Dezinetree Projects PVT. LTD. vs. Spokes Digital Inc And Anr

Held

The Court accepted the settlement agreement arrived at between the parties. The agreement stipulated that the second party would pay the first party Rs. 12,00,000/- (exclusive of applicable GST) in full and final settlement. The payment was to be made in installments, with the final installment including any applicable GST. Upon receipt of the entire settlement amount, both parties agreed to withdraw all pending proceedings, including the present appeal. The Court took the settlement agreement on record and disposed of the appeal in terms of this agreement. The reasoning is based on the parties' mutual consent to resolve the dispute amicably, thereby obviating the need for the Court to adjudicate on the merits of the original dispute. The ratio decidendi is that when parties to an appeal reach a lawful settlement, the Court will record it and dispose of the appeal accordingly, promoting the principle of 'buy peace'.

Facts

The appellant, Dezinetree Projects Pvt. Ltd., filed an appeal under Section 96 of the Code of Civil Procedure, 1908, against a judgment dated July 16, 2024, passed by the learned district judge in CS(COMM) 121/2023. The respondents are Spokes Digital Inc and another. The parties informed the Court that they had reached a settlement agreement dated September 19, 2026. The settlement involved the second party, Returnonweb Consulting Services Pvt. Ltd., paying the first party, Dezinetree Projects Pvt. Ltd., a total sum of Rs. 12,00,000/- (exclusive of applicable GST) in full and final settlement of all claims. The agreement also stipulated a payment schedule and the withdrawal of pending proceedings upon receipt of the entire settlement amount.

Key Issues

1. Whether the settlement agreement dated 19.09.2026, entered into between the parties, is valid and binding, and if so, should the appeal be disposed of in terms of this agreement? (Question of law and fact, turning on principles of contract law and civil procedure). Petitioner's Contention: The petitioner, through its counsel, submitted that the matter has been settled as per the agreement dated 19.09.2026. They presented the terms of the settlement, including the settlement amount, payment schedule, mode of payment, and the agreement to withdraw pending proceedings. They sought for the appeal to be disposed of in terms of this settlement. Revenue's Contention: The judgment does not record any specific arguments or contentions from the revenue or the second respondent. The order indicates that counsel for the parties submitted that the matter has been settled.