IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Sangeeta Bahl - Appellant
Versus
Surindra Mahajan & Ors. - Respondents
Civil Suit (OS) No. 613 of 2019, Miscellaneous Application No. 16547 of 2019, 4753 of 2020, 10794, 10795 of 2021
Decided On : 13-09-2021
Settlement - Property Dispute - Code of Civil Procedure, 1908 - Order XXXIII Rule 3
Fact of the Case:
The parties reached a settlement agreement regarding the sale of a property and distribution of proceeds. The court decreed the suit in terms of the settlement agreement.
Finding of the Court:
The court found that the disputes between the parties were settled and decreed the suit accordingly.
Issues: Settlement agreement, reckoning of the period for property sale
Ratio Decidendi: The court decreed the suit in terms of the settlement agreement reached by the parties.
Final Decision: The suit stands decreed in terms of the settlement agreement, and the period for property sale was reckoned from the date of the agreement.
JUDGMENT
C. Hari Shankar, J. - The disputes between the parties stand settled and IA 10794/2021 has been filed under Order XXXIII Rule 3 of the Code of Civil Procedure, 1908.
2. The terms of settlement, as enumerated in para 5 of the application, read thus:
"5. That now this settlement is being recorded between the parties hereto as under:
A. The parties hereto confirm and declare that they have voluntarily and of their own free will and volition and without any pressure or coercion from any corner whatsoever arrived at the settlement (Memorandum of Understanding) (for 'Short "MOU").
B. That it has been decided between the parties herein that, Defendant no. 2 undertakes to sell the property no. B-127, Nirman Vihar, Delhi-110092 (immovable property in question) in open market, within a period of eighteen (18) months from the date of recording of statement of the settlement before this Hon'ble Court and further undertakes to pay to the Plaintiff and the Defendant No. 3 their respective share stated herein below, out of the sale of referred immovable property in question. It has been further agreed between the parties that without going into the merits of the case the Defendant No. 2 shall continue to be owner only for sale of immovable property in question.
C. That apart from Defendant no. 2, Sh. Rohit Mahajan, the Plaintiff and Defendant no. 3 (Smt. Sangeeta Bahl, and Smt. Anita Verma) respectively shall also make endeavor to dispose off/sell the "Property in Question" in open market within the aforesaid period of eighteen months and from out of the entire sale proceeds received (whatsoever) by the Defendant No. 2, he shall pay an amount of Rs.50,00,000/-(Fifty Lakhs Rupees Only) each to the Plaintiff and the Defendant No. 3 Mrs. Sangeeta Bahl and Mrs. Anita Verma as a settlement amount towards full and final settlement of the claim as raised by the Plaintiff in this Civil Suit pending before this Hon'ble Court qua the entire built up freehold Property bearing No. B-127, Nirman Vihar, Delhi-110092 (Property in Question).
D. That it has been observed by the parties herein that the original title documents (Conveyance Deed) of the Property in Question is untraceable, and it is believed that either it is lost somewhere or got kept at an obscure place. However, the same is not in the power and possession of any of the Parties to the present suit. It is, however, stated by the Defendant No. 2 that he has already lodged a NCR report with Delhi Police regarding the loss of the said Conveyance Deed. It is agreed between the parties herein, that in case, the original documents are found or recovered by any of the parties herein post disposing off the Property in Question, the same shall immediately be handed over to the Defendant No. 2 and not to the subsequent purchaser of the Property in Question.
E. That upon receipt of their share as stated herein above, the Plaintiff and the Defendant No. 3 shall be left with no right/ concern/ authority or interest to the value of the sale amount received by the Defendant No. 2 post sale of the Property in Question, and the claim/interest of the Plaintiff and the Defendant No. 3 shall only be confined/restricted to the agreed amount of Rs.50,00,000/- (Rupees Fifty Lakhs only) payable to each of them and as agreed hereinabove.
F. That the second party Sh. Rohit Mahajan, shall also pay an amount of Rs. 15,00,000/- (Fifteen Lakhs Only) to the First Party Smt. Surindra Mahajan, post selling "property in Question", and out of the entire sale proceeds received (whatsoever),as a token of honor being she the family head. However, the First Party shall be at liberty to appoint any person of her choice to be her nominee in her Bank Accounts.
G. That in terms of the settlement arrived at herein and as also recorded in the annexed Memo of Understanding, the Plaintiff and the Defendant No. 3 and/or their respective legal heirs shall be left with no right, title, concern whatsoever in any manner, with respect to the Pro
Courts will decree suits in accordance with settlement agreements reached by the parties.
A voluntary settlement agreement between parties in a civil suit that clarifies property sale terms and releases further claims is enforceable and binding.
Enforcement of settlement agreements in property disputes.
Settlement agreements under Section 89 CPC must be honored if they meet legal requirements.
The court has the discretion to permit parties to settle their disputes in the interest of justice, and a compromise/settlement agreement can be allowed if found to be legal.
The court upheld the legality of a settlement agreement between parties in a civil dispute, allowing the appeal to be resolved without further litigation.
A settlement agreement under Order XXIII Rule 3 CPC is binding when entered voluntarily without coercion, leading to the disposal of the suit based on mutual acknowledgments of rights.
Settlement agreements reached through mediation are binding and enforceable, with clear obligations for parties regarding cooperation and compliance to terms without oral alterations.
A settlement deed executed without authority by a deceased father, having only limited rights over property, is null and void, confirming equal shares for all heirs under the Hindu Succession Act.
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