Ayush Gupta & Anr. vs. Sunil Chanana & Anr.

Held

The Court did not decide the issue of whether the settlement amount was inclusive or exclusive of GST. Instead, the Court noted that the original order was passed by a different bench. Therefore, subject to the orders of the Hon'ble Chief Justice, the matter was listed for 21.04.2023 before the bench that had heard the case on 15.12.2022. No finding was reached on the interpretation of the settlement amount, and no operative directions were issued by the current bench other than to relist the matter. The issue of whether the settlement amount was inclusive or exclusive of GST remains undecided by this bench.

Facts

This matter comes before the Delhi High Court concerning an application for clarification of a settlement amount. The respondent sought to clarify whether the settlement amount agreed upon was inclusive of Goods and Services Tax (GST) or if GST was payable in addition to the agreed amount. The appellant's counsel contended that the settlement amount was indeed inclusive of GST. Due to the original order being passed by a different bench, the current bench, subject to the Chief Justice's orders, listed the matter for further hearing before the bench that originally heard the case.

Key Issues

1. Whether the settlement amount agreed upon in the prior proceedings was inclusive of Goods and Services Tax (GST) or exclusive of GST, requiring additional payment. The respondent argued that the settlement amount was exclusive of GST, and GST was payable over and above the agreed sum. The appellant argued that the settlement amount was inclusive of GST, meaning no additional GST was payable. The specific provision of GST law or circular governing the interpretation of settlement amounts in this context was not explicitly mentioned in the provided text.