Samsung India vs. Sunil Vakharia Af+

Final Order

Court:High Court, Delhi

Judge:Hon'ble Unknown Judge

Case Status:Unknown Status

Order Date:21 Apr 2006

CNR:DLHC010132192002

AI Summary

Samsung India withdrew its civil suit against Sunil Vakharia in the Delhi High Court after both parties reached a settlement. The court dismissed the suit as withdrawn, with the defendant's apology letter serving as the basis for resolution, marking the end of the electricity-related dispute between the parties.

Ratio Decidendi:

When both parties to a civil suit mutually agree to withdraw the suit and confirm that no claims exist between them, the court may dismiss the suit as withdrawn under Order 23 Rule 4 of the Code of Civil Procedure, provided the withdrawal is based on genuine settlement and not on any collusive or improper grounds.

Obiter Dicta:

The court's direction that the apology letter shall not be used by the plaintiff for initiating any proceedings against the defendant suggests judicial recognition of the protective principle that settlement documents should not be weaponized for future litigation, thereby encouraging genuine settlements.

Case Identifiers

Primary Case No:CS(OS) 1905/2002

Case Type:Civil Suit

Case Sub-Type:Injunction Suit in Electricity Matters

Secondary Case Numbers:13219/2002, DLHC010132192002

Order Date:2006-04-21

Filing Year:2002

Court:Delhi High Court

Bench:Single Judge

Judges:Hon'ble Sharma

Petitioner's Counsel

J.R. Midha

Advocate - Appeared

Respondent's Counsel

Dalip Mehra

Advocate - Appeared

eCourtsIndia AI^TM

Brief Facts Summary

Samsung India filed a civil suit against Sunil Vakharia in the Delhi High Court in November 2002 regarding an electricity-related matter. The case remained pending for nearly three years before the first hearing on July 12, 2005. During the course of litigation, the defendant provided an apology letter to the plaintiff. Subsequently, both parties reached a settlement and agreed that no claims existed between them. On April 21, 2006, the plaintiff filed an application to withdraw the suit, which was supported by the defendant. The court approved the withdrawal and dismissed the suit.

Timeline of Events

2002-11-23

Samsung India filed Civil Suit (OS) No. 1905/2002 against Sunil Vakharia in the Delhi High Court regarding an electricity-related dispute

2005-07-12

First hearing of the case in the Delhi High Court after nearly three years of pendency

Before 2006-04-21

Defendant Sunil Vakharia provided an apology letter to Samsung India as part of settlement negotiations

2006-04-21

Plaintiff filed application under Order 23 Rule 4 and Section 151 CPC to withdraw the suit; court approved the withdrawal and dismissed the suit as withdrawn

Key Factual Findings

Both parties have no claims against each other

Source: Recited from Petitioner Pleading and Respondent Pleading

Defendant provided an apology letter to the plaintiff

Source: Recited from Petitioner Pleading

The parties have reached a settlement and wish to withdraw the suit

Source: Recited from Petitioner Pleading and Respondent Pleading

Primary Legal Issues

1.Withdrawal of civil suit under Order 23 Rule 4 of the Code of Civil Procedure

2.Jurisdiction and procedure for dismissal of suit as withdrawn

3.Effect of settlement and apology letter on continuation of litigation

Secondary Legal Issues

1.Scope of Section 151 of the Code of Civil Procedure in relation to suit withdrawal

2.Binding nature of settlement agreements and apology letters

3.Estoppel and waiver of future claims based on settlement

Questions of Law

Whether a suit can be withdrawn by the plaintiff with the consent of the defendant under Order 23 Rule 4 CPC

Whether an apology letter constitutes sufficient basis for withdrawal of suit

Whether parties can mutually agree that no claims exist against each other after settlement

Statutes Applied

Code of Civil Procedure, 1908

Order 23 Rule 4

Provides the procedural mechanism for withdrawal of suit by plaintiff with or without permission of the court. Applied here to permit Samsung India to withdraw the suit.

Code of Civil Procedure, 1908

Section 151

Grants inherent powers to the court to make orders necessary for the ends of justice. Used as supplementary authority for the court's power to dismiss the suit as withdrawn.

Petitioner's Arguments

Learned counsel for Samsung India (plaintiff) filed an application under Order 23 Rule 4 read with Section 151 of the Code of Civil Procedure seeking permission to withdraw the suit. The counsel submitted that the parties had reached a settlement, with the defendant providing an apology letter, and that both parties were now left with no claims against each other. The plaintiff sought to withdraw the suit to avoid further litigation and costs.

Respondent's Arguments

Learned counsel for Sunil Vakharia (defendant) supported the withdrawal application, confirming that both parties had no further claims against each other. The defendant's counsel agreed to the settlement and the withdrawal of the suit, indicating mutual consent to end the litigation.

Court's Reasoning

The court accepted the withdrawal application based on the mutual consent of both parties and the averments made in the application. The court noted that both parties had agreed they had no claims against each other and that the defendant's apology letter had resolved the dispute. The court exercised its discretionary power under Order 23 Rule 4 and Section 151 of the Code of Civil Procedure to dismiss the suit as withdrawn. The court also imposed a condition that the apology letter would not be used by the plaintiff for initiating any proceedings against the defendant in the future, thereby protecting the defendant from potential misuse of the settlement document.

Statutory Interpretation Method:

Literal interpretation of Order 23 Rule 4 CPC regarding withdrawal of suitPurposive interpretation of Section 151 CPC to facilitate settlement and reduce litigation burden

Judicial Philosophy Indicators:

Emphasis on settlement and alternative dispute resolution over prolonged litigation
Protection of parties' settlement agreements from misuse
Judicial discretion exercised to promote finality and closure of disputes

Order Nature:Procedural

Disposition Status:Disposed

Disposition Outcome:Withdrawn

Specific Directions

1.Suit dismissed as withdrawn under Order 23 Rule 4 read with Section 151 of the Code of Civil Procedure
2.Parties have no claim against each other
3.Apology letter given by defendant to plaintiff will not be used by plaintiff for initiating any proceedings against defendant

Precedential Assessment

Persuasive (Other HC)

While this is a single judge order from the Delhi High Court dealing with a procedural matter of suit withdrawal, it provides persuasive guidance on the application of Order 23 Rule 4 CPC and the court's discretionary powers under Section 151 CPC. The order is not binding on other courts but offers useful precedent for similar withdrawal applications. The specific direction regarding non-use of apology letters for future proceedings adds a protective dimension to settlement jurisprudence.

Tips for Legal Practice

1.Practitioners should ensure that settlement agreements and apology letters are clearly documented and that mutual consent is explicitly recorded to facilitate smooth withdrawal of suits under Order 23 Rule 4 CPC.

2.Courts may impose protective conditions on settlement documents to prevent their misuse in future litigation, as demonstrated in this order, which practitioners should anticipate and address in settlement negotiations.

3.The extended pendency of cases (nearly 3 years before first hearing) highlights the importance of early settlement and ADR mechanisms to reduce litigation burden and costs for parties.

Legal Tags

Withdrawal of civil suit under Order 23 Rule 4 Code of Civil Procedure IndiaSettlement and dismissal of suit as withdrawn Delhi High Court procedureApology letter as basis for settlement and suit withdrawal IndiaMutual consent and withdrawal of civil suit Delhi High Court guidelinesSection 151 Code of Civil Procedure inherent powers suit withdrawalProtection of settlement documents from misuse in future litigation IndiaElectricity matters civil suit withdrawal and settlement Delhi High CourtProcedural aspects of suit withdrawal with defendant consent India

Disclaimer: eCourtsIndia (ECI) is not a lawyer and this analysis is generated by ECI AI, it might make mistakes. This is not a legal advice. Please consult with a qualified legal professional for matters requiring legal expertise.

Order Issued After Hearing

Purpose:

First Hearing

Listed On:

12 Jul 2005

Order Text

%21-4-2006

Present: Mr.J. R.Midha for the plaintiff. Mr.Dalip Mehra for the defendant. +CS(OS) No.1905/2002 and IA No. 12006 (To be numbered)

Learned counsel for the plaintiff has filed an application under Order 23 Rule 4 read with Section 151 of the Code of Civil Procedure whereby the plaintiff seeks permission to withdraw the suit. Let the application be numbered.

In view of the averments made in the application, the suit is dismissed as withdrawn. It is stated by learned counsel for the plaintiff as well by the defendant that the parties are now left with no claim against each other. It is stated by learned counsel for the plaintiff that the apology letter given by the defendant to the plaintiff will not be used by the plaintiff for initiating any/proceedings against the defendant.

Sharma. J

April 21, 2006 as

Signature Not Verified Digitally Signed By AMULYA Certify that the digits file and physical file have been compared and the digital data is as per the physical file and no page is filissing.

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Case History of Orders

Order(1) - 21 Apr 2006