Order passed by the State Commission on the basis of an alleged settlement between the parties cannot be held valid in the absence of a written settlement

National Consumer Disputes Redressal Commission (NCDRC): A Division Bench comprising of R.K. Agarwal, J., M. Shreesha, Member, allowed an appeal filed against the order of the Chandigarh State Commission, whereby the commission held that a settlement had arrived between the parties.

The main issue that arose before the Commission was whether the State Commission was justified in passing an order on the basis of an alleged settlement between the parties.

The Commission observed that the alleged settlement between the parties was not available in writing. The respondents clearly stated that the settlement was not in writing but the counsel for respondent had contended before the State Commission about a settlement having been entered into between the parties and the State Commission thereafter proceeded on this premise. The Commission further observed that the counsel for respondents sought time to produce the written agreement setting out terms and conditions of settlement, however, no such agreement was produced.

The Commission held that in the absence of a written agreement the State Commission could not have passed an order which was based on the existence of the alleged settlement between the parties. The order of the State Commission was set aside and the appeal was allowed. [Sumit Kumar v. Silver City Housing and Infrastructure Ltd., 2018 SCC OnLine NCDRC 414, order dated 26-10-2018]

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