The main legal point established is the enforceability of a Settlement Agreement under Order XXIII Rule 3 of the Code of Civil Procedure, 1908, and the court's authority to pass a decree based on such agreement.

ORDER

Chandra Dhari Singh, J. (Oral)

I.A. 2529/2023 (Under Order XXIII Rule 3)

1. The instant application has been filed on behalf of the parties under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908 seeking the following reliefs:

"i) Take the present settlement application alongwith the Deed of Compromise/Settlement/MoU dated 6th January 2023 on record and pass a decree in terms of said Deed of Compromise/Settlement/MoU dated 6TH January 2023;

ii) Direct the registry to refund court fee paid on the plaint bearing CS (COMM) No 623 of 2019 in accordance with the provision of the section 16 of the Court Fees Act, 1870;

iii) Pass any further orders as this Hon'ble Court may deem fit and proper in the interest of justice."

2. It has been submitted on behalf of the parties that two separate suits bearing nos. CS(OS) 2418/2011 and CS(COMM) 623/2019 have been instituted on behalf of the plaintiff for recovery of Rs.2,28,36,940/(Rupees Two Crore Twenty Eight Lacs Thirty Six Thousand Nine Hundred and Forty Only) in toto.

3. It has been submitted on behalf of the parties that the matter has been mutually settled between the parties vide Settlement Agreement dated 6th January, 2023. The relevant terms of the said Settlement Agreement are reproduced hereunder:

"B. And Whereas NBCC and GRG have mutually decided and agreed to compromise and settle all claims filed in the aforestated cases and thus are entering into this Memorandum of Understanding (MoU), where in GRG has voluntarily agreed to pay an amount of Rs.15985858/- (Rs.One Crore Fifty Nine Lakhs Eighty-Five Thousand Eight Hundred and Fifty-Eight Only) to NBCC and NBCC has agreed to withdraw the afore stated pending cases and settle all the claims arising out of the subject matter thereof subject to receipt of aforesaid amounts.

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D. That the third and final installment would be released by GRG within 60 days of signing this compromise/settlement deed on the date of listing of Joint Application under Order 23 Rule 3 read with Section 151 of CPC for passing the compromise decree before the Hon'ble High Court of Delhi.

E. That GRG agrees and understands that the settlement shall attain finality and that the aforesaid pending cases would be withdrawn by NBCC only once GRG makes all the payments according to the time lines and payment plan prescribed hereinabove and in case of any unfortunate event like death or any calamity that may be fall upon any person/representative concerning GRG, the legal heirs would remain bound by the terms of this settlement.

F. That in the event of any default in payment by GRG as per the schedule at Clause C, any/all such amounts that may have been paid by GRG shall stand forfeited as a result of such default and NBCC shall be at liberty to continue with the aforementioned cases pending before the Hon'ble Delhi Court.

G. That the parties agree that they have mutually settled all their inter-se disputes and differences including the disputes pertaining to the subject matter of aforesaid Civil Suits/Cases subject however to the understanding between the parties as recorded in the preceding paras.

H. That each Party undertakes to abide by the terms of this settlement and also undertake not to initiate any legal action in future in respect to the matters pertaining to the Civil Suits/Cases as referred above since all matters pertaining to subject matter of the said Civil Suits are fully and finally settled subject however to the understanding between the parties as recorded in the preceding paras."

4. It has been submitted on behalf of the parties that in light of the settlement agreement, the defendant has consented to pay an amount of Rs.1,59,85,858 (Rupees One Crore Fifty Nine Lacs Eighty Five Thousand Eight Hundred and Fifty Eight Only) to the plaintiff. In consequence thereto, the matter shall be settled between the parties.

5. It has been further submitted that the defendant in pursuance to the Settlement Agreement dated 6th Jan