Compromise how to be made.

(1) No suit, application or appeal pending before a court which relates to charitable or religious institution or endowment, shall be withdrawn or compromised by the trustee or other person in charge of the management of such institution or endowment except with the previous sanction of the Commissioner. (2) Where the Commissioner considers that any claim, demand, or cause of action for suing in respect of the affairs, funds, or properties of the charitable or a religious institution or endowment shall, in the interests of the institution or endowment be compromised without instituting or without continuing any suit or other legal proceeding and if the other party to such suit or other legal proceedings is willing to enter into a compromise under the terms and conditions which the Commissioner considers acceptable in the interest of the institution or endowment, the Commissioner may, for reasons to be recorded in writing pass an order directing the trustee or other person deferred to in sub-section (1) to enter into such compromise: Provided that the Commissioner shall pass an order after taking into consideration the recommendations of the committee of the three officers drawn from Endowments, Revenue and Law Department to be constituted for this purpose.