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.
He said it has been agreed that the divorce petition filed by her husband at a court in Mumbai will now be converted into divorce by mutual consent, with the actor also agreeing to withdraw the case filed against him under the Protection from Domestic Violence Act in two weeks in view of the settlement arrived at New Delhi.
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 the Indian Penal Code and the apex court accordingly quashed it."
Karisma's husband will have visitation and access right over their two children during the holidays, he said. 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 apex court disposed of the plea filed by Sunjay seeking transfer of the divorce petition from Mumbai to Delhi because the businessman was allegedly warned by underworld don Ravi Pujari against entering the city.
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The consent was later withdrawn after differences cropped up between the two over the financial settlement as well as the children's custody.