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2023 Supreme(Del) 4259

IN THE HIGH COURT OF DELHI AT NEW DELHI
Tushar Rao Gedela, J.
Rajender Kumar – Appellant
Versus
Devender – Respondent
CM(M) 1159 of 2018 & CM APPL. 39101 of 2018
Decided On : 25-05-2023

Advocates appeared:
Mr. C.M. Grover and Ms. Payal Budhiraja, Advocates, for the Petitioner alongwith Petitioner.
None, for the Respondent.

Parties to a settlement agreement cannot retract from its terms once they have signed it voluntarily and affirmed it before the court.

Headnote:

Settlement Agreement - Mediation - Section 89 of CPC, 1908 - ILR 2012 (III) Del 133 - [Section 89 of CPC, 1908, ILR 2012 (III) Del 133]

Fact of the Case:

The petitioner filed a suit for recovery of an amount, and the parties reached a settlement agreement through mediation. However, the respondent later resiled from the terms of the settlement.

Finding of the Court:

The court directed the Trial Court to consider the issue of the respondent's retraction from the settlement agreement, emphasizing that once parties sign a settlement agreement voluntarily and affirm it before the court, they cannot retract from its terms.

Issues: The main issue was the respondent's retraction from the settlement agreement reached through mediation.

Ratio Decidendi: The court emphasized that parties to a settlement agreement cannot be permitted to frustrate its terms once they have signed it voluntarily and affirmed it before the court.

Final Decision: The petition was disposed of with the direction for the Trial Court to consider the issue of the respondent's retraction from the settlement agreement and decide it in accordance with the law.

JUDGMENT

Tushar Rao Gedela, J. (Oral)

[The proceeding has been conducted through Hybrid mode]

1. Despite number of efforts, the respondent has not appeared.

2. Learned counsel for the petitioner submits that despite the fact that a Whatsapp message was sent to the learned counsel for respondent and also personal information given to the respondent too, there is no appearance either of the counsel or of the respondent.

3. In such peculiar circumstances, this Court is constrained to proceed with the disposal of the petition. The same was also directed vide para no.5 (wrongly entered as para no.4) in the order dated 30.01.2023.

4. The case of the petitioner is that after having filed the suit, by virtue of the order dated 25.10.2017, the parties were referred to the Mediation for the purposes of settlement, if any, of the dispute between the parties.

5. It appears that with efforts of the Mediation Centre at Karkardooma Court, a settlement agreement was reached between the parties on 25.11.2017 which was reduced into writing. The said settlement agreement appears at page no. 36 of the present petition. For the purpose of convenience, the settlement agreement duly signed and executed by the parties is extracted hereunder:

    25.11.2017

    Present: Plaintiff Sh. Rajender Kumar in person with his friend Sh. Sikandar & counsel-Sh. Satish Verma.

    Defendant Sh. Devender in person with his son Sh. Gaurav.

    The present suit has been filed by the plaintiff for recovery of an amount of Rs. 10,00,000/- from the defendant and same has been received for mediation from the court of Sh. A.S. Jayanchandra, Ld. District & Sessions Judge (Shahdara), Karkardooma Courts, Delhi.

    Mediation process explained to the parties. Single & joint session held with the parties. Now, the parties have amicably and voluntarily settled all their disputes on the following terms and conditions:

    1. It is agreed between the parties that defendant Sh. Devender shall pay Rs. 10,00,000/- (Rs. Ten Lakh only) to plaintiff Sh. Rajender Kumar towards full and final settlement of all claims of the plaintiff arising out of the present suit.

    2. It is agreed between the parties that the payment of the settled amount shall be made by the defendant to the plaintiff by way of cash/DD/cheque in the court concerned by 30.3.2018.

    3. It is agreed between the parties that on receipt of the settled amount, as agreed herein above, the plaintiff shall withdraw the present suit from the court concerned.

    4. It is agreed between the parties that thereafter plaintiff shall not be left with any claim whatsoever against the defendant qua the present subject matter & shall not raise any such in future.

    5. It is agreed between the parties that the settlement has been arrived at between the parties out of their own freewill, without any pressure or coercion, without any threat from any comer & on taking legal advice.

    6. It is agreed between the parties that the contents of the settlement have been read over to the parties in vernacular & they are signing the same after fully understanding the same.

    7. It is agreed between the parties that they shall be bound by the settlement.

    RO&AC

    -sd/-

    (Rajender Kumar)

    Plaintiff

-sd/-
(Devender)
Defendant

    -sd/-

    (Sikandar)

    Friend

-sd/-
(Gaurav)
Son

-sd/-
(Satish Verma)
Counsel
-sd/-
(Kiran Bhardwaj)
Mediator/25.11.2017

    The said agreement has been arrived between the parties voluntarily in the mediation.

    The plaintiff shall be entitled to refund of court fees as per section 16 of Court Fees Act.

    Copy of the settlement be handed over to the parties free of cost. The settlement be sent to the court concerned. Parties to appear before the court concerned on 15.12.2017, the date already fixed.

-sd/-
(Kiran Bhardwaj)
Mediator/25.11.2017

6. From a perusal of the agreement, it is clear that the parties have arrived at a settlement which was recorded in writing and the parties, in acknowledgment thereto, have appended their signatures. The said signatures have been countersigned by the Mediator.

7. B

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