Sudera Realty PVT LTD vs. Indian Oil Corporation LTD.
Original PDF →Facts
The case involves a civil suit (CS/77/1995) between Sudera Realty Pvt Ltd (Plaintiff) and Indian Oil Corporation Ltd. (Defendant). During the pendency of the suit, the parties appeared before the Supreme Court in a Special Leave to Appeal (No. 7467-7468/2024), where they indicated a settlement had been reached. The Supreme Court disposed of the appeal on April 7, 2025, based on this settlement. Subsequently, on November 3, 2025, the parties filed an application (GA/13/2025) before the High Court detailing their negotiated terms of settlement. These terms addressed the plaintiff's claim for the defendant's occupation of specific premises up to May 31, 1994, including the principal amount, Goods and Services Tax (GST), and adjustments for amounts already withdrawn or deposited. The settlement also stipulated the procedure for payment, TDS deduction, and the raising of a GST invoice.
Held
The Court accepted the terms of settlement presented by the parties in IA NO. GA/13/2025. The Court directed the department to draw a compromise decree based on these terms. The settlement amount was agreed upon as Rs. 20,50,00,000 for the defendant's occupation up to May 31, 1994, with an additional 18% GST amounting to Rs. 3,69,00,000, making a total of Rs. 24,19,00,000. This total was to be reduced by amounts already withdrawn by the plaintiff (Rs. 2,34,93,739) and deposited with the Registrar (Rs. 8,16,732.41), resulting in a balance payable amount of Rs. 21,75,89,528.59 after TDS deduction. The Court also directed the withdrawal of the deposited sum of Rs. 8,16,732.41 with accrued interest in favor of the plaintiff. The parties were debarred from raising further claims against each other related to the suit. The Civil Suit No. CS 77 of 1995 and all pending applications were disposed of, and interim orders were vacated. The ratio decidendi is that courts can facilitate and decree settlements between parties, including those involving GST, provided the terms are clear and agreed upon.
Key Issues
1. Whether the terms of settlement, as agreed upon by the parties and presented to the Court, are to be accepted and a decree to be drawn accordingly, particularly concerning the inclusion of Goods and Services Tax (GST) in the settlement amount. Petitioner/Plaintiff's Arguments: The plaintiff, Sudera Realty Pvt Ltd, argued that the parties had reached a comprehensive settlement covering all claims, including GST, and sought the Court's approval to draw a decree based on these terms. They relied on the negotiated terms of settlement, which explicitly included GST at 18% on the principal claim, and the subsequent withdrawal of pending applications/appeals before various courts, including the Supreme Court. Revenue/State's Arguments: The judgment does not record any specific arguments made by the revenue or state authorities. The proceedings appear to be between the private parties to the suit, with the Court facilitating the settlement and drawing a decree.
AI-generated summary — verify with the full judgment below
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OD 9, 10, 11, 12. IN THE HIGH COURT AT CALCUTTA ORDINARY ORIGINAL CIVIL JURI ICTION ORIGINAL SIDE
IN THE MATTER OF :- IA NO. GA/9/2019 (Old No: GA/643/2019) In CS/77/1995 IA NO. GA/10/2019 In CS/77/1995 IA NO. GA/12/2023 In CS/77/1995 IA NO. GA/13/2025 In CS/77/1995 BEFORE : THE HON’BLE JUSTICE ANANYA BANDYOPADHYAY DATE : NOVEMBER 21, 2025. The Court:- The learned Advocate representing the respective parties are present. During the pendency of the instant suit, the parties of the same appeared before the Hon’ble Supreme Court, in a Special Leave to Appeal being
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No. 7467-7468/2024 and indicated the disputes to have been settled between the parties. Accordingly, the Special Leave to Appeal had been disposed of, vide order dated 7.4.2025. The parties to the suit had filed the instant GA/13/2025 in connection with the suit No. 77 of 1995, on 3.11.2025, inter alia stating the negotiated terms of settlement as follows:- i. The parties have agreed to settle the entire claim of the plaintiff towards defendant's occupation of the 2nd, 3rd and 4th floors at 1 Shakespeare Sarani, Kolkata 700071, being the suit premises, up to 31 May 1994, at an amount of Rs. 20,50,00,000 (Rupees Twenty Crore and Fifty Lakh only), together with Goods and Services Tax at the rate of 18% thereon amounting to Rs. 3,69,00,000 (Rupees Three Crore Sixty Nine Lakh only). Thus, the total amount towards full and final settlement of all the claims of Plaintiff is Rs. 24,19,00,000 inclusive of GST. ii. The above total sum of Rs. 24,19,00,000 (Twenty Four Crore Nineteen Lakh only) shall be reduced by the sum of Rs.2,34,93,739 (Rupees Two Crore Thirty Four Lakh Ninety Three Thousand Seven Hundred Thirty Nine only), which has already been withdrawn by the plaintiff as stated above. iii. Further, the defendant has already deposited a sum of Rs.8,16,732.41 with the Learned Registrar, Original Side, which would be permitted to be withdrawn by the plaintiff upon passing of an appropriate order by 3
this Hon'ble Court in terms of the instant settlement. The said sum of Rs 8,16,732.41 shall also be reduced from the total settlement amount of Rs.24,19,00,000 mentioned above. iv. The balance amount payable by the defendant to the plaintiff the instant terms of settlement would be Rs.21,75,89,528.59 (Rupees Twenty-One Crore Seventy-Five Lakh Eighty-Nine Thousand Five Hundred Twenty-Eight and Paisa Fifty-Nine only). The said amount shall be paid after deducting TDS u/s 194-1 @10% or at the rate as per lower deduction certificate u/s 197 of the IT Act, 1961 to be provided by the Plaintiff applicable on the total settlement amount i.e. Rs. 20,50,00,000 (Rupees Twenty Crore and Fifty Lakh only). v. That the parties shall take immediate steps to withdraw all pending applications/ appeals/ revisions pending before different courts in connections with / arising out of instant suit bearing CS No. 77 of 1995, including the application for recall pending before the Hon'ble Supreme Court. vi. Upon passing of a decree by this Hon'ble Court in terms of the above stated settlement terms between the parties, the plaintiff shall raise a GST invoice for the entire settlement amount i.e. Rs. 20,50,00,000 (Rupees Twenty Crore and Fifty Lakh only) upon the defendant mentioning the GST Identification number of the defendant, together with a "bank mandate form", cancelled cheque, and a copy of the PAN Card of the plaintiff to enable the defendant to make payment of the 4
above sum of Rs.21,75,89,528.59 within 7 days of the receipt of the GST invoice alongwith Cancelled cheque and copy of PAN card of Plaintiff.
vii. The defendant shall make payment of the balance amount of Rs.21,75,89,528.59 (Rupees Twenty-One Crore Seventy-Five Lakh Eighty-Nine Thousand Five Hundred Twenty-Eight and Paisa Fifty-Nine only), upon deducting TDS, within 7 days of receipt of the tax invoice and the completed "bank mandate form" along with cancelled cheque and PAN card of the Plaintiff. The plaintiff shall duly deposit the said amount of GST within the stipulated period and provide proof of such payment having been made, evidencing discharge of corresponding GST liability. viii. The plaintiff shall file all necessary GST returns in a timely manner to enable the Defendant get the benefits of GST input credit, if any, on the GST amount paid by defendant to the plaintiff. ix. That the above said compromise has been accepted / approved by the Board of Directors of the respective companies i.e. plaintiff and defendant. Consequent to the aforesaid terms and conditions the plaintiff is to withdraw the sum of Rs.8,16,732.41 deposited before the High Court at Calcutta by the defendant in compliance of the order dated December 04, 2023 passed in GA/1/2023 arising out of APOT – 382 of 2023 along with the 5
accrued interest. The department is to take necessary steps in disbursing the deposited amount as aforesaid along with the accrued interest in favour of the plaintiff within a period of ten days from the date of communication of this order. The individual parties to the suit, their predecessors, successors, transferees, assigns, legal representatives and/in any person claiming under them are debarred to claim any portion of the principal sum, arrear rent, tax, duties, charges, levies or otherwise against each other and not to challenge or reopen the disputes between the parties in connection with the instant suit strictly abiding by the Terms of Settlement as mentioned above. The department is directed to draw the compromise decree passed on the terms of settlement as aforesaid. The Civil Suit No. CS 77 of 1995 along with the pending applications, if any, are disposed of. Interim orders, if any are vacated.
(ANANYA BANDYOPADHYAY, J.) GH.
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.