M/S Mary Matha Education Trust (Regd) vs. Mrs Mary Mathew
Original PDF →Facts
The petitioners, M/s. Mary Matha Education Trust (Regd.) and its representatives, filed a writ petition challenging an order dated 27.10.2023 passed by the LXII Addl. City Civil and Sessions Judge in O.S. No. 2694/2016. The original suit was filed by the respondents seeking eviction and vacant possession of a schedule property, along with arrears of rent. The dispute was referred to the Karnataka Mediation Centre. During mediation, the parties, including the 1st petitioner trust and the 1st respondent, reached a settlement. The terms of settlement involved payment of a total sum of Rs. 1,40,00,000/- by the petitioner to the respondent, with a portion of Rs. 60,00,000/- already deposited in court to be withdrawn by the respondent. The settlement also outlined payment schedules, rent for the extended tenancy period, and responsibilities regarding GST and other applicable taxes.
Held
The Court held that since both parties have appeared before the Mediation Centre and have arrived at a settlement agreement, the terms of this agreement should be honored. The Court noted that the parties have mutually agreed to the conditions laid out in the settlement, which includes financial settlements, rent adjustments for an extended tenancy period, and undertakings regarding GST and other taxes. Consequently, the Court found no impediment to disposing of the writ petition in terms of the compromise. The Court directed that the suit be decreed in terms of the settlement, and the writ petition was disposed of accordingly. No specific GST provisions were discussed or interpreted, as the dispute was resolved through a settlement agreement that included an undertaking to pay applicable GST.
Key Issues
1. Whether the settlement agreement arrived at between the parties through mediation is valid and binding, and if so, should the writ petition be disposed of in terms of this agreement? Petitioner's argument: The petitioners argued that they have resolved their disputes with the respondents through mediation and have entered into a comprehensive settlement agreement. They sought to have the writ petition disposed of in accordance with the terms of this agreement, which they believe amicably resolves the underlying issues of the original suit. Respondent's argument: The respondents, specifically respondent No. 1 and 2, have also agreed to the terms of the settlement. They have represented that upon signing the agreement, the original suit (O.S. No. 2694/2016) would be advanced, and they would not object to the withdrawal of the deposited amount. They are agreeable to the suit being decreed in terms of the settlement.
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Cause title — parties, addresses and appearances
ORAL ORDER
The parties to the lis were referred to Karnataka Mediation Centre for mediation and the report of mediation is placed before the Court which depicts that the parties have settled the dispute amongst themselves by drawing up certain terms of settlement. The said terms read as follows: “I. In the above Writ Petition the Petitioners have challenged the Order dated 27.10.2023 passed by the Learned LXII Addl. City Civil and Sessions Judge (CCH- 63), in O S No.2694/2016. The suit was filed by the respondent seeking eviction and vacant possession of the schedule property along with arrears of rent from the respondent. The said Writ Petition is referred to mediation to explore possibilities to resolve the dispute between the parties.
II. The 3rd petitioner is the power of attorney holder for the 2nd petitioner who is also the chairman of the 1st petitioner trust and he authorized to participate/negotiate and sign this agreement on behalf of the 1st and 2nd petitioner. The 1st respondent is is the power of attorney holder for the 2nd respondent who is none other than her son and she is authorized to participate/negotiate and sign this agreement on behalf of the 2nd respondent. The 3rd respondent has resigned as chairman of the 1st petitioner trust. Notice to respondents 4 to 13 has been dispense with as they are not necessary parties to the petition. HC-KAR NC: 2025:KHC:26520 III. During the course of mediation, both the parties have appeared and resolved their disputes and agreed to the following terms and conditions:-
The 1st petitioner shall pay a total sum Rs. 1,40,00,000/- (Rupees One Crore Forty Lakhs Only) the respondent No.1 has and the petitioner No.1 has no objection to respondent NO.1 withdrawing a sum of Rs. 60,00,000/- (Rupees Sixty Lakhs Only) which is deposited before the Hon'ble City Civil Court in O S No.2694/2016. 2. The respondent No.1 has represented to the petitioner No.1 that on signing of this settlement agreement the OS No.2694/2016 will be advanced and the petitioner No.1 would submit before the court that he has no objection to withdrawing a sum of Rs.60,00,000/-
The petitioner also undertakes to pay a sum of Rs.20,00,000 (Rupees Twenty Lakhs Only) dated 10.07.2025 by way of cheque drawn SBI Bank, Coffee Board Layout, Kempapura Branch Bearing Cheque No. 774158 and the remaining amount of Rs. 60,00,000 (Rupees Sixty Lakhs Only) will paid in 3 installments by Cheque bearing No. 774159 dated 26.07.2025 for a sum of Rs. 20,00,000 (Rupees Twenty Lakhs Only), 774152 dated 01.08.2025 for a sum of Rs. 20,00,000 (Rupees Twenty Lakhs Only) and 774153 dated 01.09.2025 for a sum of Rs. 20,00,000 (Rupees Twenty Lakhs Only) of SBI Bank, Coffee Board Layout, Kempapura Branch.
The petitioner No.1 will deposit a Sum of Rs, 10,00,000 (Rupees Ten Lakhs Only) as rent advance for every rotating 3 months advance and the same is paid by way of Cheque Bearing No. 774160 dated 30.08.2025 and the rent is fixed for a sum of Rs. 2,25,000 (Rupees Two Lakhs Twenty Five Thousand Only) per month with effect from 01.02.2025 to 31.12.2025 and the rent shall be paid before 10th of every calendar month. The petitioner No.1 undertakes to pay GST and other Taxes applicable as per law.
Both the parties agree that the total extension of the tenancy will be for a period of 1 year 9 months i.e. from 01.02.2025 to 30.09.2027 from 01.01.2026 to 30.09.2027 the petitioner has undertaken and shall pay HC-KAR NC: 2025:KHC:26520 a monthly rent of Rs.2,50,000/- and said rent shall be paid on or before 10th of every calendar month. The petitioner No.1 undertakes to pay GST and other Taxes applicable as per law.
The petitioner has agreed to provide the authorization of the Trustee appointed by the Trust to execute the agreement and has also undertaken to provide the Notarized copy of the present Trust Deed.
The petitioner is entitled to use the schedule premises only for running the St. Mary's Institute of Nursing and Mary Matha School of Nursing.
All utility bills like electricity, water shall be paid by the petitioner within the respective due dates to the concerned authorities. In the event any bill is left unpaid, the respondent is entitle to deduct the same from the security deposit along with penalty and only the balance amount in security deposit will be payable to the petitioner.
While vacating the schedule property and handing over vacant possession i.e. on the 1st of October 2027 the petitioner has agreed to pay one month rent towards repair, painting and other charges.
Both the parties have agreed that one set of keys of the front gate, main door will be with the respondent land lady, and no changes in the locks shall be made without the explicit written consent from the respondent. The petitioner undertakes not to sub-let the schedule premises. The petitioner further undertakes to maintain the building in good condition and that all maintenance charges will be borne by the petitioner. The petitioner undertakes not to carry out any illegal or activities which are against the law.
The petitioner has undertaken not to run the hostel in the schedule property. The nursing college will be run with the valid permission from the appropriate authorities and the respondent will not be responsible in any manner for civil, criminal liabilities arising from running of the nursing college. HC-KAR NC: 2025:KHC:26520
Both the parties agree that one room located on the left side on entering from the main entrance of the building will be left vacant for the respondent's use.
The defendant NO.11, 12 and 13 in the OS No.2694/2016 were inducted as sub-tenants by the petitioner. The petitioner hereby undertakes that the defendants NO.11, 12 and 13 have vacated the schedule premises.
The respondent shall have right to inspect the premises at any given time after due notice and intimation to the petitioner.
The petitioner agrees to provide list of persons who are in charge of the management.
The petitioner undertakes that no alterations shall be made in the said premises without the prior permission of the respondent.
If the petitioner defaults in adhering to any of the above conditions the respondent shall have the right to seek the immediate termination of this agreement and the petitioner shall vacate and handover vacant possession to the respondent forthwith, if the respondent is compelled to approach the courts of law the petitioner has undertaken bear all litigation expenses and lawyers fees.
The parties have entered into this settlement agreement on their free will and volition without any force, fraud or any undue influence from any one. IV. In view of the aforesaid agreement entered between the parties hereto, the parties pray that this Hon'ble Court be pleased to dispose off the above Writ Petition, in terms of the aforesaid agreement. V. Parties have agreed appear before Hon'ble Court for reporting settlement for passing necessary orders in terms of the agreement.” HC-KAR NC: 2025:KHC:26520
In the light of the settlement arrived at between the parties, on the aforesaid conditions, both the parties would submit that the suit is decreed in terms of the settlement and the decree is directed to be drawn by the concerned Court.
In the light of the settlement arrived at between the parties, the suit is decreed in terms of the compromise.
Ordered accordingly and Writ Petition is disposed. (M.NAGAPRASANNA) JUDGE
CBC List No.: 1 Sl No.: 37 CT:SS
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.