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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
APL Apollo Tubes Limited - Appellant
Versus
Shapoorji Pallonji and Company Private Limited - Respondent
CS(COMM) 472 of 2021 & I.A. 5772 of 2022
Decided On : 13-04-2022
Settlement agreements executed through mediation are legally binding and can form the basis for a court decree, provided terms are lawful and mutually agreed upon by the parties.
Headnote:(A) Mediation - Settlement Agreement - Contracts Act - Recovery of Debt - Parties settled their disputes through mediation, executing a lawful settlement agreement on 03.03.2022, wherein plaintiff is to recover Rs.3,80,26,965/- in instalments with interest conditions stipulated. (Paras 2-6)
(B) Decree - Nature of Satisfaction - Court decreed the suit based on the settlement agreement, providing terms for payment and interest, with costs to be refunded. (Paras 7-8)
(C) Court Proceedings - Mediation Benefits - Suit is dismissed as settled, with no further proceedings required. (Para 9)
| Table of Content |
|---|
| 1. acknowledgment of suit and mediation (Para 1 , 2) |
| 2. confirmation of settlement agreement (Para 3) |
| 3. lawfulness and performance obligation of settlement (Para 4 , 5) |
| 4. decree based on settlement agreement (Para 6 , 7) |
| 5. refund of court fees and cancellation of future date (Para 8 , 9) |
JUDGMENT
Sanjeev Sachdeva, J. (Oral)--Plaintiff has filed the subject suit for recovery of a sum of Rs.3,97,97,779/-. Parties had already approached the Mediation Centre for a pre institution mediation.
2. Parties have settled their disputes and settlement agreement dated 03.03.2022 has been executed. The settlement agreement is signed by Mr. Surinder Mittal and Mr. Anil Goel on behalf of the defendants who are duly authorised by virtue of the resolution of the Board of Directors dated 03.01.2022.
3. Learned counsel for the parties confirm that the settlement agreement has been signed by the parties. The settlement agreement is exhibited as Exhibit C-1.
4. I have perused the terms of the settlement and find the same to be lawful.
5. Learned counsel for the parties under instructions undertake on behalf of the parties that they shall duly perform their respective obligations under the settlement agreement.
6. In terms of the settlement agreement, it is agreed that a decree for recovery of a sum of Rs.3,80,26,965/- be passed in favour of the plaintiff and against the defendants. The agreement provides for the payment of the said amount in instalments and also stipulates that in case instalments are not paid, initially simple interest @ 7% p.a shall be levied and thereafter interest @ 12% per annum shall be levied on the balance payment.
7. In view of the above, the suit is decreed in favour of the plaintiff in terms of the settlement agreement dated 03.03.2022 which shall form part of the decree.
8. Since the parties have settled their disputes through the process of mediation, the Court fees be refunded to the plaintiff in accordance with law.
9. Next date of 30.05.2022 before the Joint Registrar is cancelled.
