When parties enter into a settlement and it is adopted by the court, it becomes part of the court's order. The breach of the settlement agreement amounts to contempt of court, and the court has the power to revoke the settlement in appropriate cases.

JUDGMENT :

The contempt petitioner is a cooperative bank limited. One Jinu Augustine had availed several loans from the above cooperative bank. There were two other transactions, in which Jinu Augustine along with one Aji Sebastian and one Varkey had also entered into loan transactions. Since default was committed by the subscribers, separate A.R.Cs were filed as ARC.Nos.1349 of 2010, 1343 of 2010, 362 of 2011, 1348 of 2010, 1345 of 2010 and 1342 of 2010 respectively. Awards were passed in favour of the cooperative society as against Jinu Augustine separately in few cases and in combination with Aji Sebastian in A.R.C.No.362 of 2011 and with Varkey in A.R.C.No.1348 of 2010. In execution of the award, E.P.Nos.11/2014, 7/2014, 14/2014, 15/2014, 9/2014, 8/2014 and 10/2014 were filed before the Munsiffs court, Muvattupuzha. In A.R.C.No.1345 of 2010 in E.P.No. 8 of 2014, the execution proceeding was dismissed and applications for condonation of delay and for restoration were filed. Those applications were allowed. In all other execution proceedings, warrants were issued in execution of the award after finding that the judgment debtors had sufficient means to discharge the decree debt. Challenging the order condoning delay, O.P.No.2062 of 2018 was filed by the concerned judgment debtors. Challenging the warrants issued in all other cases, the above CRPs were filed.

2. When the above CRPs came up for hearing along with the OP, this Court noticed that the dispute related to payment of money and in the light of the submission of the learned counsel for the petitioner that there was a chance of settlement if some concessions are allowed, parties were relegated for mediation. After mediation, it was reported that the matter was settled and a mediation settlement agreement signed by both parties covering all the CRPs and OPs was filed. It was agreed that the amount covered by three loans mentioned in the settlement would be paid on or before 25.03.2019. It was also agreed that the balance amount in other execution petitions would be paid on 30.06.2019. It was inter alia agreed that, if the judgment debtor fails to pay the amount as agreed, Bank will be free to proceed with the execution petitions. It was also agreed that the concessions given at the time of settlement would stand waived and the decree holder will be entitled to proceed with the executions ignoring the settlement arrived at. In other words, it was agreed that, in case of default, the decree holder will be entitled to execute the award as such, giving a go-bye to the settlement arrived at. It seems from the settlement that the total amount due from the judgment debtors was Rs.98,79,396/-. It also seems that, several concessions were given by the cooperative bank. An order was passed by this Court on 19.03.2019, recording the settlement. It was ordered that the parties were bound by the settlement and in case of default, parties would be entitled to execute the settlement in accordance with the terms of the settlement. It was also further directed that the parties were bound by the terms of the award and it will form part of the order. All the revisions and OP were accordingly disposed of.

3. Subsequently, in March 2020, these contempt petitions were filed by the cooperative bank contending that the judgment debtors have violated the terms of the settlement and the amount as agreed was not paid by them. It was stated that, the entire amount remains due and by committing wilful breach of the terms of the settlement, which was accepted by this Court, the judgment debtors have committed contempt of court.

4. Notices were issued to the respondents in the contempt cases to appear and show cause why contempt proceedings shall not be initiated against them. In reply to it, the respondent/judgment debtor has filed a detailed counter in contempt case No.1579 of 2020. An adoption memo was filed in all other contempt cases adopting the contentions set up in the above counter affidavit. The