The court upheld a settlement agreement resolving all claims between parties, stipulating payment and release of funds as essential terms to discharge future liabilities.

ORDER (Oral)

(Video-Conferencing)

I.A. 9478/2021 (under Section 151 of CPC, 1908-for taking the settlement agreement on record)

1. This application seeks disposal of O.M.P. (COMM) 140/2021 on the basis of the settlement arrived at, between the parties, vide settlement agreement dated 30th July 2021, which has been placed on record. The terms of the settlement agreement may be extracted thus:

"1. That in full and final settlement of all and any claims that OK Play may have against Bibby, Bibby shall pay a sum of Rs.76,00,000/- (Rupees Seventy six lakhs only) to OK Play in the manner elucidated in the following paragraphs. The payment of this sum of money by Bibby to OK Play shall absolve Bibby and its constituents and sister companies and other entities under the same management of all liability whatsoever that it may have owed to OK Play, and all claims by OK Play against Bibby or its constituents and sister companies and entities under the same management shall stand satisfied in entirety by the payment of this sum of money.

2. That in order to effectuate this settlement, in the first instance the authorized signatories of the parties shall sign this Settlement Agreement. After the signing of the same, Bibby shall forthwith take steps for the drawing out cheques in favor of OK Play aggregating to the agreed sum of Rs.76,00,000/- (Rupees Seventy six lakhs only) (dated prior to the date of signing of the present settlement agreement). The lawyers representing Bibby will then draw out, and together with the lawyers representing OK Play, file a joint application before the Hon'ble High Court of Delhi, placing this settlement agreement on the record of O.M.P. (Comm) 140/2021. The details of the cheques in favor of OK Play will be mentioned in this application. The parties shall then seek, in terms of this settlement arrived at between them, a direction from the Hon'ble Court that the amount of Rs.44,42,637/- (Rupees Forty four lakhs, forty two thousand, six hundred and thirty seven only) that had been placed by Bibby in fixed deposit, with deposit effective date 10th April, 2018, and an interest rate of 6.25 % compounded quarterly, as well as an automatic renewal clause pursuant to order dated 26th March, 2018, passed by Shri Naresh Kumar Laka, ADJ - 03 (SE), District Courts, Saket, where the petition under Section 34 of the Arbitration and Conciliation Act was originally filed and pending, be released to Bibby together with such interest as may have accrued thereupon. It is also a term of this settlement that OK Play will not file/press any petition for enforcement of the arbitral awards in question passed in its favor.

3. That after the said direction mentioned in the preceding paragraph for release of the deposited amount together with such interest as may have accrued thereupon is issued by the Hon'ble High Court, the lawyers representing Bibby shall hand over the original cheques aggregating to the sum of Rs.76,00,000/- (Rupees Seventy six lakhs only) (dated prior to the date of signing of the present settlement agreement) to the lawyers representing OK Play upon the order containing the said direction being uploaded onto the website of the Hon'ble High Court, and becoming available to the parties. The present Settlement Agreement and all actions taken by the parties in pursuance thereto (including any orders passed by Hon'ble Delhi High Court or any other court) shall automatically stand vitiated without any further action of the parties if the cheques so handed over to OK Play are dishonored. The proceedings before the Hon'ble Delhi High Court in O.M.P. (Comm) 140/2021 and any other litigation being pursued/to be initiated by OK Play will automatically stand revived in the event of dishonor of cheque