromise of the dispute would discharge the liability of the surety (vide The Official Liquidators, The Travancore National & Quilon Bank Ltd. vs The Official Assignee of Madras,(1) Parvatibai vs Vinayak Balvant (2); Mahomedalli Ibrahimji vs Laxmibai, (3); Narsingh Mahton vs Nirpat Singh (4) and Muhammad Yusaf vs Ram Gobinda Ojha.