Actors Richa Chadha and Payal Ghosh on Wednesday told the Bombay High Court that they have amicably settled their dispute and filed consent terms in which Ghosh withdrew the statement made against Chadha and tendered unconditional apology.
Chadha had last week filed a defamation suit against Ghosh for making a "false, baseless, indecent and derogatory statement "against her.
Chadha in her suit had also sought monetary compensation as damages.
Ghosh, while making allegations of rape against film maker Anurag Kashyap, had also dragged Chadha and two other female actors into the controversy.
On Wednesday, advocate Nitin Satpute, appearing for Ghosh, told Justice A K Menon that both the parties (Chadha and Ghosh) have settled the matter amicably and submitted a statement of undertaking.
In the undertaking, Ghosh said she was withdrawing the statement she made against Chadha and tendered unconditional apology.
"Defendant 1 (Ghosh) undertakes to delete her statement and defamatory posts against the plaintiff (Chadha) on Twitter and other social media and further also undertakes not to state, make, publish any defamatory, insulting and humiliating statement (s) against the plaintiff at any time," the statement said.
"The parties have agreed they would not file any cases against each other with regard to this matter and there would not be any demand for monetary compensation," Satpute told the court.
Chadha's advocates Veerendra Tulzapurkar and Saveena Bedi Sachar also said the matter has been worked out.
Justice Menon accepted the same and disposed of the suit against Ghosh.
Chadha in her suit had also arraigned a Telugu news channel and actor Kamaal R Khan as defendants for uploading Ghosh's video and making further statements against Chadha.
On Wednesday, Khan's advocate Manoj Gadkari told the court that the actor will not make any further statements but he intends to contest the present suit.
The bench then directed him to file an affidavit and posted the suit for further hearing after six weeks.
Ghosh had on September 23 lodged a complaint at suburban Versova police station accusing Kashyap of raping her in 2013.
Kashyap was on October 1 questioned by the police during which he denied the allegations and provided documentary evidence to show that he was shooting in Sri Lanka at the time when the alleged incident is said to have taken place.