Bombay High Court

SHRI.MANOHAR J. CHANDWANI.versusSMT.HARIBAI TILUMAL THADANI.

Decided: 4 March 2026
Disposal: RULE ABSOLUTE
Bench: RAJESH S PATIL

Holding

The court held that the MOU constitutes a valid settlement and therefore the earlier judgments are quashed.

Summary

In Writ Petition No. 10 WP/1303/1999, the petitioner and respondent submitted a Memorandum of Understanding (MOU) dated 29‑10‑2025, which they both signed, seeking to settle the dispute out of court. The court accepted the MOU as a binding undertaking and, relying on Paragraph 5 of the MOU, ordered that the settlement be deemed final. Consequently, the court quashed and set aside the earlier judgments dated 26‑11‑1998 in Civil Appeal Nos. 933/1985 and 1025/1994. The writ petition was thereafter disposed of in accordance with the settlement. The decision underscores the High Court’s discretion to enforce parties’ settlement agreements and to vacate prior orders when a valid settlement is reached.

Issues considered

Whether a signed Memorandum of Understanding can be treated as a binding undertaking to the court for settlement of the dispute.
Whether the earlier judgments can be quashed and set aside on the basis of the parties’ settlement.

Subjects

Memorandum of Understanding
settlement
quash
civil appeal
writ petition
High Court

Judgment

2026:BHC-AS:10843



                    Diksha Rane                                               10 WP 1303 1999.doc




                                    IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                            CIVIL APPELLATE JURISDICTION

                                              10 WP/1303/1999
                                                     [Civil]
                                      SHRI.MANOHAR J. CHANDWANI.
                                                       VS
                                     SMT.HARIBAI TILUMAL THADANI.
                                                   ------------
                    Adv. R. M. Haridas i/b. Adv. Pratik B. Rahade for petitioner.
                    Adv. Sagar Kursija for respondent.
                                                   ------------

                                                   CORAM :         RAJESH S. PATIL, J.

                                                   DATE    :       4 MARCH 2026.

                    P.C. :

                    1)            Both counsel have jointly tendered photocopy of the

                    Memorandum of Understanding (MOU), dated 29/10/2025, for

                    settlement of dispute out of Court. The same is taken on record and

                    marked “X” for identification purpose.

                    2)            Both counsel submit that their respective clients have signed

                    the said MOU. They have identified the signatures of their clients on

                    the said MOU. For ease of reference, scanned copy of the said MOU,

                    dated 29/10/2025, is reproduced herein below:-




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Diksha Rane       10 WP 1303 1999.doc




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         Diksha Rane                                               10 WP 1303 1999.doc




         3)            The submissions made in the said MOU are accepted as an

         undertaking given to this Court. All undertakings are accepted. In

         view of the settlement arrived between the parties and more

         specifically in view of Paragraph No.5 of the MOU, Rule is made

         absolute.

         4)            The impugned judgment and order dated 26/11/1998 passed

         in Civil Appeal No.933/1985 and Civil Appeal No.1025/1994 is

         hereby quashed and set aside.

         5)            The Writ Petition is disposed of accordingly.

                                                                       (Rajesh S. Patil, J.)




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Signed by: Diksha Rane
Designation: PS To Honourable Judge
Date: 05/03/2026 19:00:19

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