The enforceability of settlement agreements in arbitration proceedings and the implications of defaulting on payment obligations.

JUDGMENT

Parties have settled the dispute in mediation on the following terms and conditions :-

“1. Respondent Lazdana Hotels and Resorts Pvt Ltd represented by the Executive Director Mr. Mohammed Nife agrees to pay a sum of Rs.7,50,000/- (Rupees Seven lakhs fifty thousand only) plus 18% GST inclusive, being a total sum of Rs.8,85,000/- (Rupees Eight lakhs eighty five thousand only) to the claimant M/s Kumar Group Total Designers represented by the Managing Director Mr. Anooj Gopakumar by 28^th January 2026 without fail to settle the claims revised in Arbitration dispute and the respondent agrees to accept the said proposal for a full and final settlement of all claims raised in their Arbitration dispute. There won’t be any further claims between the parties in this issue as the payment is towards the entire claim settlement involved in this A.R.

2. In case of default in payment as agreed to herein both parties agree that the respondent will have to pay an interest at

18% per annum for the sum of Rs.8,85,000/- (Rupees Eight lakhs eighty five thousand only), the issue involved being a commercial transaction till effecting the payment and that the claimant is at liberty to get this settlement agreement executed in accordance to law. It is also agreed that the respondent will be liable to pay the entire cost of execution of this settlement agreement in case of default.”

In view of the settlement, the arbitration request is closed.

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