Rule 7 of CPC : Rule 7: Court, if satisfied that agreement was executed in good faith, may pronounce judgment.

Explanation using Example

Example 1:

Scenario: Two business partners, Raj and Simran, have a dispute over the profit-sharing ratio in their partnership agreement. They decide to resolve the issue through a written agreement rather than going through a lengthy court trial. They draft an agreement stating that an independent auditor will review their accounts and determine the correct profit-sharing ratio.

Application of Rule 7:

1. Court Inquiry: The court examines the agreement to ensure it was executed in good faith by both Raj and Simran.
2. Substantial Interest: The court confirms that both parties have a substantial interest in resolving the profit-sharing dispute.
3. Fit to be Tried: The court deems the issue appropriate for resolution based on the agreement.

Outcome: The court re...

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