Tyre Dealer, Logistics Firm Agree To Settle ₹11.66 Lakh Suit For ₹11 Lakh; Karnataka HC Disposes Appeal on Compromise

The respondent had obtained a money decree in O.S. No. 1412/2015 for Rs. 11,66,366, with interest at 6% per annum from the date of suit until realization.

During the appeal, the parties entered into a compromise under which the dispute would be settled for Rs. 11,00,000, including Rs. 5,83,183 already deposited; the appellants agreed to pay the remaining Rs. 5,16,817 within three months of the Court recording the settlement.

The parties jointly sought disposal of the appeal in accordance with their compromise.

Order XXIII Rule 3 read with Section 151 of the Code of Civil Procedure provides the procedural basis for recording a lawful compromise and disposing of proceedings accordingly.

Section 89 CPC was invoked in the compromise petition in support of the parties’ request for court-fee refund.

The Court stated that court fee would be refunded to the respective parties “in accordance with law”.

The parties jointly presented a signed compromise petition and represented that they had amicably settled the dispute. The respondent was present and identified by counsel.

The compromise specified the total settlement amount, credited the amount already deposited, fixed a time for payment of the balance, and provided for full and final settlement of claims arising from the suit, decree, and appeal.

The Court accepted the compromise and disposed of the appeal on its terms.

It did not determine the amount or entitlement to any court-fee refund, leaving that to be dealt with in accordance with law.

The settlement amount was Rs. 11,00,000, comprising the Rs. 5,83,183 already deposited and a balance of Rs. 5,16,817 payable within three months of the settlement being recorded.

Court fee was ordered to be refunded to the respective parties in accordance with law.