S3G Technology Llc Vs Sourcetrace Systems India Private… — Contempt of Court | Delhi HC (2025)

S3G Technology Llc Vs Sourcetrace Systems India Private… — Contempt of Court | Delhi HC (2025)

What the court decided

AI extract

Outcome

Contempt petition dismissed as withdrawn and disposed of pursuant to settlement; withdrawal permitted with liberty to the petitioner to seek revival of proceedings or pursue other remedies in the event of default by respondents Nos. 1-3 in complying with the obligations under the Agreement; settlement agreement kept on record in a sealed cover; pending applications disposed of.

Issue for consideration

Whether the petitioner should be permitted to withdraw the contempt petition in view of the settlement embodied in the Patent License Agreement and Amendment/Mutual Release effective as of 29.08.2025, with liberty to seek revival upon default by respondents Nos. 1-3, and whether the settlement may be placed on record in sealed cover.

Court's answer

Since the respondent accepted notice and did not dispute the factum of the settlement, the Court allowed and disposed of the withdrawal application CM APPL. 59549/2025.

Ratio / Principle

The settlement agreement may be kept on record in a sealed cover.

Key takeaways

In view of the allowed withdrawal application, the contempt petition CONT.CAS(C) 1895/2024 was dismissed as withdrawn and disposed of, and pending applications were also disposed of.ratio¶25

Detailed headnote1 paragraphs

Delhi High Court (Amit Sharma, J.), order dated 19.09.2025 in CONT.CAS(C) 1895/2024 - S3G Technology LLC v. Sourcetrace Systems India Private Limited & Ors. The petitioner sought leave under Section 151 CPC to withdraw its contempt petition in view of a settlement embodied in a Patent License Agreement and an Amendment to the Settlement and License Agreement and Mutual Release, each effective as of 29.08.2025, executed between the petitioner and contemnors/respondents Nos. 1, 2 and 3. Counsel for the respondents accepted notice and did not dispute the settlement. The Court allowed the withdrawal application (CM APPL. 59549/2025) with liberty to seek revival of proceedings or pursue other remedies upon default by respondents Nos. 1-3, permitted the settlement agreement to be kept on record in a sealed cover in view of its confidential and commercially sensitive nature, and dismissed the contempt petition as withdrawn, disposing of all pending applications.

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IN THE HIGH COURT OF DELHI AT NEW DELHI

- CONT.CAS(C) 1895/2024

S3G TECHNOLOGY LLC .....Petitioner

Through: Ms. Anju Agrawal, Ms. Manisha Singh, Mr. Abhai Pandey and Ms. Shivani Singh, Advocates.

versus

SOURCETRACE SYSTEMS INDIA PRIVATE LIMITED & ORS. .....Respondents Through: Ms. Vaishali Joshi, Mr. Vineet Rohilla and Mr. Rohit R., Advocates.

CORAM:

HON'BLE MR. JUSTICE AMIT SHARMA

O R D E R % 19.09.2025

This hearing has been done through hybrid mode.

CM APPL. 59549/2025 (withdrawal of the petition)

The present application under Section 151 of the CPC has been filed on

behalf of the petitioner/applicant seeking the following prayers:-

“a) Permit the Petitioner/ Applicant to withdraw the present contempt petition in view of the settlement embodied in the Patent License Agreement effective as of 29.08.2025 and Amendment to the Settlement and License Agreement and Mutual Release effective as of 29.08.2025, executed between the Petitioner/ Applicant and the Contemnors/Respondents Nos. 1, 2 and 3; b) Allow such withdrawal, with liberty to the Petitioner/ Applicant to seek revival of these proceedings or to pursue any other remedies available in law, in the event of default by the Contemnors/Respondents in complying with the obligations under the said Agreement;

c) Grant leave to the Petitioner/ Applicant to place the Patent License Agreement effective as of 29.08.2025 and Amendment to the Settlement and License Agreement and Mutual Release effective as of 29.08.2025 on record in a sealed cover, in view of its confidential and commercially

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2025 at 11:51:58

sensitive nature, for the Hon'ble Court's review and consideration; and d) Pass such further or other order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.”

Issue notice.

Learned counsel appearing on behalf of the respondent accepts notice and does not dispute the factum of settlement embodied in the Patent License Agreement effective as of 29.08.2025 and amendment to the Settlement and License Agreement and Mutual Release effective as of 29.08.2025, executed between the petitioner/applicant and the contemnors/respondents Nos. 1, 2 and 3.

In view of the above, the present application is allowed and disposed of accordingly.

The settlement agreement may be kept on record in a sealed cover.

CONT.CAS(C) 1895/2024

In view of the above, the present petition is dismissed as withdrawn and disposed of accordingly.

Pending application(s), if any, also stand disposed of.

AMIT SHARMA, J

SEPTEMBER 19, 2025 /sn/ns

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2025 at 11:51:58