The facts are that a partnership at will has been dissolved by one party by filing a notice with the court. Subsequently it has been agreed by the partners to settle the matter out of court.
What is the best manner in which this can be settled legally, such that both the parties (the one which filed for dissolution and the other party) interests are met and if either party does not abide by the terms of settlement there is an option available to go back to the court.
One may apply in the court for mediation. A senior judge acts as a mediator and tries to settle the dispute between the two parties. The settlement deed can be prepared which shall be binding on all concerned parties.