To settle a money dispute without further proceedings.
This Settlement Agreement is made at Chandigarh on 2 April 2026 between:
Ramesh Kumar, acting through its director, Mr Ramesh Kumar, of House No. 214, Sector 15-A, Chandigarh 160015 (the First Party); and
Suresh Enterprises, acting through its partner, Mr Suresh Kumar, of SCO 42, Sector 34-A, Chandigarh 160022 (the Second Party).
1.1 The First Party supplied fabrication work to the Second Party between February and May 2026 against invoices totalling Rs 6,40,000. The Second Party says some of the work was defective and has withheld payment.
1.2 The First Party claims ₹6,40,000 (Rupees Six Lakh Forty Thousand only) from the Second Party (the Claimed Amount). The Second Party disputes, or does not accept, the whole or part of that claim. The parties wish to end the dispute without further proceedings, on the terms below.
1.3 A proceeding about this dispute is pending: Civil Suit No. 412 of 2026 in the court of the Civil Judge (Senior Division), Chandigarh (the Pending Case).
2.1 The Second Party shall pay the First Party ₹5,00,000 (Rupees Five Lakh only) (the Settlement Amount) in full and final settlement of the dispute and of the Claimed Amount.
2.2 The Settlement Amount is to be paid in a single payment, by bank transfer to the account of the First Party, the details of which the First Party has given in writing, without any deduction.
2.3 The Second Party shall pay the whole Settlement Amount in a single payment on or before 1 April 2026.
3.1 If the Second Party fails to pay any amount within 7 days of its due date, only the unpaid part of the Settlement Amount remains payable, and the First Party may recover it.
4.1 On receipt of the whole Settlement Amount, the First Party releases the Second Party from every claim arising out of the dispute described in clause 1, whether or not it has been made.
4.2 Each party also gives up every claim and counterclaim it has against the other arising out of that dispute.
4.3 This release does not cover a breach of this Agreement, or any dealing between the parties that is not part of the dispute described in clause 1.
4.4 The parties will jointly apply to the court in the Pending Case to record this settlement and dispose of the Pending Case in its terms. Where the law lets that case be compromised or compounded, the First Party will join in doing so once the whole Settlement Amount is received. Each party will bear its own costs of the Pending Case unless the court orders otherwise.
5.1 This Agreement is a compromise. Nothing in it is an admission by either party of any liability, or that any claim is true.