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2026 Supreme(SC) 698

SUPREME COURT OF INDIA
SATISH CHANDRA SHARMA, SANJEEV SACHDEVA, JJ.
Vijay Singh (D) By Lrs. Etc. – Appellant
Versus
Vidya Dhar Etc. – Respondents
Civil Appeal Nos. 3464-3467 of 2015
Decided On : 10-06-2026

Advocates appeared:
For the Appellant(s) : Mr. Sanjay Jain, AOR Mr. Parveen Kumar Aggarwal, Adv. Mr. Piyush Biswas, Adv.
For the Respondent(s): Mr. Rishabh Dheer, AOR Ms. Aishwarya Singh, Adv. Mr. Sarthak Bhardwaj, Adv. Mr. Prateek Srivastava, Adv.

Mediation-led settlement agreements, when voluntarily accepted by all involved parties and submitted to the court, provide a binding basis for a formal decree, effectively concluding long-standing litigation and providing a permanent, amicable resolution to multi-party property disputes.

Headnote:(A) Civil Procedure - Mediation - Settlement of dispute - Long-standing property dispute resolved through mediation - Court-referred mediation leads to amicable settlement between parties - Settlement agreement signed by all parties and counsel - Court modifies decree in terms of settlement agreement and site plans - Settlement binding on all parties. (Paras 1, 2, and 3)

Facts of the case:
A property litigation spanning five decades involving numerous parties was referred for mediation to achieve an amicable resolution. A consensus was reached through a formal settlement agreement and appended site plans, ensuring the partition and distribution of property shares among all involved parties.

Findings of Court:
The court observed that the settlement was reached voluntarily without coercion or undue influence. The settlement agreement and site plans were accepted as binding, forming the basis for a modified decree to definitively conclude the protracted litigation.

Issues: The main question was whether a mediation-based settlement agreement involving multiple stakeholders could form the binding framework for a judicial decree to resolve a long-standing property dispute.

Ratio Decidendi: Consensual settlement agreements, when voluntarily signed by all parties and their representatives, serve as a final and binding foundation for a judicial decree, effectively resolving complex and historic property disputes.

Result: Appeals disposed of in terms of the settlement agreement and site plans.

Table of Content
1. settlement resolution terminates long-standing litigation. (Para 1 , 2)
2. court validates and adopts mediation-led decree. (Para 3 , 4 , 5)

ORDER

1. The present civil appeals are arising out of the judgment dated 12.11.2013 passed by the High Court of Punjab & Haryana at Chandigarh in Tara Chand (D) by LRs. & Ors. v. Vidya Dhar & Anr. The dispute involved in the matter was a five decade old dispute and as many as there are 39 parties to the dispute. This Court in order to resolve the dispute amicably has referred the matter for mediation and finally a mediation report dated 09.01.2026 has been submitted reflecting that the settlement has been arrived at between 39 persons who are parties to the present litigation.

2. The parties have been allotted respective shares in the property which is subject matter of the litigation and a Settlement Agreement dated 07.01.2026 has been arrived at between the parties. The Settlement Agreement has been signed by the parties as well as by the respective counsels and the same is annexed herewith as Annexure-A. The parties to the dispute have been allotted shares as per the Settlement Agreement and each of them has voluntarily accepted the Settlement Agreement without any coercion and undue influence. In order to ensure that the individuals are placed in possession of the respective shares, copies of two Site Plans have also been filed along with I.A. No. 72997 of 2026 and the same are annexed herewith as Annexure-B.

3. In the light of the settlement arrived at between the parties, the lis has come to an end. Accordingly, the decree passed by the second Appellate Court is modified in terms of the Settlement Agreement dated 07.01.2026 and in terms of the Site Plans. The Settlement Agreement arrived at between the parties shall be binding upon the parties and all the Civil Appeals stand disposed of in terms of the Settlement Agreement (Annexure-A) and the Site Plans (Annexure-B). A decree shall be drawn, accordingly. The Settlement Agreement (Annexure-A) and the Site Plans (Annexure-B) shall form part of the decree.

4. This Court also appreciates the efforts on the part of Ms. Manjula Gupta, Mediator as well as Ms. Sasmita Tripathy and Mrs. Dipa Dixit, the co-Mediators in assisting the parties to resolve their disputes amicably. It was their hard work and persuasive skill which has resulted in positive results; a litigation which was going on between the parties for the last 50 years has come to an end amicably.

5. Pending application(s), if any, shall also stand disposed of.

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