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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Tantia Constructions Limited - Appellant
Versus
NBCC India Ltd. - Respondent
CS(COMM) 63 of 2021, I.A. 9332 of 2021
Decided On : 02-08-2021
| Table of Content |
|---|
| 1. settlement terms between parties (Para 1 , 2) |
| 2. mutual agreement on settlement terms (Para 3) |
| 3. decree based on settlement (Para 4) |
| 4. formal decree issuance (Para 5) |
| 5. court fee refund process (Para 6 , 7) |
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I.A. 9332/2021 (under Order XXIII, Rule 3 of the CPC, 1908, read with Section 151 of CPC, 1908)
1. This is an application under Order XXIII, Rule 3 of the Code of Civil Procedure, 1908 (CPC), for disposal of the present suit in terms of the settlement arrived at between the parties.
2. The terms of settlement have been set out in Paras 4 and 5 of the application, thus:
"4. That, during the pendency of this suit, the plaintiff and defendant have amicably settled and/or adjusted their said disputes and mutually agreed upon the following terms and conditions:
(a) It is agreed by the parties that, within a period of 15 days of the withdrawal of the present suit, the defendant shall release an amount of Rs.41,23,991/- against Security Deposit and an amount of Rs.84,60,006/- i.e. balance appearing in the plaintiff's ledger against RA bill/withheld amount. The details are as follows:
| Sl No | Particular | Amount |
| 1 | Balance S.D. Amount | Rs.41,23,991.00 |
| 2 | Withheld amount | Rs.30,53,851.00 |
| 3 | Balance against RA/Final Bills | Rs.54,06,155.00 |
| Total | Rs.1,25,83,997.00 |
(b) Additionally, an amount of Rs.5,56,740/- withheld towards GST shall also be released to be plaintiff by the defendant consequent however upon furnishing of receipts of deposit of GST by the plaintiff within 15 days of withdrawal of Civil Suit (Comm) No. 63 of 2021.
5. That in view of the above understanding, the plaintiff foregoes its balance claims as mentioned in paragraph 14 of the Plaint and the aforementioned settlement shall be considered as full and final settlement of any/all dues of the plaintiff arising out of the subject works."
3. Learned counsel for the parties agree that the parties would remain bound by the aforesaid terms of the settlement.
4. Nothing, therefore, survives for adjudication in the suit. The suit is accordingly decreed in terms of the afore-extracted terms of settlement between the parties, by which the parties shall remain bound.
5. The Registry is directed to draw up a decree sheet in accordance therewith.
6. As the disputes stand settled between the parties and the suit is of 2021 vintage, the plaintiff shall be entitled to refund of 50 percent of the court fees deposited by it.
7. In view of the above, all the pending applications are also disposed of.
Settlement terms agreed upon by parties can resolve litigation, requiring court endorsement and issuing of decrees consistent with those terms.
Parties may settle disputes leading to a decree under Order XXIII, Rule 3 of the CPC, provided the terms are clear and binding.
Mutual settlement of disputes allows parties to withdraw claims under Order XXIII Rule 3, leading to court decreeing the suit based on agreed terms.
Amicable settlement allows withdrawal of suit and extinguishment of claims upon mutual agreement between parties.
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 suc....
Enforcement of settlement terms under Order XXIII Rule 3 of CPC and decreeing of the suit in terms of the settlement
Court allows settlement between parties under Code of Civil Procedure, confirming binding terms of the Settlement Agreement and disposing of the suit as nothing remains for adjudication.
The court can decree a suit in terms of a settlement contained in undertaking affidavits filed by the parties, if nothing further remains for adjudication.
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