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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Corporate Warranties India Pvt. Ltd. - Appellant
Versus
Saluja Construction Company Limited - Respondent
CS(OS) 269 of 2020 & I.A. 5820 of 2021, 11060 of 2021 and 12913 of 2021
Decided On : 01-04-2022
Agreements reached through mediation are binding and enforceable if they are lawful and confirmed by the involved parties.
Headnote:(A) Code of Civil Procedure, 1908 - Order XXIII - Compromise and settlement - Suit filed for recovery of Rs.4,90,00,000/- with 15% interest - Mediation resulted in agreement dated 23.02.2022 for defendant to pay Rs.5,40,00,000/- in installments - Court finds settlement lawful and decrees suit per terms of agreement (Paras 2-7).
(B) Mediation - Enforceability of agreements - Agreement reached through mediation is binding if lawful and confirmed by parties - Court accepts undertaking of defendants for compliance. (Paras 4-6).
Facts of the case:
Plaintiff sought recovery of a significant sum due to contractual obligations, leading to the mediation process and subsequent agreement between the parties.
Findings of Court:
The Court decreed the suit for an amount and terms as stipulated in the settlement agreement, reinforcing the effectiveness of mediation in dispute resolution.
Issues: Core issues revolved around the legality and acceptance of the settlement agreement reached post-mediation and the terms of the decree.
Ratio Decidendi: The court reaffirmed that agreements arising from mediation are enforceable as long as they are lawful and agreed upon by all parties involved.
Result: The suit is decreed in favor of the plaintiff for Rs.5,40,00,000/- according to the settlement agreement.
| Table of Content |
|---|
| 1. plaintiff's claim for recovery. (Para 1 , 2) |
| 2. lawfulness and terms of settlement agreement. (Para 3 , 4 , 5 , 6) |
| 3. decree granted based on settlement. (Para 7 , 8 , 9) |
JUDGMENT
Sanjeev Sachdeva, J. (Oral)--Plaintiff has filed subject suit for recovery of Rs.4,90,00,000/- along with interest at the rate of 15% per annum.
2. During the pendency of the suit, parties were referred to mediation and settlement agreement dated 23.02.2022 has been entered into between the parties pursuant to the mediation proceedings.
3. Settlement agreement dated 23.02.2022 has been placed on record. I have perused the same and find the same to be lawful.
4. In terms of the settlement agreement defendants have agreed to pay a sum of Rs.5,40,00,000/- in installments. The period and amounts of the installments are referred to in the settlement agreement. Post dated cheques towards the installment amount have already been handed over. It is prayed that a decree be passed in terms of the settlement agreement.
5. Learned counsel appearing for the parties confirm the signatures of their respective clients and confirm the settlement agreement. The settlement agreement is marked exhibit C-1.
6. Learned counsel for the defendants undertake on behalf of the defendants that defendants shall duly abide by the terms of the settlement and undertake to pay the amount as agreed upon. The undertakings are accepted.
7. In view of the above, the suit is decreed in favour of the plaintiff and against the defendants in the sum of Rs.5,40,00,000/- in terms of the settlement agreement dated 23.02.2022 (exhibit C-1) which shall form part of the decree.
8. Decree sheet be prepared accordingly.
9. Since the settlement has been arrived at through the process of mediation, the Court fees paid on the plaint be returned to the plaintiff in accordance with law.
