National Building Construction Corpn. Ltd & Anr v. G R G Construction Company

Delhi High Court · 03 Mar 2023 · 2023:DHC:1615

Chandra Dhari Singh

CS(OS) 2418/2011

2023:DHC:1615

civil appeal_allowed

AI Summary

The Delhi High Court recorded a valid settlement between parties under Order XXIII Rule 3 CPC, decreed the suit accordingly, and ordered refund of court fees to the plaintiff.

Full Text

NEUTRAL CITATION NO. 2023/DHC/001615

CS(OS) 2418/2011
HIGH COURT OF DELHI
Date of Order : 3rd March, 2023

CS(OS) 2418/2011 & I.A. 22854/2015& I.A. 11724/2017
NATIONAL BUILDING CONSTRUCTION CORPN. LTD & ANR ..... Plaintiffs
Through: Mr. Krishan Kumar, Mr. Nitin Pal, Ms. Muskan Jain and Mr. Dheeraj Kumar, Advocates along with Mr. Yashraj, Law Officer and Mr. Aditya Paliwal, AR

VERSUS

G R G CONSTRUCTION COMPANY ..... Defendant
Through: Mr. Sajad Sultan, Advocate along with Mr. Tanooq Gilkar, AR of the
Defendant

CORAM:

HON'BLE MR. JUSTICE CHANDRA DHARI SINGH O R D E R
CHANDRA DHARI SINGH, J (Oral)

I.A. 2530/2023 (Under Order XXIII Rule 3)

JUDGMENT

1. The instant application has been filed on behalf of the parties under Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure, 1908 seeking the following reliefs: “i) Take the present settlement application alongwith the Deed of Compromise / Settlement /MoU dated 6th January 2023 on record and pass a decree in terms of said Deed of Compromise / Settlement / MoU dated 6TH January 2023; ii) Direct the registry to refund court fee paid on the plaint bearing CS (OS) No 2418 of 2011 in accordance with the provision of the section 16 of the Court Fees Act, 1870; iii) Pass any further orders as this Hon'ble Court may deem fit and proper in the interest of justice.”

2. It has been submitted on behalf of the parties that 2 separate suits bearing nos. CS(OS) 2418/2011 and CS(COMM) 623/2019 have been instituted on behalf of the plaintiff for recovery of Rs. 2,28,36,940/- (Rupees Two Crore Twenty Eight Lacs Thirty Six Thousand Nine Hundred and Forty Only) in toto.

3. It has been submitted on behalf of the parties that the matter has been mutually settled between the parties vide Settlement Agreement dated 6th January, 2023. The relevant terms of the said Settlement Agreement are reproduced hereunder:

“B. And Whereas NBCC and GRG have mutually decided and agreed to compromise and settle all claims filed in the aforestated cases and thus are entering into this Memorandum of Understanding (MoU), where in GRG has voluntarily agreed to pay an amount of Rs 15985858/- (Rs One Crore Fifty Nine Lakhs Eighty-Five Thousand Eight Hundred and Fifty-Eight Only) to NBCC and NBCC has agreed to withdraw the afore stated pending cases and settle all the claims arising out of the subject matter thereof subject to receipt of aforesaid amounts. xxxxx

D. That the third and final installment would be released by

E. That GRG agrees and understands that the settlement shall attain finality and that the aforesaid pending cases would be withdrawn by N BCC only once GRG makes all the payments according to the time lines and payment plan prescribed hereinabove and in case of any unfortunate event like death or any calamity that may be fall upon any person/representative concerning GRG, the legal heirs would remain bound by the terms of this settlement.

F. That in the event of any default in payment by GRG as per the schedule at Clause C, any/all such amounts that may have been paid by GRG shall stand forfeited as a result of such default and NBCC shall be at liberty to continue with the aforementioned cases pending before the Hon'ble Delhi Court.

G. That the parties agree that they have mutually settled all their inter-se disputes and differences including the disputes pertaining to the subject matter of aforesaid Civil Suits/Cases subject however to the understanding between the parties as recorded in the preceding paras.

H. That each Party undertakes to abide by the terms of this settlement and also undertake not to initiate any legal action in future in respect to the matters pertaining to the Civil Suits/Cases as referred above since all matters pertaining to subject matter of the said Civil Suits are fully and finally settled subject however to the understanding between the parties as recorded in the preceding paras.”

4. It has been submitted on behalf of the parties that in light of the settlement agreement, the defendant has consented to pay an amount to the tune of Rs. 1,59,85,858 (Rupees One Crore Fifty Nine Lacs Eighty Five Thousand Eight Hundred and Fifty Eight Only) to the plaintiff. In consequence thereto, the matter shall be settled between the parties.

5. It has been further submitted that the defendant in pursuance to the Settlement Agreement dated 6th January, 2023 has already made a payment of Rs 59,85,858/- (Rupees Fifty Nine Lacs Eighty Five Thousand Eight Hundred and Fifty Eight Only) vide DD No. 365385 dated 3rd January, 2023 in favour of NBCC (India) Limited, drawn on Jammu & Kashmir Bank Limited, on 6th January, 2023 at the time of execution of the Settlement Agreement dated 6th January, 2023.

6. Heard the learned counsel for the parties and perused the Settlement Agreement dated 6th

7. In view of the above, the instant application bearing I.A. NO. 2418/2011 is allowed and the Settlement Agreement dated 6th January, 2023, is taken on record.

8. The application stands disposed of. CS(COMM)2418/2011 and I.A. Nos. 22854/2015 & 11724/2017

1. On perusal of the said Settlement Agreement dated 6ht January, 2023, this Court finds no infirmity therein.

2. The third and final instalment amounting to Rs. 1 Crore has been handed over by the defendant to the plaintiff in compliance of the ‘Clause D’ of the said Settlement Agreement vide Demand Draft bearing NO. 365388 dated 7th February, 2023. Mr. Aditya Paliwal, the Authorised Representative of the plaintiff company, has duly verified the particulars of the same to his satisfaction and stated them to be correct.

3. In light of the foregoing paragraphs, learned counsel appearing on behalf of the parties submitted that the dispute between the parties stands settled vide Settlement Agreement dated 6th January, 2023. It has been further submitted that the terms of the settlement agreement shall be binding on the parties.

4. The instant suit is accordingly decreed in terms of the Settlement Agreement dated 6th

5. The Registry is directed to draw up a decree sheet in terms thereof.

6. The instant suit stands disposed of along with pending applications, if any.

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7. Since the suit has been settled between the parties, the entire court fees be refunded to the plaintiff.

8. Accordingly, the Registry is directed to issue a certificate of refund of entire court fees to the plaintiff.

9. The order be uploaded on the website forthwith.

National Building Construction Corpn. Ltd & Anr v. G R G Construction Company

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