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2014 (8) TMI 1124 - SUPREME COURTArbitration and Conciliation - awards challenged - Held that:- Here is a case where arbitral awards were given in favour of the Appellant way back in April and June, 2006. However, the Appellant is yet to reap the benefits thereof. Respondent No. 1 challenged these awards by filing applications Under Section 34 of the Act. When these proceedings were pending, the Respondents themselves came out with the proposal to negotiate and try to amicably settle the matters, keeping in view the otherwise laudable decision taken by PWD to settle such disputes as is clear from the letter dated 02.08.2008. Negotiations took place thereafter. Though the Appellant had agreed to forgo substantial part of the award in terms of interest etc., the talks failed at that time as the Respondents wanted 10% reduction in the principal amount as well, whereas the Appellant was conceding to give up only 5% of the principal amount. Be, as it may, the Appellant agreed to give further concessions in the Court when the matter came on 09.04.2011 vide his 3 memos dated 6.4.2011 filed on that date. These memos show that the Appellant had given the said offer due to the acute financial crisis he was suffering from as he wanted to satisfy his creditors including his bankers to whom he owed substantial amounts. Alas, even after the settlement was fructified, resulting into passing of agreed orders, it has resulted into legal tangle even thereafter, and the Appellant has not been able to get even the said agreed amount. We are, therefore, of the opinion that the High Court was not justified in setting aside the consent decree passed by the learned District Judge. Such a consent decree operates as an estoppel and was binding on the parties from which the Respondents could not wriggle out by taking an after thought plea that its lawyer was not authorised to enter into such a settlement. These appeals are accordingly allowed. The impugned judgment of the High Court is set aside and the consent decrees dated 28.04.2011 passed by the trial court are restored.
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