Both the parties should file an affidavit stating that they have arrived at an out of court settlement and compromised the matter on the following conditions which may be drawn in the compromise decree.
Order XXIII Rule 3 CPC pertaining to the compromise of the suit is as follows:
"Compromise of suit: Where it is proved to the satisfaction of the court that a suit has been adjusted wholly or in part by any lawful agreement or compromise, in writing and signed by the parties or where the defendant satisfies the plaintiff in respect of the whole or any part of the subject-matter of the suit, the Court shall order such agreement, compromise or satisfaction to be recorded and shall pass a decree in accordance therewith so far as it relates to the parties to the suit, whether or not "the subject-matter of the agreement, compromise or satisfaction is the same as the subject matter of the suit."
A compromise decree is not a decision of the Court, nor can it be said that a decision of the Court was implicit in it. It is the acceptance by the Court of something to which the parties agreed.
A consent decree (Compromise decree) does not stand on a higher footing than a contract between the parties. The Court always has the jurisdiction to set aside a consent decree upon any ground which will invalidate an agreement between the parties. In the absence of any such ground, the consent decree is binding on the parties.