A party cannot resile from a mediated settlement without just cause

 A party cannot resile from a mediated settlement without just cause, and DV proceedings based on vague allegations after such resilement constitute abuse of process; Supreme Court may dissolve marriage under Article 142 on irretrievable breakdown.


Facts
Dispute arose after mediated settlement and withdrawal of consent for mutual divorce.

The parties entered into a mediated Settlement Agreement resolving all matrimonial disputes, including payment of ₹1.5 crore and mutual undertakings not to initiate further litigation. The First Motion for divorce under s. 13B HMA was allowed and substantial obligations were performed by both parties.

Subsequently, the wife withdrew consent before the Second Motion and initiated proceedings under s. 12 DV Act, 2005. The High Court permitted continuation of DV proceedings subject to deposit of ₹89 lakhs. The husband challenged this and also sought divorce under Art. 142 Const. of India.

Issues Framed
(a) Whether DV proceedings should be quashed.
(b) Whether a party can resile from a mediated settlement.
(c) Whether divorce can be granted under Art. 142 Const. of India on irretrievable breakdown.

Court’s Reasoning
(a) Binding nature of mediated settlements
The Court held that once a settlement is “duly authenticated by the mediator,” parties are bound by its terms, and resilement is impermissible unless vitiated by “force, fraud or undue influence” or non-performance by the other side (Para 30–31). The wife failed to establish any such ground.

(b) Conduct of the respondent-wife
The Court found the explanation regarding alleged undisclosed jewellery claims “highly egregious” and unsupported by contemporaneous material (Para 33–35). Her conduct in accepting benefits and then reneging was held unjustified.

(c) Abuse of DV proceedings
The Court noted absence of “specific allegations” of domestic violence and held the complaint to be an afterthought, filed after settlement disputes (Para 37–40). Continuation would amount to abuse of process.

(d) Withdrawal of consent vs settlement obligations
While acknowledging that consent for mutual divorce can be withdrawn, the Court clarified that such withdrawal does not permit evasion of binding settlement obligations (Para 29).

(e) Irretrievable breakdown and Article 142
Considering long separation, failed mediation, multiple litigations, and hostile conduct, the Court held that the marriage was “totally unworkable… beyond salvation” (Para 51–52), justifying exercise of Art. 142 Const. of India.

Held
Appeal allowed. DV proceedings quashed. Marriage dissolved under Article 142 subject to compliance with remaining settlement terms.

Ratio
A party to a mediated settlement cannot resile from its terms without proving vitiating factors, and subsequent criminal proceedings lacking specific allegations, instituted after such resilement, are liable to be quashed as abuse of process; in such circumstances, the Supreme Court may dissolve the marriage under Article 142 on the ground of irretrievable breakdown.Case Details

Citation: 2026 INSC 360
Decided on: 13 April 2026
Case Title: Dhananjay Rathi v. Ruchika Rathi
Court: Supreme Court of India
Bench: Vijay Bishnoi, J.

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