Ms Dhauladhar Builders PVT LTD vs. Ms Sterling And Wilson LTD

Held

The Court held that the joint application filed under Order 23 Rule 3 CPC, being signed by both the contesting litigants and their respective counsel, was valid and in compliance with the procedural requirements. The Court found that the terms of the compromise, including the payment of Rs. 16,16,105/- as full and final settlement and the payment of Rs. 1,53,440/- towards GST, were agreed upon by both parties. Consequently, the Court decreed the suit as compromised. The Court also directed the refund of court fees to the plaintiff and disposed of all pending applications. The judgment explicitly stated that if the defendant breaches the terms of the compromise decree, the suit shall revive.

Facts

This matter concerns Civil Suit No. 51 of 2017 before the Himachal Pradesh High Court, filed by M/s Dhauladhar Builders Pvt. Ltd. (Plaintiff) against M/s Sterling and Wilson Ltd. (Defendant). During the pendency of the suit, both parties jointly filed an application under Order 23 Rule 3 of the Code of Civil Procedure (CPC) for compromise. The application was signed by the litigants and their respective counsel. As per the compromise, the defendant tendered a sum of Rs. 16,16,105/- to the plaintiff, representing a full and final settlement of outstanding amounts. Additionally, the defendant was directed to pay Rs. 1,53,440/- towards GST by cheque within fifteen days of receiving proof of GST deposit.

Key Issues

1. Whether the joint application filed by the parties under Order 23 Rule 3 CPC, duly signed by the litigants and their counsel, is valid for the compromise of the suit? Petitioner/Plaintiff's Arguments: The plaintiff contended that the joint application, properly executed and signed by both parties and their counsel, represents a genuine and binding compromise. They relied on the provisions of Order 23 Rule 3 CPC, which permits suits to be compromised by the parties. Revenue/Defendant's Arguments: The defendant, through their counsel, agreed to the terms of the compromise as presented in the joint application. They acknowledged the payment of Rs. 16,16,105/- as full and final settlement and agreed to the condition of paying Rs. 1,53,440/- towards GST upon proof of deposit. No specific legal arguments were recorded for the defendant other than their consent to the compromise.