Mohd Shah Fahad vs Raghav Nathani - Settlement Enforcement
Summary
Delhi High Court allowed an appeal in RFA(COMM) 27/2024, quashing a Commercial Court decision that had wrongly dismissed a suit despite the parties having filed a settlement agreement. The High Court ordered CS(Comm) 3898/2021 to be settled in terms of the September 2023 settlement agreement, which prohibits Defendant from using the 'Classio' trademark.
What changed
The Commercial Court had erroneously refused to pass a consent decree based on the settlement agreement dated 27 September 2023 and instead proceeded to dismiss the suit on merits. The High Court found the settlement agreement to be enforceable and, at the parties' joint request, set aside the impugned judgment. The settlement terms prohibit Defendant No. 1 from using, selling, or advertising under the 'Classio' mark or any identical/similar trademark in any manner.
Parties to commercial litigation should note that courts may enforce out-of-court settlements without converting them into formal consent decrees. The High Court's decision clarifies that where parties agree ad idem on settlement terms, appellate courts can directly enforce those terms rather than remanding for further proceedings. The settlement agreement takes immediate effect upon this order.
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Mohd Shah Fahad vs Raghav Nathani & Anr on 23 March, 2026
Author: C. Hari Shankar
Bench: C. Hari Shankar
$~7
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ RFA(COMM) 27/2024
MOHD SHAH FAHAD .....Appellant
Through: Mr. Pulkit Thareja, Adv.
versus
RAGHAV NATHANI & ANR. .....Respondents
Through: Respondent 1 in person.
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
HON'BLE MR. JUSTICE OM PRAKASH SHUKLA
ORDER (ORAL) % 23.03.2026
C. HARI SHANKAR, J. 1. This is a peculiar case in which, though the appellant and the
respondents, who were litigating before the learned Commercial
Court, had filed a settlement agreement and requested the learned
Commercial Court to pass a consent decree in terms of the settlement
agreement, the learned Commercial Court refused to do so and has
proceeded to dismiss the suit.
- The appellant is represented through Mr. Pulkit Thareja and Respondent 1, who is the only contesting respondent, are present in person. They pray ad idem that the impugned judgment may be set aside and the suit decreed in terms of the settlement agreement dated 27 September 2023.
RFA(COMM) 27/2024
KUMAR
Signing Date:01.04.2026
18:21:43
We have perused the contents of the settlement agreement dated 27 September 2023. We find that it is in order and is enforceable in law.In the circumstances, we do not desire to express our opinion with respect to the decision of the learned Commercial Court to proceed to dismiss the suit on merits even when the parties had settled the dispute out of Court.In view of the submissions made ad idem, the impugned judgment is quashed and set aside.CS (Comm) 3898/2021 stands settled in terms of settlement agreement dated 27 September 2023. The terms of settlement read thus:
"1. Defendant No.1 shall not use, in and/or outside India, in
any manner whatsoever, for selling, offering for sale, advertising,
directly or indirectly dealing in any products or services under the
Infringing Marks namely 'Classio' in any manner whatsoever or
any other trade mark/logo or device or domain name etc. which is
identical or deceptively similar to the 'Classio' of the Plaintiff, as
defined in the Plaint.
Defendant No.1 shall cease use and remove from theirpremises, all banners, visiting cards, brochures or boards etc.
containing Infringing Marks of 'Classio', including word and logo
marks.Defendant No. 1 further agree to remove all online presenceincluding digital advertisements, photos, videos, social media or
any other digital presence currently in use of Infringing Marks of
'Classio'.Defendant No.1 agrees to withdraw the application4893418 and 4586234 or any other application filed by the
defendant before the Indian Trade Marks Registry and shall shareRFA(COMM) 27/2024
KUMAR
Signing Date:01.04.2026
18:21:43
the proof of withdrawal within one week from the execution of the
present Settlement Agreement.
Defendant No.1 and further submit that he has not, filedany other trade mark application(s) containing the Infringing
Marks (as defined in the Plaint) or any other trade mark which is
identical or deceptively similar to the 'Classio' Marks of the
Plaintiff (as defined in the Plaint).Defendant No.1 undertakes he shall not file any other trademark application(s) containing the Infringing Marks (as defined in
the Plaint) or any other trade mark which is identical or deceptively
similar to the 'Classio' mark of the Plaintiff (as defined in the
Plaint), before any trade mark office.That the Defendant hereby with the signing of the presentsettlement agreement hands over a cheque for a sum of INR
80,000/- (Rupees Eighty Thousand Only) issued in the name of the
plaintiff, bearing cheque No.000016, dated 27/09/2023 drawn on
HDFC Bank. A copy of the cheque is annexed along with the
present agreement.That the Parties herein undertake to have this CommercialSuit decreed in terms of the present Settlement Agreement. That it
is also agreed between the Parties that the First Party shall make an
application for or make an oral prayer seeking refund of court fee
under section 16 of the Court Fees Act, 1860, simultaneously with
the Parties seeking disposal of the pending Commercial suit in
accordance with terms of this Settlement Agreement.That the Parties hereto state that all or any dispute anddifference arising out of the Commercial Suit between the Parties,
has been amicably settled by way of execution of this present
Settlement Agreement.That the Parties undertake that all the disputes and matters
whatsoever arising under, in connection with or incident to this
Settlement Agreement shall be adjudicated before the competent in
Delhi, to the exclusion of the Courts of any other states in the
country.The Parties agree and understand that the presentSettlement Agreement is a highly confidential document and shall
not be processed or published in any manner whatsoever by way of
a press release or any other publication for wide circulation which
shall be detrimental to the interest of either the Parties.
Notwithstanding the above, the Second Party shall be at the liberty
to submit the present Settlement Agreement to any governmentRFA(COMM) 27/2024
KUMAR
Signing Date:01.04.2026
18:21:43
body for regulatory compliances after taking prior written consent
form the First Party.
That the Parties agree that all the terms and conditions laid
out in the present Settlement Agreement are fair and reasonable
and have been entered into with full appreciation of its various
clauses and implications.That the Parties further represent and warrant that theirrespective signatories are duly authorized and have full capacity to
execute this Settlement Agreement.That the Parties undertake that they shall be bound by thisSettlement Agreement and will abide by the terms and conditions
set out in the Settlement Agreement in letter and spirit and upon
signing this Settlement Agreement there will be no claims and
disputes left between the Parties arising out of this Commercial
Suit."The parties shall remain bound by the aforesaid settlement agreement.
In the circumstances, nothing further survives for adjudication in the appeal. The appeal as well as the suit stand disposed of in terms of the settlement agreement.The Registry is directed to draw up a decree in terms of the settlement agreement dated 27 September 2023 between the parties.The appeal stands disposed of in the aforesaid terms.
C. HARI SHANKAR, J.
OM PRAKASH SHUKLA, J.
MARCH 23, 2026/aky
RFA(COMM) 27/2024
KUMAR
Signing Date:01.04.2026
18:21:43
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