Rule 3B of CPC : Rule 3B: No agreement or compromise to be entered in a representative suit without leave of Court.

Explanation using Example

Example 1:

A group of residents in a locality files a representative suit under Section 91 of the Code of Civil Procedure, 1908, against a factory for causing environmental pollution. The residents are represented by a few individuals who act on behalf of the entire group. During the proceedings, the factory offers a settlement to the representatives, proposing to install pollution control equipment and pay compensation to the affected residents. According to Rule 3B, the representatives cannot accept this settlement without the explicit permission of the Court. The Court will review the proposed agreement, notify all interested parties (i.e., the residents), and ensure that the settlement is fair and in the best interest of all affected individuals before granting leave for the agreement to be entered into.

Example 2:

A manager of an undivided Hindu family files a suit on behalf of the family members to reclaim ancestral property that was wrongfully sold. During the litigation, the opposing party offers a compromise, suggesting that they will return a portion of the property and pay a sum of money as compensation. The manager cannot accept this compromise without the Court's permission. The Court will notify all family members, consider their interests, and ensure that the compromise is equitable for all members of the undivided family before granting leave for the compromise to be accepted.

Example 3:

A group of consumers files a representative suit under Rule 8 of Order I against a company for selling defective products. The company proposes a settlement where they agree to replace the defective products and provide additional compensation. The representatives of the consumers cannot agree to this settlement without the Court's permission. The Court will notify all affected consumers, review the terms of the settlement, and ensure that it is fair and reasonable for all consumers involved before granting leave for the settlement to be accepted.

Example 4:

A public interest litigation (PIL) is filed by a group of activists under Section 92 of the Code of Civil Procedure, 1908, against a trust for mismanagement of funds. The trust offers a compromise, agreeing to restructure its management and return misappropriated funds. The activists cannot accept this compromise without the Court's permission. The Court will notify all interested parties, including beneficiaries of the trust, review the terms of the compromise, and ensure that it serves the best interest of all beneficiaries before granting leave for the compromise to be accepted.