Tantia Constructions Limited vs. Nbcc INDIA LTD

Held

The Court held that the parties are bound by the terms of the settlement agreement. The judgment explicitly states that the parties would remain bound by the afore-extracted terms of the settlement. Since the disputes have been settled, nothing further survives for adjudication in the suit. The Court decreed the suit in terms of the settlement. The Registry was directed to draw up a decree sheet accordingly. The plaintiff was also granted a refund of 50 percent of the court fees deposited, considering the suit's vintage and the settlement. All pending applications were disposed of.

Facts

The plaintiff, Tantia Constructions Limited, filed a suit against the defendant, NBCC India Ltd. The parties have since arrived at an amicable settlement. The terms of settlement, as recorded in an application under Order XXIII, Rule 3 of the CPC, include the defendant releasing a total of Rs. 1,25,83,997/- to the plaintiff, comprising Rs. 41,23,991/- against Security Deposit and Rs. 84,60,006/- as balance in the plaintiff's ledger against RA bill/withheld amount. Additionally, Rs. 5,56,740/- withheld towards GST is to be released to the plaintiff upon furnishing GST deposit receipts. The plaintiff agrees to forgo its balance claims, and this settlement is considered full and final.

Key Issues

1. Whether the parties are bound by the terms of the settlement agreement reached between them, as presented in the application under Order XXIII, Rule 3 of the CPC? The petitioner (plaintiff) argued that the parties have amicably settled their disputes and mutually agreed upon the terms and conditions outlined in the settlement application. They contended that these terms should be upheld and the suit disposed of accordingly. The respondent (defendant) did not present any arguments against the settlement, as indicated by the judgment's narrative. The court was asked to consider the settlement as a basis for decreeing the suit.