Mrs Swapna Bose(Mrs Swapna Sanjib Bose) vs. M/S Goyal Mg Gases Private Limited

Facts

The Petitioner, Mrs. Swapna Bose (trading as Bosco India), filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996, challenging an arbitral award dated 04.05.2018. The award was passed in favour of the Respondent, M/s Goyal MG Gases Private Limited (GMGL), concerning a Purchase Order dated 25.04.2014 for a CO2 liquification plant. The award required Bosco India to take back the plant and refund the purchase price, less depreciation, and also granted damages to GMGL. During the pendency of the challenge petition, the parties entered into a Settlement Deed on 04.12.2024. The Respondent filed an application seeking to bring the Settlement Deed on record and dispose of the petition in terms of the settlement. The Settlement Deed stipulated that Bosco India would take back the CO2 plant for a settlement price of Rs. 66,00,000/- plus 18% GST, totaling Rs. 77,88,000/-. A portion of the settlement price was paid upon execution, with the balance to be paid upon dismantling and dispatch of the plant.

Held

The Court held that the parties have entered into a Settlement Agreement dated 04.12.2024, which has been brought on record. The Settlement Deed outlines the terms for the return of the CO2 plant by Bosco India to GMGL for a settlement price of Rs. 66,00,000/- plus 18% GST, totaling Rs. 77,88,000/-. The Court noted that a portion of the settlement price has already been paid, and the balance is to be paid as per the agreement. The Court also acknowledged the parties' agreement to set aside the previous arbitral award dated 04.05.2018 and to request the appointment of a new arbitrator to decide GMGL's claims for damages arising from the plant's performance. The Court found that the parties are bound by their commitments under the Settlement Agreement. Consequently, with the consent of both parties, the Court disposed of the present petition (O.M.P. (COMM) No. 359/2018) in terms of the Settlement Agreement. The Court also appointed Mr. Nikhil Goel, Senior Advocate, as the Arbitrator to adjudicate the remaining disputes, with arbitration to be conducted under the aegis of the Delhi International Arbitration Centre (DIAC).

Key Issues

1. Whether the present petition challenging the arbitral award dated 04.05.2018 should be disposed of in terms of the Settlement Deed dated 04.12.2024 entered into between the parties, as per Order 23 Rule 3 CPC and Section 151 CPC? Petitioner's Contention: The Petitioner argued that a Settlement Deed has been executed between the parties, and an application has been filed to bring this deed on record and dispose of the petition in terms thereof. The Petitioner relies on the Settlement Deed and the application filed under Order 23 Rule 3 CPC. Respondent's Contention: The Respondent, through its application, sought to bring on record the Settlement Deed dated 04.12.2024 and for the disposal of the present Petition in terms of the said Settlement Deed. The Respondent also relies on the Settlement Deed.