Settlement of disputes only through any of the mode prescribed under Section 89 CPC is not sine qua non of sec 89 CPC rather it prescribes few methods through which settlement can be reached; sine qua non for the applicability of section 89 is settlement between the parties outside the court without the intervention of the courts. Para 21

Settlement of disputes outside court and refund of court fees is permissible even in cases in which parties, without any reference by court, privately agree to settle their dispute outside modes contemplated under S. 89 CPC and such settlement is legally arrived at.

(2021) 3 SCC 560 – High Court of Madras v. M.C. Subramaniam

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