Compromise, Settlement

Compromise, Settlement, the expression com-promise means settlement of difference by mutual concessions. It is an agreement reached by adjustment of conflicting or opposing claims by reciprocal modification of demands. As per Terms de la Ley, 'compromise is a mutual promise of two or more parties that are at controversy'. As per Bouvier it is 'an agreement between two or more persons, who, to avoid a law suit, amicably settle their differences, on such terms as they can agree upon'. The word 'compromise' implies some element of accommodation on each side. It is not apt to describe total surrender. A compromise is always bilateral and means mutual adjustment. 'Settlement' is termination of legal proceeding by mutual consent, State of Punjab v. Phulan Rani, (2004) 7 SCC 555 (557): AIR 2004 SC 4105. [Legal Services Authorities Act, 1987, s. 23(3)(5)]