Settlements reached through Joint Memo in court are enforceable; failure to comply may lead to contempt proceedings.

JUDGMENT :

S. RACHAIAH, J.

1. Heard Shri Rishi S. Chugh, learned counsel for the appellant and Shri M. Vinod Kumar, learned counsel for the respondent.

2. Both learned counsels submit that the parties have settled the dispute amicably and filed a Joint Memo of even date. The joint memo is taken on record.

3. The appellant and the respondent are present and are identified by their respective counsels. The Joint Memo is duly signed by the appellant and his counsel and learned counsel for the respondent. The joint memo reads thus:

“The Respondent is still due and liable to pay a sum of Rs.37,00,000/- (Rupees Thirty Seven Lakhs Only) to the Appellant as on date and is desirous of honouring the same by duly acknowledging his outstanding dues lawfully owed to the Appellant herein. The Respondent has hence, now come forward and agreed to repay the outstanding amount to the Appellant in the interest of closing all impending litigations against the Appellant altogether.

That during the present proceedings, the Respondent has now approached the Appellant and has sought a final opportunity once again to settle all outstanding disputes between the parties and make good all outstanding debts in that regard. After due negotiations and deliberations, both the Appellant and the Respondent have arrived at a settlement as per the following terms and conditions.”

i. That the Respondent has promised to pay an amount of Rs.37,00,000/- (Rupees Thirty Seven Lakhs Only) to the Appellant, towards full and final settlement of all outstanding dues and liabilities and towards discharge of all debts, and the Appellant has agreed to accept the same.

ii. That the Respondent represents that he has paid a sum of Rs.10,12,500/- (Rupees Ten Lakhs Twelve Thousand and Five Hundred Only) towards judicial deposit in C.C.No.487 of 2014 before the XVth Addl. Chief Metropolitan magistrate at Bengaluru, vide Receipt No.1341 by way of DD.No.028737 dated 25.04.2016 and hereby seeks that the said amount be released in favour of the Appellant. The said judicial deposit amount shall accordingly be adjusted to the aforesaid outstanding dues owed to the Appellant, by way of an order/direction of this Hon’ble Court.

iii. That the Respondent represents that as a mode of payment of the balance amount i.e. Rs.26,87,500/- (Rupees Twenty Six Lakhs Eighty Seven Thousand and Five Hundred Only) will be made in tranches by way of issuing postdated cheques promising that the said cheques shall be positively encashed on their presentation since the Respondent hereby undertakes to maintain sufficient funds in his account on the concerned dates as detailed below.

iv. Further the Respondent also undertakes that none of the below stated cheques will be dishonoured towards the discharge of his debt and liability under this Joint Memo of Settlement. The Respondent further undertakes that in the event if any one of the cheques being dishonoured, the Appellant herein may at his option re-initiate and reopen or resume the present proceedings with no objections from the Respondent whatsoever in this regard.

v. That the Respondent has issued the following cheques in discharge of his debt and liability promising that he would ensure that all the cheques are honoured and encashed on their presentation without anyone of them being dishonoured under any circumstances or at any point in time as mentioned in the schedule hereunder:

vi. That it is agreed and made clear that in the event of any one of the cheques being dishonoured, the Appellant shall re-open the above proceedings