The Delhi High Court upheld and enforced a valid settlement agreement between parties, directing release of court-deposited funds and disposing of the pending appeal and execution petition accordingly.
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RFA(COMM) 133/2025 HIGH COURT OF DELHI RFA(COMM) 133/2025 SMT. RUCHIKA WALIA .....Appellant Through: Ms. Ishika Ahluwalia and Mr. Vipul Singh, Advs.
VERSUS
SHRI NITIN GARG .....Respondent Through: Mr. Sumit Rajput, Adv.
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR HON'BLE MR. JUSTICE VINOD KUMAR ORDER (ORAL) 10.07.2026
JUDGMENT
1. The disputes between the parties stand settled by the intervention of Delhi High Court Mediation & Conciliation Center. The Settlement Agreement dated 25 May 2026 is on record. Learned Counsels for the parties are also present. We have seen the terms of settlement and find that they are valid and are capable of enforcement. The terms reads thus:
C. HARI SHANKAR, J.
“1. That the First Party has offered and Second Party has agreed to receive a total sum of Rs. 19,50,000/- (Rupees Nineteen Lakhs Fifty Thousand Only) from the First Party towards the full and final settlement of all claims and disputes between the parties. 2. It is further agreed that a sum of Rs. 10,00,000/- (Rupees Ten Lakhs Only), deposited by the First Party before the Hon'ble
High Court of Delhi, shall be released to the Second Party. The parties shall make a joint request to Hon'ble Court for a direction to release the amount in favor of Second Party.
3. The balance amount Rs. 9,50,000/- (Rupees Nine Lakhs Fifty Thousand Only) shall be paid by the Appellant to the Second Party within,a period of three (3) months from the date of order passed by Hon'ble Court. The First Party may make entire balance payment in parts during the said period of three months.
4. That it is agreed between the parties that this is full and final settlement between the parties with respect to all the pending liabilities against the First Party. And it is further agreed between the parties that after the execution of the present settlement Agreement the Second Party will not raise any claim against the First party. This settlement agreement shall bring an end to all the existing liabilities not just limited to the amount of the Invoices in question.
5. That the Second Party hereby irrevocably releases and forever discharges the First Party from any claims and any other liabilities between the Parties. This settlement is full and final with respect to all the liabilities.
6. That in case of any default in payment of balance settled amount as explained above in this present Settlement Agreement by the First Party, the Second Party shall be entitled to; (a) revive and pursue the, execution proceedings and/or any other legal proceedings available under law against the First Party; (b) recover the entire outstanding amount along with interest @ 24% per annum, costs and expenses, without prejudice to the right of the Second Party to recover the remaining outstanding amount in accordance with law.
7. That the Second Party undertakes that they will not raise any claim or demand, whatsoever, against the First Party over and above present settlement amount after execution of the said agreement by the First Party towards the full and final settlement of all the pending liabilities.
8. That after receipt of the payment in terms of the present settlement, the Parties shall have no claim against each other. All existing liabilities of the First Party towards the Second Party shall be considered as settled between the parties after the execution of this agreement. It is further agreed that they shall not file any further claims against each other or complaint or litigation of either civil or criminal nature whatsoever in any court or before any Authority in present or in future considering the subject matter of this settlement. In case, any litigation is pending against each other, the same shall be considered as null and void.
9. The Settlement Agreement has been read over and explained to the Parties in their Vernacular by the respective counsel and the Parties have agreed and understood the same.
10. That it is agreed between the parties that they shall remain bound with the above said terms and conditions as mentioned in the settlement.
11. That the parties also state that they executed this Settlement, voluntarily own free will, accord, consent and without any undue influence and pressure. Both the parties have understood the contents of the Settlement in their vernacular and undertakes not to dispute the contents of the settlement in any manner whatsoever.
12. The Parties undertake before the Hon'ble Court to abide by the terms and conditions set out in the Agreement and not to dispute the same.”
2. Learned Counsel appearing on behalf of their respective clients undertake that they would be bound by the terms of settlement.
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3. As such, no dispute survives for adjudication.
4. Learned counsel for the parties ad idem submit that an amount of ₹ 10 lakhs deposited by the appellant in this court is required, as per the terms of settlement, to be released to the respondent. Accordingly, the Registry is directed to release the said amount to the respondent along with the interest that may have accrued thereon, on the respondent approaching the Registry for that purpose.
5. The appeal stands disposed of, in these terms.
6. Execution Petition No. 69/2025 pending before learned Commercial Court shall also stand disposed of in terms of the order passed today.
C. HARI SHANKAR, J
VINOD KUMAR, J JULY 10, 2026
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