Wonosari Religious Court Decision No. 34 of 2016: Deed of Settlement Reached

The parties agreed that, on 5 January 2016, the first party (as the plaintiff) had filed an application with the Wonosari Religious Court against the second party for defaulting on a musyarakah financing agreement, dated 30 September 2014. On 2 May 2016, the parties underwent mediation and agreed to resolve the case peacefully. The terms of settlement between the parties acknowledged:

  1. the musyarakah agreement, dated 30 September 2014;
  2. that the quantified material and immaterial damages sought by the first party in its application to the Court were IDR 29,522,400, but based on mediation, it was agreed that the second party would pay to the first party IDR 22,876,235, to cover its arrears;
  3. that in the musyarakah agreement the second party had guaranteed to the first party the deed of title to a property in Semin, Gunung Kidul, Yogyakarta;
  4. that the second party was able to pay its arrears, per figure 2, in 16 instalments of IDR 500,000 payable on the 15th of each month, from May 2016 to August 2017, with a 17th and final instalment of IDR 14,876,235 payable on 15 September 2017;
  5. that if the second party failed to meet its repayment obligations, the first party was entitled to seize and sell the Semin property;
  6. that if the second party met its repayment obligations, the first party would return to the second party the deed of title to the Semin property;
  7. that the terms of the deed of settlement would be registered in a judicial decision, and that the parties would, in good faith, implement the contents thereof; and
  8. that the parties agreed that the terms of the deed of settlement would be affirmed in a court decision.

The court ordered that the parties adhere to the contents of the deed of settlement, dated 2 May 2016, and that they share costs.

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