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2025 Supreme(Online)(Del) 4135
IN THE HIGH COURT OF DELHI AT NEW DELHI
Mini Pushkarna, J
BASANT PROJECTS PRIVATE LIMITED – Appellant
Versus
TATA POWER DELHI DISTRIBUTION LIMITED – Respondent
W.P.(C) 6927/2024
For the Appellants/Petitioners: Mr. Rajiv Ranjan Mishra, Ms. Surachi Yadav
For the Respondents: Mr. Manish Srivastav, Mr. Moksh Arora, Mr. Ankit Bhushan, Mr. Amit Singh
Settlement agreements are binding and enforceable, requiring compliance to terms mutually agreed upon by parties.
Headnote:(A) Settlement Agreements - Validity and enforceability of agreements between parties - Parties agreed on development costs and execution timelines - Specific terms regarding electricity connections and responsibilities stated - Writ petition withdrawn as all disputes settled. (Paras 1-10)
(B) Performance Obligations - Parties expected to comply with conditions of agreement to actualize benefits under DERC Supply Code Guidelines - Force majeure conditions for extension are specified. (Paras 4-5)
(C) Binding Nature - Parties bound by settlement, no disputes to arise post-agreement concerning the terms. (Paras 8-9)
Facts of the case:
Petitioner and Respondent entered into a settlement regarding costs and obligations related to electricity provision for the project's completion.
Findings of Court:
Both parties are to adhere to the settlement terms for expedited project execution.
Issues: The primary issue was whether the terms of the settlement sufficiently resolved all disputes raised in the writ petition.
Ratio Decidendi: The court held that the settlement agreement outlined clear and binding terms, requiring compliance, hence disposing of the writ petition.
Result: Writ Petition disposed of.
| Table of Content |
|---|
| 1. settlement agreement outlines obligations and costs. (Para 1 , 4) |
| 2. court recognizes binding nature of settlement and obligations. (Para 2 , 3 , 5 , 8) |
O R D E R
% 04.07.2025
1. Learned counsels appearing for the parties have jointly handed over copy of the Settlement Agreement dated 26th May, 2025 and submit that the present petition can be disposed of, in terms thereof.
3. The settlement terms as contained in the Settlement Agreement dated
[Rupees Eighteen Crore One Lac Eighty Seven Thousand Eight Hundred and Seventy Seven Only] is only an estimate of energization cost to be incurred and shall be subject to reconciliation of final accounts upon completion of the abovesaid project execution work.
2. It is specifically agreed by the Petitioner that the petitioner shall provide layout of the Project, architectural drawings, building plan, appropriate land for installation of the sub station etc., pre execution of project and relay setting and protection philosophy, EI NOC, Lift safety certificate, Fire NOC post completion of project execution at customer end for Tata Power-DDL to energise the Project within timelines as per DERC Supply Code Guidelines 2017 from the date of execution of the present agreement. Any delay shall increase the overall completion timelines.
3. As part of present settlement and as an interim arrangement, the Respondent has already provided 600 KVA electricity connections on HT [Hereinafter referred to as the "HT Connection"] to the Petitioner.
4. It is agreed between parties that subject to compliance of the requirements above in Clause 2, commercial formalities as contemplated under DERC [Supply Code and Performance Standards) Regulation, 2017 by the Petitioner for grant of EHT electricity connection, respondent shall complete the project execution and provide EHT electricity connection of 7500 KVA at 33 KV for the Amaryllis Project as per DERC Supply Code Guidelines 2017.
5. In event of occurrence of force majeure events such as implementation of GRAP, statutory restrictions, delay in permission for right of way etc. by concerned statutory authority etc., the period as mentioned in Clause 4 above shall be extended automatically to the extent till such force majeure event exists.
6. It is agreed between parties that upon installation of above said EHT Electricity Connection, the above said interim HT connection of 600 KVA and all equipments installed for such HT connection shall be disconnected, dismentalled and removed at the cost of the Petitioner.
7. It is agreed by the Petitioner that all the disputes or grievances as raised by the Petitioner in Writ Petition being W.P.(C) No.6927 of 2024 stands amicably resolved and settled. Hence, the Petitioner agrees to withdraw Writ Petition being W.P.(C) No. 6927 of 2024 within a period of 7 [seven] days from the date of execution of the present agreement.
8. Parties to the present agreement, represent and warrant to each other that it has the authority and capacity to enter into present Settlement Agreement and present Settlement Agreement constitutes the valid and binding obligation of such party and enforceable against it in accordance with its terms.
9. The Parties agree to be bound by the terms of the present Settlement Agreement. The parties further agree and undertake that they shall not resile from or raise any dispute regarding this Settlement Agreement in present or future.
10. The Parties agree that they have arrived at the present Settlement out of their own free will and desire and without any pressure, fraud
