What are the legal and Sharia bases upon which judicial authorities rely in ratifying settlement and deeming it a binding judgment?

Judicial authorities, in ratifying settlement, rely on the fact that disputes arising from contractual relationships between parties fall within their jurisdiction, taking into consideration the Sharia provisions that encourage settlement and deem it an irrevocable and final contract from which there can be no retraction after its conclusion, thereby making it a conclusive termination of the dispute, in accordance with the provisions of relevant regulations.