Titan Company Limited vs. M/S. Parshv Padmavathi Enterprises

Facts

This Commercial Appeal was filed by Titan Company Limited (Appellant) against M/s. Parshv Padmavathi Enterprises (Respondent). The dispute arose from franchise agreements between the parties. The Respondent, a franchisee, had filed a suit seeking a declaration that the franchise agreement should continue until its expiry and for damages due to termination. The Appellant had filed a counter-claim seeking injunctions against the Respondent for using their trademarks and for recovery of dues. The Commercial Court had passed an order dated 31.05.2022, allowing the Respondent's interlocutory application in part, directing the Appellant to continue the dealership agreement until 17.08.2023. The Appellant challenged this order. During the pendency of the appeal, the parties filed an application under Order XXIII Rule 3 read with Section 151 of the CPC, reporting an amicable settlement of all disputes.

Held

The Court took on record the Memorandum of Compromise Petition filed by both the Plaintiff (Respondent in appeal) and the Defendant (Appellant in appeal). The parties, represented by their respective counsels and present before the Court, affirmed the terms of the compromise. The Court found that the parties had amicably settled all disputes subsisting between them. Consequently, the appeal was ordered to be disposed of in terms of the compromise petition. The judgment and decree of the lower court were modified accordingly. The parties were directed to bear their respective costs. The office was instructed to examine and refund the permissible court fee and draw the decree. Pending interlocutory applications were also disposed of as they did not survive.

Key Issues

1. Whether the parties have amicably settled all disputes subsisting between them concerning the franchise agreements and the related Commercial Original Suit No. 1044/2021. Contentions: Appellant (Titan Company Limited): Submitted that an amicable settlement has been reached with the Respondent. They presented a Memorandum of Compromise Petition detailing the terms of the settlement, which they sought to have recorded and acted upon by the Court. Respondent (M/s. Parshv Padmavathi Enterprises): Concurred with the Appellant regarding the amicable settlement. They participated in the drafting and execution of the Memorandum of Compromise Petition and affirmed its contents before the Court. They sought for the appeal to be disposed of in terms of the settlement.