Disposed¶27

Prakash Chander and Ors. v. Padam Garg and Ors.

Delhi HC3 Apr 2025CS(OS)/366/2005

Case brief

AI extract

What is this about?

Consent-decree order, High Court of Delhi, 03.04.2025, Justice Purushaindra Kumar Kaurav; CS(OS) 366/2005; I.A. 7583/2025 under Order XXIII Rule 3 read with Section 151 CPC, 1908; settlement agreement dated 18.03.2025 between plaintiffs PRAKASH CHANDER AND ORS. and defendants PADAM GARG AND ORS.; suit decreed in terms of settlement; parties bound by settlement; demand drafts handed over in court (Arun Aggarwal, Praveen Aggarwal, Madhukant Agrawal, Sanjay Prakash Agrawal, Vijay C Agarwal) and originals of Rs.32,50,000/- (Satesh C. Agrawal) undertaken; decree sheet; disposal of suit and pending applications.

What did the court decide?

Civil suit decreed in terms of the settlement agreement dated 18.03.2025; decree sheet to be drawn up by the Registry; suit and pending applications disposed of. ¶27

Prakash Chander and Ors. Vs Padam Garg and Ors. — Delhi HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Civil suit decreed in terms of the settlement agreement dated 18.03.2025; decree sheet to be drawn up by the Registry; suit and pending applications disposed of.

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Issue for consideration

Whether the settlement agreement dated 18.03.2025 meets the essentials prescribed by Order XXIII Rule 3 CPC (lawful compromise, reduced to writing, duly signed, entered voluntarily) so that the Court may take it on record, bind the parties to it, decree the suit in its terms and dispose of the suit.

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Court's answer

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

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Ratio / Principle

The Court is satisfied that the settlement was arrived at following due procedure and meets the essentials specified in Order XXIII Rule 3; accordingly, the parties shall be bound by the settlement agreement.

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Key takeaways

The instant civil suit stands decreed in terms of the settlement dated 18.03.2025.ratio¶27
The Registry is directed to draw up the decree sheet.ratio¶28
The civil suit, along with the pending applications, stands disposed of.ratio¶29

Detailed headnote1 paragraphs

Delhi High Court (Hon'ble Mr. Justice Purushaindra Kumar Kaurav), order dated 03.04.2025: acting on joint application I.A. 7583/2025 under Order XXIII Rule 3 read with Section 151 CPC, 1908, the Court took on record the parties' settlement agreement dated 18.03.2025 and decreed civil suit CS(OS) 366/2005 in terms of that settlement. Having verified that the compromise met the essentials of Order XXIII Rule 3 - lawful, reduced to writing, duly signed - and that it was entered into without fear or coercion and on the parties' own volition, the Court held the parties bound by the settlement. Ten demand drafts were handed over in court by the defendants' counsel to the decree-holder's counsel (Rs.8,12,500/- each in favour of Arun Aggarwal and Praveen Aggarwal; Rs.16,25,000/- each in favour of Madhukant Agrawal, Sanjay Prakash Agrawal and Vijay C Agarwal), and further original demand drafts amounting to Rs.32,50,000/- (two of Rs.16,25,000/- each in favour of Satesh C. Agrawal) were undertaken to be handed over the same day. The Registry was directed to draw up the decree sheet; the suit, along with pending applications, stands disposed of.

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$~O-20

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- CS(OS) 366/2005 and I.A. 7583/2025

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PRAKASH CHANDER AND ORS. .....Plaintiffs Through: Mr. Satya Saharwat and Mr. Aditi Laxman, Adv. with plaintiff No.1(a)

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versus

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PADAM GARG AND ORS. .....Defendants Through: Mr. Gurkamal Hora, Mr. Kushal Gupta and Ms. Tanya Aggarwal, Advs. for D-1 to 4 with D-1 to 4 in person Defendant No.3(a) and 5(g) in person

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CORAM: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV O R D E R % 03.04.2025

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I.A. 7583/2025 (under Order XXIII Rule 3 read with Section 151 CPC, 1908 for taking on record settlement agreement dated 18.03.2025 and disposal of the suit)

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Heard on the joint application for placing on record the settlement agreement.

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It is submitted by the parties that the matter stood settled and the terms of settlement have been recorded vide settlement dated 18.03.2025. 3. Order XXIII, Rule 3 authorizes 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

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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 01/07/2025 at 11:53:19

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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 also satisfied that the settlement has been arrived at between the parties following due procedure and meeting the essentials specified in Order XXIII, Rule 3. Therefore, the parties shall be bound by the settlement agreement.

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During the Court of the hearing, learned counsel for defendants No.1, 3, and 4 handed over 10 (ten) demands drafts to learned counsel for the decree holder. The details of the said demand drafts are elucidated hereunder:-

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a) No.032143 and No.006347 dated 21.03.2025 for an amount of Rs.8,12,500/- each in favour of Mr. Arun Aggarwal.

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b) No.032146 and No.006346 dated 21.03.2025 for an amount of Rs.8,12,500/- each in favour of Mr. Praveen Aggarwal.

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c) No.032145 and No.06345 dated 21.03.2025 for an amount of Rs.16,25,000/- each in favour of Mr. Madhukant Agrawal.

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d) No.032144 and No.006344 dated 21.03.2025 for an amount of Rs.16,25,000/- each in favour of Mr. Sanjay Prakash Agrawal.

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e) No.032147 and No.006343 dated 21.03.2025 for an amount of Rs.16,25,000/- each in favour of Mr. Vijay C Agarwal.

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A photocopy of the said demands drafts has been placed on record.

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The original demand drafts amounting to Rs.32,50,000/- are undertaken to be handed over to the decree-holder during the course of the

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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 01/07/2025 at 11:53:19

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day. The details of the said demand drafts, which are undertaken to be handed over, as submitted by the learned counsel, are noted hereunder:-

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