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Arbitration & Mediation

Settlement Agreements

A settlement is only as good as the document that records it. We draft settlement agreements that actually end the dispute, cover the things people forget, and can be enforced if the other side does not perform.

Contract Act 1872Code of Civil Procedure 1908Registration Act 1908, where property is involved
Illustration of an agreement with crossed pens and a level scale, for compromise in a criminal case in Bangladesh

Compromise and settlement agreements

We draft, review and implement settlement agreements and deeds of compromise: commercial settlements, family and inheritance settlements, property compromises, employment exits, and the consent terms that end a pending case.

Making it final

A settlement should close the dispute completely. That means clear terms on payment and timing, a proper release covering all related claims, what happens on default, and confidentiality where it matters. Agreements that settle only the presenting issue leave the parties free to argue about everything else.

Settlements in a pending case

Where proceedings are on foot, the settlement should normally be recorded with the court so it becomes enforceable as part of the case rather than as a fresh contract you would have to sue on separately. That step is regularly overlooked and it makes a large difference.

Where property or money moves

If the settlement transfers property, the transfer must be documented and registered properly, and the mutation followed through. If it provides for payment by instalments, the default clause is what gives it teeth.

The most common failure is a settlement with no consequences for breach. If the agreement does not say precisely what happens when a payment is missed, you are left starting a new case to enforce the deal that was meant to end the last one.

What we need

  • What has been agreed in principle, and the figures
  • The pleadings if a case is pending
  • Title documents where property forms part of the settlement
  • Details of everyone whose claims need to be released

Timing

A settlement agreement can usually be drafted within days once terms are agreed. Where property is transferred, registration and mutation add to the timeline, and where a case is pending the consent terms have to be placed before the court.

Illustration representing settlement agreements
How we close a settlement
1

Capture the terms

We pin down exactly what has been agreed, including the parts still left vague.

2

Draft for finality

We draft the release, the payment terms and the default consequences.

3

Record it where it counts

We place consent terms before the court, and register any property transfer.

4

Implement and follow through

We see the payments, transfers and mutations actually completed.

A default clause is what gives a settlement teeth.Book a Consultation

Read the free guides first

Most of what clients ask at a first meeting is answered step by step in our free guides. Read the ones below first; book a consultation when you want the chamber to act.

Common questions

We shook hands on it. Do we need a document?

Yes. An unrecorded settlement is exactly where the next dispute starts, because memories differ on the detail. A short, clear document costs very little compared with re-litigating.

Our case is in court. Do we still need to tell the judge?

Normally yes. Recording the settlement in the proceedings makes it enforceable within the case, instead of leaving you to sue separately on a contract.

What if they do not pay as agreed?

That depends entirely on what the agreement says. A properly drafted default clause, and consent terms recorded with the court, give you a direct route to enforcement instead of a fresh lawsuit.

Which criminal cases can be compromised?

Offences listed in section 345 CrPC can be compounded. Those in s.345(1), such as simple hurt (s.323) or defamation (s.500), can ordinarily be compounded by the person specified, subject to the section’s conditions; those in s.345(2), such as cheating (s.420) and breach of trust (s.406), only with the court’s permission. Serious offences such as attempt to murder (s.307) cannot be compounded, though a settlement may still count at bail or sentence.

We signed an aposhnama but they filed another case. Is it worthless?

No. A compromise filed in court binds the parties to that case and is strong evidence against a new case on the same facts. Make sure the court records the compromise in its order, then use it to seek dismissal or quashing of the new case.

How do I write an aposhnama?

Name the parties and the case number, set out the terms clearly (amount, dates, who withdraws what), state that it is voluntary, and have both sides and witnesses sign. In a pending case, file it with a joint petition so the court records it.

Put the settlement beyond argument

Drafted to be final, and to be enforceable. A written assessment costs nothing.

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