$~8 * IN THE HIGH COURT OF DELHI AT NEW DELHI + RFA(COMM) 384/2025 & CM APPL. 42162/2025 RAJINDER KAUR .....Appellant Through: Mr. Prakhar Singh Sengar and Mr. Tushar Swami, Advs.

versus CANARA BANK .....Respondent Through: Mr. Akash Swami, Mr. Akhilesh Tejpal, Ms. Devika Mathur and Ms. Ayushi Negi, Advs.

CORAM:

HON'BLE MR. JUSTICE C. HARI SHANKAR HON'BLE MR. JUSTICE OM PRAKASH SHUKLA

ORDER(ORAL)

% 20.01.2026 C. HARI SHANKAR, J.

1. The disputes between the parties stand settled with the intervention of the Delhi High Court Mediation and Conciliation Centre. The settlement agreement dated 19 January 2026 is on record.

The terms of settlement read thus:

“AGREED TERMS AND CONDITIONS

1. The Parties state that the Second Party had instituted a commercial suit against the First Party which was decreed by the Learned Trial Court, Shahdara, Karkardooma Courts, Delhi vide judgment and decree dated 01.05.2025 for a sum of Rs. 11,00,000/- along with pendente lite and future interest @ 6% per annum and costs, and that the First Party thereafter preferred RFA (COMM) 384 of 2025 before the Hon’ble High Court of Delhi. During the pendency of the appeal, the Hon’ble High Court vide order dated 17.08.2025 stayed the execution of the decree subject to deposit of 50% of the decretal amount, pursuant to which the First Party deposited a Demand Draft bearing No. 340637 dated 11.08.2025 for an amount of Rs. 5,49,042/- in the name of the Registrar General, Hon’ble High Court of Delhi.

2. It is agreed that the First Party shall settle the entire dispute with the Second Party for a total settlement consideration of Rs. 11,00,000/- (Rupees Eleven Lakhs only) towards full and final settlement of the loan account, along with an additional sum of Rs. 50,000/- (Rupees Fifty Thousand only) towards litigation and allied expenses. It is expressly acknowledged that the amount of Rs.5,49,042/- deposited before the Hon’ble High Court forms part of the said settlement.

3. The Parties expressly agree that the first and mandatory step in implementation of this settlement shall he the filing of a joint application before the Hon’ble High Court of Delhi seeking release of the aforesaid Demand Draft bearing No. 340637 dated 11.08.2025 and its proceeds in favour of the Second Party, namely Canara Bank, in terms of this settlement. The First Party irrevocably consents to such release, undertakes not to raise any objection whatsoever, and agrees to fully cooperate for expeditious release of the said amount to the Second Party.

4. It is further agreed that after the joint application for release of the said Demand Draft is moved, the First Party shall pay the remaining balance settlement amount in one go and not in instalments, by way of Demand Drafts, consisting of Rs.5,50,958/- (Rupees Five Lakhs Fifty Thousand Nine Hundred Fifty-Eight only) towards balance settlement of the loan amount and Rs.50,000/- (Rupees Fifty Thousand only) towards litigation and allied expenses, both payable in favour of Canara Bank, SME Vivek Vihar, Jhilmil, Delhi, It is categorically agreed that no instalments, staggered payments, extensions, or part-payments shall be permissible and the entire settlement amount shall be paid and realized as a single consolidated transaction.

5. The Parties further agree that this settlement shall stand completed and fulfilled only upon full and final realization of the entire settlement amount of Rs.11,00,000/- along with Rs. 50,000/- towards litigation expenses by the Second Party, and that mere execution of this agreement or tender of Demand Drafts shall not amount to discharge unless the amounts are actually realized. The Second Party shall issue a No-Dues / No-Claim Certificate and treat the loan account as settled only upon such full realization, and no part compliance shall confer any right, equity, or benefit upon the First Party.

6. It is agreed that only after full and final realization of the entire settlement amount, the Parties shall take appropriate steps for