A court may dispose of a commercial appeal based on a mediated settlement agreement when the terms are lawful and enforceable, with such agreement constituting a binding judicial undertaking where breach of terms may invite contempt proceedings.

ORDER :

C. HARI SHANKAR, J.

1. The dispute between the parties stands settled with the intervention of the Delhi High Court Mediation and Conciliation Centre.

2. A copy of the settlement agreement dated 22 April 2026 is on record. The settlement agreement refers to the appellant as the first party and the respondent as the second party. The terms of settlement read thus:

“1. The Parties have agreed that a sum of Rs. 5,90,000/- (Rupees Five Lakhs Ninety Thousand only) shall be paid by the First Party to the Second Party as a mutually agreed amount for full and final settlement of all disputes between the Parties, without admission of any liability, fault, breach, or wrongdoing by any Party.

2. It has been agreed between the Parties that out of the deposited amount alongwith the accrued interest, the Second party shall be entitled to take the payment of Rs. 5,90,000/- deposited with the Registrar General of this Hon'ble Court and the First party has no objection, if the said amount of Rs. 5,90,000 shall be released to the Second Party through Authorized Representative on completion of all the requisite formalities.

3. It is agreed between the Parties that the balance amount lying deposited before the Registrar General after adjusting the amount of Rs. 5,90,000/- be refunded to the First Party alongwith accrued interest on completion of all the requisite formalities.

4. It is further agreed between the parties that both the Parties shall restrain themselves from publishing/printing/sharing the outcome of this settlement on any public platform. It is also agreed that the terms of this Settlement shall be treated as confidential.

5. The Parties shall pray before the Hon’ble court for disposal of the present appeal being RFA (COMM) 496/2025 in terms of the present Settlement Agreement.

6. It is agreed between the Parties that the First party shall make a request to the Hon’ble Court for refund of the Court fee and the Second Party shall have no objection to the same.

7. The Parties shall have no further claims against each other or the Proceedings, or any matter incidental or ancillary thereto.

8. The Parties agree to maintain cordial relations henceforth and shall not make, publish, or communicate any disparaging or defamatory statements regarding the other Party, its business, reputation, officers, partners or employees.

9. By signing this Settlement Agreement the parties hereto stated that they have no further claims or demands against each other and all the disputes and differences have been amicably settled by the Parties hereto through the process of Mediation.

10. The Parties agree that they shall abide by the terms and conditions set out in the present Settlement Agreement and shall not dispute the same hereinafter in the future. The Parties further agree that the statements made by them in this Settlement Agreement shall be taken as their respective undertakings to the Hon’ble Court and the defaulting party shall be held liable for contempt of court under the Contempt of Courts Act, 1970.

11. The Parties have understood the contents of this Settlement Agreement in its true letter and spirit and undertake to be bound by the terms and conditions of this Settlement Agreement.”

3. The respondent is present in person. Learned Counsel for the parties are also present. They undertake on behalf of their respective clients to be bound by the terms of settlement.

4. The Court has perused the terms of settlement and found them to be lawful and enforceable in law. As is apparent from the terms of settlement, the dispute has been settled for an amount of ₹ 5,90,000/-.

5. As such, out of the amount deposited by the appellant in the present appeal i.e. ₹ 10,55,191/-, the Registry is therefore directed to remit an amount of ₹ 5,90,000/- to the respondent and pay the balance amount a