The court affirmed that non-compliance with judicial orders regarding fund release constitutes illegality and ordered immediate compliance with settlements.

JUDGMENT

The petitioner has approached this Court seeking the following reliefs:

i. Issue a writ of mandamus or nay other appropriate Writ, Order or direction commanding respondents 1 & 2 to release the amount attached in C.S. No.5/2024, in terms of the Ext.P1 settlement and Ext.P3 order.

ii. Declare that the continued withholding of the payment by respondents 1 and 2 after Ext.P3 order is illegal, arbitrary, and in violation of the judicial order passed by the Commercial Court, Perumbavoor.

iii. Direct respondents 1 and 2 to disburse the amount to the petitioner without further delay, enabling the petitioner to honour the settlement with the 3^rd respondent.

iv. Grant such other and further reliefs as this Hon’ble Court may deem fit in the interest of justice.

2. The facts that led to the filing of this writ petition are as follows:

The petitioner is the 1^st defendant in C.S. No.5/2024 on the files of the Commercial Court, Perumbavoor, which suit was filed by the 3^rd respondent for recovery of money from the petitioner. In the said suit, garnishee order was passed by the Commercial Court, in respect of the amounts payable to the petitioner by respondents 1 and 2. Subsequently, a dispute between the petitioner and the 3^rd respondent was settled, and Ext.P1 is the mediation settlement agreement entered into between the parties. Ext.P2 is the application submitted by the petitioner, directing the garnishee respondents to release an amount of Rs.50 Lakhs, being the settlement amount, to the plaintiffs therein, i.e., the 3rd respondent herein, and the remaining amount to be released to the petitioner.

3. The said application was allowed as per Ext.P3 order by the Commercial Court, Perumbavoor. Since the amounts were not released by the 1^st and 2^nd respondents, this writ petition is seeking the above reliefs.

4. In response to the averments contained in the writ petition, a statement was submitted by the 1^st respondent. In the said statement, it is submitted that, as the said respondent was not a party to the Ext.P1 settlement, they are not in a position to transfer the amount of Rs.50 lakhs to the 3^rd respondent herein, in terms of Exts.P1 and P3 orders. However, the 1^st respondent expressed no objection in the petitioner transferring the amount agreed between the petitioner and the 3^rd respondent, to the 3^rd respondent’s account in terms of Ext.P1.

5. Now in the light of the aforesaid averments and also Ext.P3 order, I am of the view that this writ petition can be disposed of by directing the disbursement of the amounts, in tune with the settlement arrived at between the petitioner and the 3^rd respondent.

Accordingly, it is ordered that the 1^st and 2^nd respondents shall ensure the release of an amount of Rs.50 Lakhs to the account of the 3^rd respondent, in compliance with Ext.P3 order passed by the Commercial Court, Perumbavoor, in I.A. No. 11/2025 in C.S. No. 5/2024, and the remaining amount shall be released to the petitioner. The same shall be done within a period of two weeks from the date of receipt of a copy of this judgment.

Sd/-