Case Note & Summary
The appeal was filed by M/s. Bharat Heavy Electricals Ltd against M/s. Delkon (India) Pvt Ltd and the Sole Arbitrator, challenging an order dated 22.07.2018 in OP No.107 of 2008. During the pendency of the appeal, the parties, exercising prudence, entered into a Joint Memorandum of Compromise on 31.10.2025 under the aegis of the Madras High Court Mediation and Conciliation Centre. Subsequently, they entered into an Addendum in November 2025, which was an extension of the earlier compromise. Both documents were recorded by the Court. The Court dismissed the appeal as settled out of court, ordered refund of court fees to the appellant in accordance with the rules, and closed the connected miscellaneous petition with no costs.
Headnote
A) Arbitration - Settlement out of Court - Compromise Decree - The parties entered into a Joint Memorandum of Compromise under the aegis of the Madras High Court Mediation and Conciliation Centre on 31.10.2025 and an Addendum in November 2025. The Court recorded the compromise and dismissed the appeal as settled out of court, granting refund of court fees as per rules. (Paras 1-3)
Issue of Consideration
Whether the appeal should be dismissed as settled out of court in view of the Joint Memorandum of Compromise and Addendum entered into by the parties.
Final Decision
Appeal dismissed as settled out of court. Appellant entitled to refund of court fees as per rules. Connected miscellaneous petition closed. No costs.
Law Points
- Settlement out of court
- Compromise decree
- Refund of court fees
Case Details
2026 LawText (MAD) (02) 279
OSA No. 48 of 2020 and CMP No.1639 of 2020
C.V. Karthikeyan, K. Kumaresh Babu
Mr. S. Aravindan for M/s. Fox Mandal and Associates (for appellant), Mr. S.S. Rajesh for R1
M/s. Bharat Heavy Electricals Ltd
M/s. Delkon (India) Pvt Ltd and Justice A. Ramamurthy (Retd) (Sole Arbitrator)
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Nature of Litigation
Appeal under Clause 15 of Letters Patent Act read with Order XXXVI Rule 9 of O.S.Rules to set aside order dated 22.07.2018 in OP No.107 of 2008.
Remedy Sought
Appellant sought to set aside the order dated 22.07.2018 passed in OP No.107 of 2008.
Filing Reason
Challenge to an order in an original petition (OP No.107 of 2008).
Previous Decisions
Order dated 22.07.2018 in OP No.107 of 2008.
Issues
Whether the appeal should be dismissed as settled out of court.
Submissions/Arguments
Parties entered into Joint Memorandum of Compromise and Addendum, seeking dismissal of appeal as settled.
Ratio Decidendi
When parties settle a dispute out of court and file a compromise, the court records the settlement and dismisses the appeal as settled, granting refund of court fees as per rules.
Judgment Excerpts
Exercising much prudence, the parties had entered into initially a Joint Memorandum of Compromise which was entered under the aegis of the Madras High Court Mediation and Conciliation Centre on 31.10.2025.
Both the Joint Memorandum of Compromise and the Addendum are recorded and should be part of the Judgment. The Appeal stands dismissed as settled out of Court.
In view of the fact that the Appeal has been dismissed as settled out of Court, the appellant is entitled for refund of the Court fees in accordance with the Rules.
Procedural History
The appeal was filed challenging an order dated 22.07.2018 in OP No.107 of 2008. During pendency, parties settled through mediation on 31.10.2025 and entered an Addendum in November 2025. The Court dismissed the appeal as settled on 13.02.2026.
Acts & Sections
- Letters Patent Act: Clause 15
- Original Side Rules: Order XXXVI Rule 9
