After 28-Year Recovery Dispute, Karnataka HC Directs ₹3.65 Lakh Deposit Plus Interest To Late CA’s Son As Full Settlement

The plaintiff, H.A.K. Rao, sued the defendants for recovery of ₹13,44,018. The Trial Court partly decreed the suit, holding the defendants jointly and severally liable for ₹1,14,864 with interest; the plaintiff appealed and the defendants filed a cross-objection.

During the appeal, the parties settled their disputes at the Karnataka Mediation Centre. Under the settlement, the plaintiff’s legal representatives agreed to accept ₹3,65,792, together with accrued interest on a sum deposited in a fixed deposit, in full and final settlement of the claims in the suit. The parties also agreed that they had no further claims arising from the same cause of action.

Section 89 of the Code of Civil Procedure, 1908, read with Rules 24 and 25 of the Karnataka Civil Procedure (Mediation) Rules, 2005, provides the framework for recording and giving effect to a mediated settlement.

Section 96 CPC provides for an appeal from an original decree, while Order XLI Rule 22 CPC permits a respondent to file a cross-objection.

The judgment does not cite or apply any judicial precedents; it gives effect to the parties’ signed settlement.

The Court recorded that the parties and their counsel had signed the Memorandum of Settlement and that the parties sought orders in its terms.

The defendants’ counsel also stated that the defendants had no objection to releasing the deposited amount to appellant No. 1(a). On that basis, the Court directed release of the deposit, with accrued interest, to that appellant after verification and disposed of both proceedings in accordance with the settlement.

It directed the Registry, after due verification, to release the deposited ₹3,65,792 and accrued interest to appellant No. 1(a), and directed that a decree be drawn in terms of the settlement. All pending applications were also disposed of.