Though you have not clarified, it appears that you are referring to Section 380 of the IPC which is theft in dwelling house, etc. Please note that this section is not compoundable under law. Therefore, it is not clear how settlement was done in this case and how settlement amount paid to the advocate, when this case could not be compromised. Secondly, if there was a compromise between the parties, there should also have been some written agreement or MOU signed between the parties.
In any case, now that the offence is pending in court and your friend is in custody for 22 days, you or his family would have to apply for bail for getting him out of the custody. You can inform the court about the settlement amount already paid in the case; it may have some positive impact on the grant of bail. If you have some complaint against the advocate concerned, you may first try to sort it out with him, and then, if needed, you may file a complaint with the State Bar Council.
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