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M/s Eveready Industries India Ltd. v. M.S.E.F.C., Chennai Region & Anr.

Civil Appeal · 2017 INSC 696Decided 2 Aug 2017
Civil Appeal No. 10006 of 2017
Justice Kurian Joseph · Justice R. Banumathi

Background

This appeal arose from proceedings before the Micro Small Enterprises Facilitation Council, Chennai Region, which had found Eveready Industries liable to a small enterprise respondent. While the matter was pending before the Supreme Court, the Court requested senior counsel Mr. R. Basant to mediate between the parties and explore a settlement.

Decision Breakdown

The mediation succeeded, and the parties filed a Joint Memo dated 31.07.2017 recording an amicable settlement under which Eveready Industries paid Rs. 61,00,000 by demand draft to the respondent, duly acknowledged by the respondent's counsel. The Supreme Court disposed of the appeal (and the connected interim application) strictly in terms of this settlement, which was made part of the judgment, and permitted the appellant to withdraw a deposit it had earlier made before the Court along with accrued interest. As the mediator had declined any remuneration, the Court directed both parties to instead pay Rs. 25,000 each to the Supreme Court Bar Clerk's Association in recognition of the mediation process that benefited them.

Lesson Learnt

Commercial disputes, even those arising from statutory dues-recovery mechanisms like MSME Facilitation Councils, can often be resolved faster and more amicably through court-assisted mediation than through prolonged litigation, and a negotiated settlement recorded before the Court becomes binding and enforceable as part of the judgment itself.

Official source (sci.gov.in)View Judgment (PDF)

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