What are the statutory and Sharia-based foundations upon which the court relies when issuing a judgment to ratify a settlement between the parties?

The court relies on Article (29/2) of the Commercial Courts Law, which stipulates the termination of a lawsuit by agreement of the parties, and on Article (70) of the Law of Sharia Procedure, which permits litigants to request the recording of the settlement in the minutes of the lawsuit and the issuance of an official instrument thereof. It also relies on general Sharia principles that encourage reconciliation, such as the Almighty's saying: "And reconciliation is best," and the saying of the Prophet, peace be upon him: "Settlement is permissible among Muslims, except for a settlement that makes lawful what is unlawful or makes unlawful what is lawful."