INDIA Law and Practice Contributed by: Anuradha Mukherjee, Omar Ahmad, Vikram Shah and Soumya Dasgupta, Cyril Amarchand Mangaldas
For procedural orders in the nature of adjourn- ments, recording statements of the parties per- taining to out-of-court settlement and in certain kinds of cases where extensive appreciation of facts, evidence or law is not required, judges generally dictate and pronounce such judg- ments or orders in open court during the course of the hearing. In other cases, general practice is that the judges reserve the order and then pro- nounce it in open court on a subsequent date. 7.8 General Timeframes for Proceedings Commercial disputes are governed by the CCA, which does not provide any timeframe for the disposal of a commercial suit. However, Order XV-A Rule 3 of the CPC provides that the court shall ensure that the arguments are closed no later than six months after the date of the first case management hearing. Section 14 of the CCA requires the commercial appellate courts to endeavour to dispose of appeals within six months. Furthermore, Sec- tion 34(6) (which is a directory provision) of the Arbitration and Conciliation Act, 1996 (Arbitra- tion Act) requires the court to dispose of Section 34 petitions (for setting aside an arbitral award) expeditiously and in any event within one year from the date on which notice is served upon the respondent.
compromise petition will not result in the agree- ment being enforced: the court has to pass a decree in terms of the agreement or compromise arrived at between the parties, which can then be executed. However, to obtain such a decree, such compromise or agreement cannot be void or voidable under the ICA. 8.2 Settlement of Lawsuits and Confidentiality Confidentiality of the Settlement of Lawsuits The terms of a settlement agreement can remain confidential if the parties so desire. In some cases, settlement agreements are filed in courts under sealed cover. However, if a party to the settlement agreement wishes to make it into a decree of the court, it is likely that the terms of the settlement agreement may form part of the decree, and thus the settlement might not remain confidential. Confidentiality of Settlement by Arbitration, Conciliation or Mediation Court-referred mediation settlements are con- fidential. However, while arbitration and conciliation pro- ceedings enjoy confidentiality under Sections 42A and 75 of the Arbitration Act, respectively, the award will require disclosure for enforce- ment, even if it was arrived at by settlement. 8.3 Enforcement of Settlement Agreements Settlement in Case of a Suit Parties to a suit can settle the underlying dis- pute by entering into a settlement agreement. However, in anticipation that the parties may renege on the settlement, the parties can seek for the settlement agreement to be made into a decree of the court (“consent decree”) of which execution can then be sought, in order to ensure
8. Settlement 8.1 Court Approval
No court approval is required for a settlement between the parties; parties to a suit can settle the underlying dispute at any time. If the parties wish any settlement agreement signed between them to be made into a decree of the court, they can file a compromise petition under Order XXIII Rule 3 of the CPC. The mere filing of the
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