RESPONDENT: UNION BANK OF INDIA AND ORS. DATE OF JUDGMENT20/09/1991 THOMMEN, T.K. (J) THOMMEN, T.K. (J) SAHAI, R.M. (J) CITATION: 1991 AIR 2234 1991 SCR Supl. (1) 187 1992 SCC (1) 31 JT 1991 (4) 15 1991 SCALE (2)625 ACT: Code of Civil Procedure, 1908Order XXIII Rule 3 Compromise Counsel's rolePre and Post 1976 CPC Amend mentObject of amendmentLegislative intention indicated. Code of Civil Procedure, 1908Order XXIII read with Order XXI, Rule 22Compromise entered into by the Counsel of defendant in High CourtCompromise decree on 18.6.1984 ExecutionNotice under Order XXI, Rule 22 to defendant made absolute on 23.1.1990Questioning the compromise after six years by chamber summon Effect of. HEADNOTE: Before this Court, the appellantdefendant challenged the judgment of the High Court which held that the decree made against the defendant 'in terms of a compromise in writing and signed by the counsel representing the parties was valid and binding on the parties, and that in the ab sence of any challenge against the order made under Order XXI, rule 23, Civil Procedure Code, allowing execution of the decree, the defendant was no longer entitled to resist execution by recourse to Chamber Summons. The appellant contended that the High Court was wrong in holding that, notwithstanding the amendment of 1976 insert ing the words 'in writing and signed by the parties', it was still sufficient if the terms of compromise were reduced to writing and signed by counsel representing the parties, and not necessarily by the parties in person, and that a decree based on a compromise not signed by the parties in person was a nullity and was incapable of execution. The respondents submitted that it was always under stood that the expression 'party' included his pleader in matters relating to appearance in court, and his counsel in the cause, therefore, had express or implied authority, unless specifically withdrawn or limited by the party, to represent him in court and do whatever was necessary in connection with the conduct of his suit including adjustment of the suit by agreement or compromises. 188 Dismissing the appeal, this Court, HELD:. 1. Counsel's role in entering into a compromise has been traditionally understood to be confined to matters within the scope of the suit. However, a compromise decree may incorporate not only matters failing within the subject matter of the suit, but also other matters which are collat eral to it. The position before the amendment in 1976 was that, in respect of the former, the decree was executable, but in respect of the latter, it was not executable, though admissible as judicial evidence of its contents. [199 CD] 2. After the amendment of 1976, a consent decree, is executable in terms thereof, even if it comprehends matters failing outside the subjectmatter of the suit, but concern ing the parties. [201 E] 3. The object of the amendment of Order XXIII, Rule 3, C.P.C. was to provide an appropriate remedy to expedite proceedings in Court. That object must be borne in mind by adopting a purposive construction of the amended provisions. The legislative intention being the speedy disposal of cases with a view to relieving the litigants and the Courts alike of the burden of mounting arrears, the word 'parties' must be so construed as to yield a beneficent result, so as to eliminate the mischief the legislature had in mind. [202 D E] 4. There is no reason to assume that the legislature intended to curtail the implied authority of counsel, en gaged in the thick of proceedings in court, to compromise or agree on matters relating to the parties, even if such matters exceed the subject matter of the suit. The relation ship of counsel and his party or the recognised agent and his principal is a matter of contract; and with the freedom of contract generally, the legislature does not interfere except when warranted by public policy, and the legislative intent is expressly made manifest There is no such declara tion of policy or indication of intent in the present case. The legislature has not evinced any intention to change the well recognised and universally acclaimed co