A writ petition was filed against the award passed by the District Judge in a land acquisition case. High Court, having regard to the fact that acquisition proceedings had remained pending for an inordinately long period of time and land losers had not received compensation amounts within a reasonable or statutorily contemplated timeframe, referred the matter for mediation. Thereafter, parties arrived at an amicable and mutually acceptable settlement, resolving disputes which formed the subject matter of instant proceedings. Court held that the Mediation Agreement recorded herein would form part of said order and would be treated as a lawful settlement between the parties within the meaning of section 89, read with rule 3 of order 23. Further, compensation awarded on account of compulsory acquisition of land was not subject to deduction of tax at source under the Income-tax Act, 1961. Accordingly, all payments made pursuant to the Mediation Agreement, whether to joint accounts or individual accounts, shall be effected without any deduction of tax at source.