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Saraswathi (Dead) by LRs. & Ors. vs. S.A. Palanisamy & Ors.

Not available · 2024 INSC 153Decided 7 Feb 2024
Not available
Justice C.T. Ravikumar · Justice Rajesh Bindal

Background

The appeal arose from a civil dispute in which the Madras High Court had set aside a 1994 trial court decree that was originally in favour of the appellants (Saraswathi and others). While the appeal was pending before the Supreme Court, the parties, who are close relatives, worked out a mutual settlement. They executed a formal Settlement Agreement dated 5 October 2023 and appeared before the Court through virtual mode to confirm the settlement, pursuant to an earlier Supreme Court order encouraging them to resolve the matter amicably.

Decision Breakdown

The Supreme Court noted that the parties had signed the Settlement Agreement before the Trial Court as directed, and had fulfilled the financial obligations under it. One remaining procedural item, handing over a "No Objection Certificate" under Clause 6 of the settlement, needed a short time extension, which the Court granted (two months), with the respondents' counsel's consent. Given that the parties were close relatives who had genuinely resolved their dispute, the Court set aside both the High Court's judgment and the original trial court decree, and directed that a final decree be drawn strictly in terms of the Settlement Agreement. The pending execution proceedings before the trial court were closed as a result.

Lesson Learnt

Even after years of litigation and multiple rounds of appeal, parties, especially family members, remain free to settle their disputes by mutual agreement at any stage, and courts will readily give legal effect to such settlements rather than insisting on a contested judgment.

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

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