Disposed¶23

Shri Virender Mohan Sahni v. Chetanya Buildcon Private Limited & Ors.

Delhi HC19 May 2025CS(COMM)/1102/2024

Case brief

AI extract

What is this about?

Consent decree; compromise; settlement agreement dated 23.04.2025; Order XXIII, Rule 3; voluntary settlement without coercion; undertakings Annexure A-D; binding only on settling parties; Mediation Centre settlement; refund of entire court fees; decree sheet; cancellation of fixed dates; commercial suit; Delhi High Court; Virender Mohan Sahni v. Chetanya Buildcon Private Limited & Ors.; 2025.

What did the court decide?

Suit decreed in terms of the settlement agreement dated 23.04.2025 and the undertakings (Annexures A-D), which form part of the decree; the settling parties bound accordingly; Registry directed to draw up the decree sheet; entire court fees refunded; dates already fixed i.e. 15.07.2025 and 30.07.2025 cancelled; suit disposed of. ¶23

Shri Virender Mohan Sahni Vs Chetanya Buildcon Private Limited & Ors. — Delhi HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

¶23

Issue for consideration

Whether the settlement dated 23.04.2025 between the plaintiff and defendant No.1 satisfies the essentials of Order XXIII, Rule 3 (compromise lawful, reduced to writing, duly signed by the parties) so as to enable the Court to pass a consent decree in the suit.

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Court's answer

The settlement was agreed upon without fear or coercion, and the parties entered into the settlement agreement on their own volition.

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Ratio / Principle

The Court was satisfied that the settlement was arrived at following due procedure and met the essentials specified in Order XXIII, Rule 3.

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Key takeaways

The arrangement is between the plaintiff and defendant No.1 only and will not bind the other parties to the suit.ratio¶16
The parties to the settlement shall be bound by the settlement agreement and the undertakings, and the suit stands decreed in terms of the settlement and undertakings, which form part of the decree.ratio¶23
Since the matter was settled before the Mediation Centre, the entire court fees is to be refunded to the parties.ratio

Detailed headnote1 paragraphs

Delhi High Court (Purushaindra Kumar Kaurav, J.), CS(COMM) 1102/2024, order dated 19.05.2025: On I.A. 12657/2025 jointly moved by the plaintiff and defendant No.1 for a consent decree, the Court noted the amicable settlement dated 23.04.2025 along with undertakings at Annexures A-D, verified the parties' identities and presence in court, and found the settlement to have been entered into voluntarily, without fear or coercion. Holding that the settlement met the essentials of Order XXIII, Rule 3 - a lawful compromise, reduced to writing and duly signed by the parties - the Court decreed the suit in terms of the settlement and undertakings, which were made part of the decree. The arrangement binds only the plaintiff and defendant No.1 and not the other defendants. The Registry was directed to draw up the decree sheet; as the matter was settled through the Mediation Centre, the entire court fees was directed to be refunded; the fixed dates of 15.07.2025 and 30.07.2025 stood cancelled and the suit was disposed of.

¶1

$~O-54

¶2

IN THE HIGH COURT OF DELHI AT NEW DELHI

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- CS(COMM) 1102/2024

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SHRI VIRENDER MOHAN SAHNI .....Plaintiff

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Through: Mr. Prosenjeet Banerjee, Mr. Sarad Kumar Sunny, Mr. Keshav Mann and Ms. Nandini Harit, Advs. with plaintiff in person.

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versus

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CHETANYA BUILDCON PRIVATE LIMITED & ORS.

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.....Defendant Through: Mr. Shreyans Singhvi and Ms. Akanksha Agrawal, Advs. for D-1 with defendant No.1 in person.

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CORAM: HON’BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

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O R D E R

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% 19.05.2025

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I.A. 12657/2025 (filed on behalf of the plaintiff and defendant No.1 seeking passing of consent decree in the present suit)

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Learned counsel appearing for the plaintiff and defendant No.1 appear to have arrived at an amicable settlement.

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The concerned parties are also present in court. Their identity is verified by their counsel. Their appearance is marked.

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Besides the settlement agreement dated 23.04.2025, various undertakings, annexure A, B, C and D, have also been placed on record.

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It is also seen that this arrangement is between the plaintiff and defendant No.1 and will not bind other parties.

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This is a digitally signed order.

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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 23/05/2025 at 12:59:21

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Order XXIII, Rule 3 authorises the Court to pass a decree on a compromise wherein the parties to the dispute have made an arrangement to settle the dispute. It has been comprehensively stated in the provision that the settlement arrived at should meet the essentials laid down therein, namely, (i) the compromise is lawful (ii) it is reduced in writing (iii) it is duly signed by the parties arriving at the compromise.

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The settlement has been agreed upon without fear or coercion and the parties appear to have entered into the settlement agreement on their own volition.

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The Court is satisfied that the settlement has been arrived at between the parties following due procedure and meeting the essentials specified Order XXIII, Rule 3.

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Therefore, the concerned parties to the settlement shall be bound by the aforesaid settlement agreement and the undertakings.

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In view of the aforesaid, the suit stands decreed in terms of settlement and the undertakings. They shall form part of the decree.

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The Registry is directed to draw-up a decree sheet.

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Since the matter has been settled before the Mediation Centre, the entire court fees be refunded.

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Suit stands disposed of.

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The date already fixed i.e. 15.07.2025 and 30.07.2025 stands cancelled.

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PURUSHAINDRA KUMAR KAURAV, J

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MAY 19, 2025/P/MJO

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Click here to check corrigendum, if any

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This is a digitally signed order.

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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 23/05/2025 at 12:59:21

Shri Virender Mohan Sahni v. Chetanya Buildcon Private Limited & Ors.

Case brief

What is this about?

What did the court decide?

Shri Virender Mohan Sahni v. Chetanya Buildcon Private Limited & Ors.

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

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