Commercial appeals are disposed of in terms of compromise, with the deposited settlement amount released to the respondents.

The respondents sued to recover a security deposit in Com.O.S. No. 504/2024.

The Commercial Court partly decreed the suit for ₹40 lakh with interest and dismissed the appellant’s counterclaim.

The respondents had also obtained a partial decree in a separate suit, Com.O.S. No. 1713/2024, concerning GST amounts.

The appellant appealed against the decree and dismissal of the counterclaim.

During the appeals, the parties filed a compromise petition under Order XXIII Rule 3 CPC, agreeing to settle all claims in both suits for ₹40 lakh in addition to ₹60 lakh already paid.

The appellant had deposited the further ₹40 lakh pursuant to an interim order.

1. Whether the parties’ compromise could be accepted and the appeals disposed of in its terms

2. Whether the deposited ₹40 lakh should be released to the respondents and the appellant granted a refund of court fees

Order XXIII Rule 3 of the Code of Civil Procedure, 1908, permits a court to record a lawful compromise in writing and signed by the parties and to pass a decree in accordance with it.

Section 13(1-A) of the Commercial Courts Act, 2015, provides for appeals from specified judgments and orders of Commercial Courts.

The Court also directed refund of court fees in accordance with the relevant rules; it cited no precedent.

The parties appeared before the Court, were identified by counsel, and confirmed that they had entered into the compromise voluntarily, without coercion, undue influence or misrepresentation.

The agreed payment settled the claims in both suits, with the deposited ₹40 lakh forming the balance of the settlement after the earlier ₹60 lakh payment.

In light of the parties’ consent and the stated finality of the settlement, the Court accepted the compromise, directed release of the deposit to respondent No. 2, and ordered the court-fee refund subject to the applicable rules.

It directed that ₹40 lakh, together with any interest accrued, be transmitted to respondent No. 2 upon submission of bank details; the parties have no further claims against each other.

The appellant is entitled to a refund of court fees in accordance with the relevant rules.