Facts of the Case

This is a private commercial recovery-of-possession appeal, not a GST case. Ramesh Bahl (HUF), through Smt. Sakshi Bahl, had sued Indu Bala Gupta before the Commercial Court, Tis Hazari, Delhi, for recovery of possession, arrears of rent, mesne profits, damages and injunction over two shops in Old Rajinder Nagar, New Delhi. The Commercial Court decreed the suit on 22.10.2024, awarding Rs. 19,05,200 in arrears of rent and Rs. 6,47,568 in damages/mesne profits, in each case directing that the defendant (Gupta) would also be liable to pay GST on the amount — GST is mentioned here only as an incidental component of the money decree, not as the subject of adjudication. Gupta appealed under Section 13 of the Commercial Courts Act, 2015. During the appeal, the parties were referred to mediation, which led to a settlement dated 11.04.2026.

Issues Involved

  1. Whether the settlement arrived at through mediation should be accepted and substituted for the decree under appeal.

Petitioner's Arguments

  • The Appellant (Indu Bala Gupta) had challenged the Commercial Court's decree on merits, but ultimately joined the settlement agreement dated 11.04.2026 along with the Respondent.

Respondent's Arguments

  • The Respondent (Ramesh Bahl HUF) agreed to the settlement, under which Rs. 21 lakh would be paid by the Appellant, with Rs. 3 lakh already paid and the balance to be cleared by December 2026, in place of the amounts decreed by the Commercial Court.

Court Order / Findings

  • The Delhi High Court (Justice Prathiba M. Singh and Justice Madhu Jain) found the settlement terms valid and legal, with no impediment to accepting them.
  • The suit was directed to stand decreed in terms of the settlement agreement instead of the original decree; the appeal was disposed of.
  • Both parties were granted a full refund of court fees, subject to paying Rs. 50,000 each to the mediator.

Important Clarification

GST appears in this record only because the original Commercial Court decree required the tenant to also pay GST on arrears of rent and mesne profits — a routine feature of commercial rent recovery decrees, not a legal ruling on GST. This order itself is about accepting a mediated settlement in a commercial appeal and has no independent GST holding.

Sections Involved

  • Commercial Courts Act, 2015 — Section 13 (appeal).
  • Code of Civil Procedure, 1908 — Section 96.
  • Negotiable Instruments Act, 1881 — Section 138 (referenced as one of the proceedings covered by the settlement).

Decision – In Favour of

Disposed of by mutual settlement — the appeal was resolved on agreed terms between the parties rather than by adjudication on merits; this outcome has no bearing on GST law.

Case Details

Court: High Court of Delhi at New Delhi
Case No.: RFA(COMM) 227/2025
Coram: Justice Prathiba M. Singh and Justice Madhu Jain
Date of Order: 13.04.2026

Link to Download the Order

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