The judgment emphasizes the sanctity of settlement agreements, the consequences of attempting to modify or evade them, and the principles related to lifting the corporate veil.

Manmohan Singh, J. (Oral)

1. The present execution petition has been filed by the decree holder under Order 21 Rule 10 of the Code of Civil Procedure praying that warrants of attachment and sale thereafter of the movable and immovable properties of the judgment debtor be issued in respect of the list of properties filed along with execution petition.

2. The brief facts are that the award was passed against the judgment debtor on 30th June, 2005. The judgment debtor filed OMP No. 415/2005 in this Court under Section 34 of the Arbitration and Conciliation, Act, 1996 (hereinafter referred to as “the Act”) which was dismissed by a detailed judgment dated 3rd July, 2008. Against the dismissal of the said petition, the judgment debtor filed an appeal being FAO (OS) No. 391/2008 which was also dismissed by the Division Bench of this Court on 6th February, 2009. The Special Leave to defend Petition (Civil) No. 20181 of 2009 filed by the judgment debtor was also dismissed by the Supreme Court on 26th April, 2010. The award is enforceable as decree under Section 36 of the Act.

3. When the execution was listed on 18th January, 2012, learned counsel appearing on behalf of the decree holder informed the Court that immovable property at Plot No.1016, Sector 4, Gurgaon, which was in the name of the judgment debtor has been transferred to M/s M.S.S. Constructions Pvt. Ltd. whose director is Sanjeev Uppal, brother of Mr.Deepak Uppal, after passing the award by the Arbitrator on 30th June, 2005, with a view to defeat the execution. The judgment debtor on that date was directed to file an affidavit with regard to the said transfer of plot. Mr.Deepak Uppal filed the affidavit dated 23rd March, 2012 admitting that the plot in question was sold to M/s M.S.S. Construction Pvt. Ltd. and the sale proceeds were deposited directly with the bank towards the part liquidation of the liability of the company. The bank in return released/handed over the property documents/papers of the said immovable property to Sh.Sanjeev Uppal, the Managing Director of M.S.S. Construction Pvt. Ltd.

4. The decree holder filed an application, being E.A. (OS) No.740/2012, for impleadment of Mr.Sanjeev Uppal. The Court issued the notice to M.S.S. Construction Pvt. Ltd. through its Director Mr.Sanjeev Uppal, 1016, Sector-4, Gurgaon, Haryana. On that date, Mr.Vinaik appeared on behalf of Uppal Engineering Company Pvt. Ltd. with Mr.Ritesh Khatri, Advocate. However, on the next date i.e. 2nd April, 2013, the same Ritesh Khatri, Adv. appeared on behalf of Mr.Sanjeev Uppal also. On 1st November, 2013, both the parties agreed before Court that they are willing to attempt a settlement before the Delhi High Court Mediation and Conciliation Centre. After few meetings, the Mediation Centre filed a settlement agreement dated 17th December, 2013 which is signed by both the parties. Mr.Deepak Uppal signed on behalf of the judgment debtor as well second party.

5. The terms and conditions of the settlement are mentioned in para 7 of the settlement agreement which reads as under:

“7. The following settlement has been arrived at between the parties hereto: -

i) That the parties have agreed that the Second Party shall pay a total sum of Rs. 1,10,00,000/- (Rupees One Crore and Ten Lacs only) towards the full and final settlement of all the claims and demands of the First Party against the Second Party arising out of the dispute in question. The said settlement amount shall be given by second party to the first party in the following manner:-

i) It is undertaken by the Second Party that he shall pay Rs. 20,00,000/- (Rupees Twenty Lacs Only) by Bank Draft drawn in faovur of Abhinav Cooperative Group Housing Soceity Ltd. to the first party by 15th March, 2014.

ii) It is also undertaken by the Second Party that balance amount of Rs. 90,00,000/- (Rupees Ninety Lacs Only) shall be paid by second party to first party in 12 equal monthly installments of Rs. 7,50,000/- (Rupees Seven Lacs Fifty T