The apex court took on record the "consent terms" signed by both the parties in which the custody of their two children will be with the actor, while her estranged husband will have access and visitation rights.
After the in-chamber hearing before a bench of Justices A K Sikri and R K Agrawal, advocate Sandeep Kapur, who appeared for Karisma, said that all pending disputes between the couple have been amicably resolved.
Kapur further said that during the in-chamber proceedings in which her husband's lawyer was also present, "We agreed for the quashing of the criminal proceedings initiated by us at a trial court in Mumbai under section 498A (subjecting woman to cruelty) of IPC and the apex court accordingly quashed it."
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The settlement was arrived exactly a month after March 8, the day on which the couple had told the apex court that they have arrived at an amicable solution regarding the financial aspects of the case and issues like visitation right of Sunjay Kapur to see their kids, who are with the actor, were to be reconciled.
Earlier, the apex court had asked Karisma and Sunjay to resolve their matrimonial dispute amicably and advised their counsels to work out the terms of settlement before the next date.
The actress had earlier alleged that Sunjay had violated certain clauses of their agreement before filing a mutual consent divorce petition in Mumbai.
Karisma and her husband had initially moved a mutual consent divorce petition before the court in 2014. The consent was later withdrawn after differences cropped up between the two over the financial settlement as well as the children's custody.