Ramesh Chand Kathuria And Another @APPELLANT@Hash M/S Trikuta Chemicals Pvt. Ltd And Another

Instant application under Section 151 of Code of Civil Procedure has been filed by and on behalf of the parties for taking on record the Settlement Agreement entered into between the parties with a direction to the 1st Additional District Judge, Jammu, to release the amount of FDR along with interest accrued up-to-date lying in his Court in favour of Sh. Ramesh Chand Kathuria and Sh. Ashish Jain in the ratio of 71:29 as per Settlement Agreement dated 08.10.2018.

Brief facts leading to the filing of the instant application are that a Memorandum of Understanding was executed on 18.03.2008 between M/s Trikuta Chemicals (P) Ltd. and M/s J.K.Alloys, Jammu, through Shri Nandan Kuthiala, R/O Canal Road, Jammu, on one side and Shri Ramesh Chand Kathuria R/O 1/11, Shanti Niketan, New Delhi and Shri Ashish Jain R/O B-243, Derawala Nagar, Delhi, on the other side. The dispute arose between the parties in relation to Memorandum of Understanding dated 18.03.2008, which became subject matter of arbitration under J&K Arbitration and Conciliation Act, 1997. Shri K.K.Gupta, retired Judge of this Court, was appointed as an Arbitrator, who gave his Award on 27.01.2012. As a result of the said award, an amount of Rs.50,50,000/- was to be refunded by M/s Trikuta Chemicals and J.K.Alloys to Shri Ramesh Chand Kathuria and Shri Ashish Jain within thirty days of the date of award failing which simple interest @10% was to be paid till payment.

Feeling aggrieved of, both the parties contested the award. The awarded amount was deposited by M/s Trikuta Chemicals (P) Ltd. and J.K.Alloys vide Bankers Cheque No.908192 dated 29.08.2012 drawn on State Bank of India, Purani Mandi, Jammu, along with interest upto 29.08.2012 amounting to Rs.53,44,584/- before the learned 1st Additional District Judge, Jammu, which was converted into FDR No.2501133 dated 06.09.2012 of Oriental Bank of Commerce, Last Morh, Gandhi Nagar, Jammu, pledged to the learned 1st Additional District Judge, Jammu. The matter went up to Full Bench of this Court on the issue of jurisdiction which was decided on 31.03.2015 holding that the High Court would have the jurisdiction. The petition filed by M/s Trikuta Chemicals (P) Ltd. and J.K.Alloys before the learned 1st Additional District Judge, Jammu, was transferred to this Court. Both the petitions were heard together by this Court and came to be disposed of by a common judgment on 17.07.2018 upholding the Arbitration Award passed by the learned Arbitrator.

Learned counsels for the parties submit that in terms of the aforesaid judgment, both the parties have held negotiations and decided to amicably resolve all their claims against each other and the inter se dispute amongst them arising out of and/or in connection with Memorandum of Understanding executed on 18.03.2008. Parties have, inter alia, agreed not to litigate the matter any further and have also agreed that M/s Trikuta Chemicals (P) Ltd. and J.K.Alloys shall pay a lumpsum amount of Rs.90,00,000.00 (Rupees Ninety Lacs only) to Shri Ramesh Chand Kathuria and Shri Ashish Jain in the ratio of 71% to Shri Ramesh Chand Kathuria and 29% to Shri Ashish Jain, in full and final settlement of all claims of Shri Ramesh Chand Kathuria and Shri Ashish Jain against M/s Trikuta Chemicals (P) Ltd. and J.K.Alloys, present and future, arising out of and/or in connection with Memorandum of Understanding executed on 18.03.2008. The terms of the settlement arrived at are set out in detail in the Settlement Agreement dated 08.10.2018 signed and executed by the parties.

It is contended on behalf of the learned counsel for the applicants that the settlement agreement dated 08.10.2018 has been executed between the parties voluntarily, and it has been entered into without any undue influence or coercion. It is further contended that upon payment of the settlement amount of Rs.90,00,000/- in the manner as stated in the Settlement Agreement dated 08.10.2018, neither party will have any claim against the other and all disputes between them will come to an end. The applicants further contend that the settlement arrived at between the parties is in the interest of justice, and this Court may be pleased to take the Settlement Agreement on record and direct the learned 1st Additional District Judge, Jammu, to release the said FDR along with accrued interest up-to-date in favour of Sh. Ramesh Chand Kathuria and Sh. Ashish Jain in the ratio of 71: 29, and whatever will be the difference between Rs.90,00,000/- amount as per Settlement Agreement and amount of FDR on release including interest accrued till date of release will be paid by M/s Trikuta Chemicals (P) Ltd. and J.K.Alloys to Sh. Ramesh Chand Kathuria and Ashish Jain in the ratio of 71:29 by cheque within one week of the release of FDR.

In view of the settlement arrived at between the parties and at request, instant application is allowed. Settlement Agreement dated 08.10.2018 entered into between the applicants is taken on record and learned 1st Additional District Judge, Jammu, is directed to release the amount of FDR as mentioned above along with interest accrued up-to-date in favour of Sh. Ramesh Chand Kathuria and Sh. Ashish Jain in the ratio of 71:29 as per the Settlement Agreement dated 08.10.2018. It is further provided that whatever will be the difference between Rs.90,00,000/- amount as per Settlement Agreement and amount of FDR on release including interest accrued till date of release will be paid by M/s Trikuta Chemicals (P) Ltd. and J.K.Alloys to Sh. Ramesh Chand Kathuria and Ashish Jain in the ratio of 71:29 by cheque within one week of the release of FDR as mentioned in the Settlement Agreement.

It seems that in terms of Order dated 17.07.2018 passed by this Court in AA No.12/2012 and AA No.04/2016, record was directed to be sent down/returned, whereas it is contended on behalf of the learned counsels for the parties that said record pertains to this Court, therefore, it was not required to be sent down/returned. Registrar Judicial to see if the same has been sent to the Court below then it be called for after the release of the amount as directed above.

Application disposed of as above.