A court may record a compromise between parties filed under Order XXIII Rule 3 CPC if it finds the terms lawful, voluntary, and sufficient to resolve the underlying dispute, thereby warranting the passage of a decree in those terms.

O R D E R

I.A. 131/2026 (u/O XXIII Rule 3 CPC)

1. This is an application under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908 filed jointly on behalf of plaintiff and defendant no.1, praying that the settlement terms be taken on record and a decree be drawn up in terms of para 6 of the said application. For the purpose of convenience, the settlement terms as enumerated in para 6 of the application are extracted hereunder:

“6. In light of the observations of this Hon'ble Court and pursuant to the said discussions the Plaintiff and Defendant No. 1 have arrived at a consensus and mutually resolved the disputes on the following terms and conditions:

(i) The Plaintiff agrees to permit Defendant No. 1 to use the amended design, as approved by the Hon'ble Single Judge in the order dated 23.01.2024, strictly in good faith and considering the prior business relationship between the parties. It is expressly agreed that such usage shall be subject to the Defendant No. 1 obtaining a written permission from the Plaintiff. Further to this, the Defendant No. 1 has also obtained registration for the amended design, before the Design Office Kolkata, under the Design Application No. 422807-001 (Dated 10.07.2024). Further to this, the Plaintiff agrees to the fact that, the Plaintiff will not object/oppose the amended design of the Defendant, which is/will be used by the Defendant No. 1, under the written permission from the Plaintiff. The said design has been reproduced below:

(ii) Any use of the design by Defendant No. 1 without Written permission shall be deemed unauthorised and shall constitute a breach of these consent terms, entitling the Plaintiff to seek appropriate legal remedies.

(iii) Defendant No. 1 undertakes not to use, manufacture, deal, advertise or promote in any manner with the Design which was restrained under the Ex-Parte Order dated 17.10.2023 without the prior written consent of the Plaintiff, as identified in the expert report and interim order passed by this Hon'ble Court.

(iv) Defendant No. 1 further undertake not to alter, modify, or amend the approved/amended design (Current Ongoing version) in any manner without the prior written consent of the Plaintiff. v. Defendant No. 1 acknowledges and recognizes the Plaintiffs exclusive ownership, title, statutory rights, proprietary rights, and common law rights over the Registered Design No. 355571-001.

(vi) Defendant No. 1 undertakes that it shall not, either directly or indirectly, challenge the validity of Registered Design No. 355571-001 at any time hereinafter.

(vii) The Plaintiff, in good faith and in the interest of an amicable resolution, waives its claim for damages and cost as originally prayed for in the suit.

(viii) Defendant No. 1 has no objection if the Hon'ble Court refund the court fee and stamp duty paid by the Plaintiff at the time of filing the present suit.

(ix) The terms of this settlement and all discussions held shall remain confidential and shall not be disclosed to any third party except as may be required by law or to enforce the terms herein. Both the Parties agrees not to make any false, defamatory, or disparaging statements regarding either party, its products, trademarks, design, this agreement or business operations in any form, whether oral, written, or digital.”

2. Further to the aforesaid settlement terms, the parties have also enumerated two more clauses in para 7 and 8 of the application which may be relevant to be reproduced hereunder:

“7. The parties agree and undertake that the terms and conditions recorded herein shall be binding upon them, their legal heirs, successors, assigns, representatives, agents, etc., from the date of execution.

8. This jo