Fitness First INDIA Private Limited vs. Ambience Developers & Infrastructure Private Limited

Held

The Court held that the joint compromise application filed by the parties under Order 23 Rule 3 CPC should be accepted. The Court noted that the parties had arrived at the settlement of their own free will and volition, without any undue influence or coercion. The terms and conditions of the settlement, as recorded in the application, were taken on record and the parties were directed to remain bound by them. The Court found no impediment to accepting the settlement. Consequently, the application was allowed and disposed of. In view of this settlement and the order passed on the compromise application, the main appeal and all pending applications were also disposed of as nothing further survived.

Facts

The appeal was filed by Fitness First India Private Limited (Appellant) against Ambience Developers & Infrastructure Private Limited (Respondent). The parties jointly filed an application for compromise, stating they had arrived at a comprehensive settlement facilitated by a mediator. As per the settlement, the Appellant agreed to pay the Respondent Rs. 6,16,50,000/- in full and final settlement. The Appellant also agreed to bear the Goods and Services Tax (GST) and deduct Tax Deducted at Source (TDS) from the payment. The Appellant had already drawn demand drafts totaling Rs. 6,76,75,616/-, which included GST and less TDS, and handed them over to the Respondent. The Appellant undertook to provide TDS certificates within four weeks. Both parties agreed to withdraw pending proceedings and not raise any new disputes based on the same cause of action.

Key Issues

1. Whether the Court should accept the joint compromise application filed by the parties under Order 23 Rule 3 CPC, given that they have arrived at a settlement? Petitioner/Appellant's Argument: The Appellant, through its counsel, stated that a comprehensive settlement had been reached with the Respondent. They presented a joint application under Order 23 Rule 3 CPC, detailing the terms of the settlement, including the payment of Rs. 6,16,50,000/- plus GST, with TDS to be deducted. They requested the Court to take the settlement on record and dispose of the appeal accordingly. Revenue/State's Argument: No specific argument was recorded for the Revenue/State as the matter was a dispute between two private parties who had reached a settlement. The Respondent, through its counsel, concurred with the Appellant's submissions regarding the settlement.