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The court found the deed of settlement filed by the parties to be lawful and in compliance with the requirements for amicable settlement, and therefore adopted it as a consent judgment, making it a final decree resolving the dispute.
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The decree was properly extracted from a consent judgment that incorporated the deed of settlement, making it executable. The application for execution was not premature as the agreed time for payment had expired, and the condition regarding retention monies did not suspend the decree holder's right to execution. Partial satisfaction of the decree was established and recorded, reducing the unsatisfied amount.
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The High Court allowed a civil appeal, restored the Primary Court’s instalment order, and held that the lower appellate court acted arbitrarily by raising the instalment without inquiry into ability to pay.
Failure to pay the fourth instalment on the due date did not constitute a fundamental breach going to the root of the contract, as the parties had agreed to extend the time for payment and the respondent had paid a substantial part of the contractual sum.
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