Article 1263. Consideration of the issue of approval of a settlement agreement

The issue of approving a settlement agreement is considered at a court hearing by the court in which the case is being conducted, with the mandatory participation of the parties. The persons participating in the case shall be notified of the time and place of the court session in accordance with the procedure provided for in Article 124 of this Code.

In case of non-appearance at the court session of persons who have concluded a settlement agreement and are duly notified of the time and place of the court session, the issue of approving the settlement agreement is not considered by the court.

When considering the issue of approving a settlement agreement, the court examines the factual circumstances of the case, the arguments and evidence presented by the persons involved in the case, gives them an assessment to check whether the agreement complies with the requirements of the law, as well as the rights and legitimate interests of third parties.

On approval of the settlement agreement, the court issues a ruling indicating the termination of the proceedings in whole or in part.

In case of approval of the settlement agreement by the court of appeal, cassation instance, a ruling is issued, which cancels all judicial acts previously adopted in the case and stops the proceedings. When considering the issue of approving a settlement agreement by the court of appeal, cassation instance, the legality and validity of the relevant judicial act are not checked.

In the case of a settlement agreement at the stage of execution of a judicial act, it is submitted for approval to the court of first instance that reviewed the case.

The issue of approval of a settlement agreement concluded at the execution stage is considered within fifteen days from the date of its submission to the court according to the rules provided for in part one of this article.

The court has no right to approve the settlement agreement in part, to change or exclude from it any conditions agreed by the parties. The court has the right to propose to the parties to exclude from this agreement certain conditions that contradict the law or affect the rights and legitimate interests of others.