The Executive Engineer vs. Stes Consultants INDIA PVT

Facts

The Executive Engineer (RDPRD), Project Division, Bagalkot (Appellant) filed a Commercial Appeal against a judgment and decree dated September 19, 2019, passed by the IV Additional District and Sessions Judge (Commercial Court), Ballari, in Com O.S. No. 157/2019. The appeal was filed under Section 13(1) of the Commercial Courts Act, 2015. The matter was referred for mediation, and a memorandum of agreement was filed under Section 89 of the Code of Civil Procedure read with Rules 24 and 25 of the Karnataka Civil Procedure (Mediation) Rules, 2007. Both parties were present and had settled their dispute. The appellant handed over a cheque for Rs. 6,72,708/- (after TDS deduction) to the 1st Respondent, STES Consultants India Pvt Ltd., as full and final settlement of the dispute for Rs. 7,48,866.11/-.

Held

The Court held that the dispute between the Appellant and the 1st Respondent has been settled as per the Memorandum of Agreement. The terms of the agreement stipulated a full and final settlement amount of Rs. 7,48,866.11/-. The Appellant was to submit tax invoice bills with GST numbers, and the 3rd Respondent (Karnataka Rural Road Development Agency) was to clear these bills. The Appellant has already handed over a cheque for Rs. 6,72,708/- to the 1st Respondent, representing the settled amount after TDS deduction. Consequently, the Commercial Appeal was disposed of in terms of the Memorandum of Agreement. The judgment and decree dated September 19, 2019, passed by the Commercial Court, Ballari, was modified accordingly. The Court also directed the refund of Court fee to the 3rd Respondent.

Key Issues

1. Whether the dispute between the Appellant and the 1st Respondent has been settled as per the Memorandum of Agreement filed under Section 89 of the CPC and the Karnataka Civil Procedure (Mediation) Rules, 2007? Contentions: Petitioner/Appellant: The Appellant contended that a settlement has been reached with the 1st Respondent, as evidenced by the Memorandum of Agreement. They sought to set aside the impugned judgment and decree based on this settlement. Revenue/State: The judgment does not record any specific arguments made by the Revenue or State respondents regarding the settlement or the original dispute. However, the settlement terms indicate the State's involvement in clearing bills and potential benefits derived from the settlement.