Following hectic negotiations, Fortis Healthcare managing director Shivinder Singh and Naresh Trehan have finally smoked the peace pipe and have arrived at an agreement that will see the two parting ways in due course.

Trehan will go on to pursue his dream Medicity project, while Singh will focus on expanding his healthcare chain. All old agreements have been squared off and both have amicably agreed to go their separate ways. The out-of-court settlement will see all legal cases and complaints registered against each other withdrawn.

Although the full contours of the settlement - finalised after a bitter week of allegations and counter-allegations - are being kept under wraps, sources said that both camps had decided to bury the hatchet and look ahead. "It was all a misunderstanding," a joint statement issued here today by Fortis said.

As a part of the deal, which aims at limiting public damage to both the corporate brand as well ensuring that Trehan leaves with his credibility intact, the noted doctor has been reinstated to his old position of executive director, Escorts Heart Hospital.

The decision to part ways amicably was helped by the fact that both respected demands by well-wishers to lower the temperature and stop talking to the media. That strategy was also guided by the premise that a long-drawn battle would affect Trehan's plans to set up Medicity at Gurgaon, which involves an investment worth Rs 1,000 crore (Rs 10 billion). Meanwhile, other employees against whom disciplinary action was taken due to their affinity to Trehan, will not be re-employed by Fortis.

"Trehan will be free to select a team of his choice in his personal capacity, including the ones who have been ousted," Singh said.