Court Disposes of Appeal and Execution Proceedings Upon Mutual Settlement of Claims Through Mediation

The Appellant, Smt. Ruchika Walia, filed an appeal against the Respondent, Shri Nitin Garg, regarding a commercial dispute involving unpaid invoices and liabilities

During the pendency of the appeal, the parties were referred to the Delhi High Court Mediation & Conciliation Center

On May 25, 2026, the parties entered into a Settlement Agreement to resolve all pending civil and criminal liabilities

Prior to the settlement, the Appellant had deposited ₹10,00,000 with the Registry of the High Court

The matter came before the Division Bench for the recording of the settlement and disposal of the appeal

1. Whether the terms of the Settlement Agreement dated May 25, 2026, are valid, lawful, and enforceable for the disposal of the appeal

2. Whether the amount deposited with the Registry can be released to the Respondent in terms of the settlement

The court applied the principles of Alternative Dispute Resolution (ADR) under Section 89 of the Code of Civil Procedure, 1908, and the Delhi High Court Mediation and Conciliation Rules

The court examined the validity of the contract under the Indian Contract Act, 1872, ensuring the settlement was reached voluntarily, without undue influence, and for lawful consideration

Furthermore, established procedural law allows the court to dispose of an appeal and execution proceedings when a full and final settlement renders the dispute infructuous

The Court reviewed the Settlement Agreement and found the terms to be "valid and capable of enforcement"

The court observed that the parties agreed to a total settlement of ₹19,50,000, of which ₹10,00,000 was already in the court's custody

The court analyzed the voluntary nature of the agreement, noting that the terms were explained to the parties in their vernacular and that both parties undertook to be bound by the conditions

Because the settlement addressed all existing liabilities—not limited to the invoices in question—the court reasoned that no further dispute survived for adjudication

Consequently, the court exercised its authority to direct the Registry to facilitate the transfer of funds and to close the execution proceedings pending in a lower court

It held that the parties are irrevocably bound by the settlement

The Court directed the Registry to release the deposited ₹10,00,000 along with accrued interest to the Respondent

The Appellant was ordered to pay the remaining ₹9,50,000 within three months

Finally, the Court ordered that Execution Petition No. 69/2025 pending before the Commercial Court also stands disposed of