Om Prakash & Ors. Vs Engineers Housing Welfare Society & Anr. — Delhi HC (2025) — LawSathi Research

Om Prakash & Ors. Vs Engineers Housing Welfare Society & Anr. — Delhi HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Suit decreed in terms of the Settlement Agreement dated 16.04.2024, which forms part of the decree; defendants handed over three demand drafts totalling Rs. 1,00,00,000/- and are to pay interest at 6% per annum from 16.04.2024 till date within 15 days; entire court fees refunded to the plaintiff; suit and pending applications, if any, disposed of; next date 11.02.2026 cancelled.

Issue for consideration

Whether the settlement between the parties satisfies the essentials of Order XXIII, Rule 3 CPC so that a decree may be passed on the compromise and the parties bound by the Settlement Agreement dated 16.04.2024. +1 more

Court's answer

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

Ratio / Principle

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

Key takeaways

The parties shall be bound by the terms of the Settlement Agreement.ratio¶21
Interest on the settlement amount at the rate of 6 per cent per annum, with effect from 16.04.2024 till date, is to be paid by the defendants within 15 days to the plaintiff.ratio¶25
The suit stands decreed in terms of the Settlement Agreement dated 16.04.2024.ratio

Detailed headnote1 paragraphs

Delhi High Court (Purushaindra Kumar Kaurav, J.) decreed CS(OS) 2843/2014 in terms of the parties' Settlement Agreement dated 16.04.2024, invoking Order XXIII, Rule 3 CPC and recording that the compromise was lawful, reduced to writing and signed, and entered into without fear or coercion on the parties' own volition. During the hearing the defendants handed over three demand drafts drawn on Punjab Nation Bank totalling Rs. 1,00,00,000/-. On the plaintiffs' contention that payment was made about seven months late, and with the defendants agreeing, the Court further directed payment of interest at 6 per cent per annum from 16.04.2024 till date within 15 days. The entire court fees was ordered refunded, the Settlement Agreement was made part of the decree, the suit along with pending applications stood disposed of, and the next date of 11.02.2026 was cancelled.

$~O-39

IN THE HIGH COURT OF DELHI AT NEW DELHI

- CS(OS) 2843/2014

OM PRAKASH & ORS .....Plaintiffs

Through: Mr. B.D. Sharma, Adv.

versus

ENGINEERS HOUSING WELFARE SOCIETY & ANR

.....Defendants

Through: Mr. Udayan Khurana, Mr. Kartikey Kaushik, Adv. with D-2 and AR f the D-1

CORAM:

HON’BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV O R D E R % 21.11.2025

I.A. 29127/2025 (early hearing)

The application has been moved seeking early hearing on the ground that the parties have amicably settled the present dispute.

In view of the above, the application is allowed and disposed of. CS(OS) 2843/2014

The parties have amicably settled their disputes by way of Settlement Agreement dated 16.04.2024.

Order XXIII, Rule 3 of the Code of Civil Procedure (the CPC) 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 aforesaid provision that the settlement arrived at should meet the essentials laid down therein, namely, (i) the compromise

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 28/11/2025 at 14:55:42

is lawful (ii) it is reduced in writing (iii) it is duly signed by the parties arriving at the compromise.

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.

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 of the CPC. Therefore, the parties shall be bound by the terms of the Settlement Agreement.

As per the terms of the settlement, the defendants were required to pay a sum of Rs. 1,00,00,000/- to the plaintiffs. During the course of the hearing, three Demand Drafts bearing DD No.260487 dated 22.09.2025 of Rs. 30,00,000/-, DD No.260488 dated 22.09.2025 of Rs. 30,00,000/- and DD No.260489 dated 22.09.2025 of Rs. 40,00,000/-,all drawn on Punjab Nation Bank, totaling a sum of Rs.1,00,00,000/- have been handed over to the plaintiffs by the defendants.

Learned counsel appearing for the plaintiffs however, contends that the aforesaid payment is being made only today, i.e., around seven months after entering into the Settlement Agreement. Therefore, it is prayed that the defendants be directed to pay interest on the agreed amount of Rs.1,00,00,000/-.

The aforesaid position is agreeable to the defendants.

Let interest on the aforesaid amount at the rate of 6 per cent per annum, with effect from 16.04.2024 till date, be also paid by the defendants within 15 days from today to the plaintiff.

The suit stands decreed in terms of the Settlement Agreement dated

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 28/11/2025 at 14:55:42

16.04.2024. The said Agreement shall form a part of the decree.

The entire Court fees be refunded to the plaintiff.

In view of the above, the instant suit, along with pending applications,

if any, stands disposed of.

Next date i.e. 11.02.2026 stands cancelled.

PURUSHAINDRA KUMAR KAURAV, J

NOVEMBER 21, 2025

Pallavi/amg

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 28/11/2025 at 14:55:42