Vijay Mallya-owned United Spirits Ltd (USL) has finally agreed to settle a dispute relating to "Officer's Choice" whisky brand with Allied Blenders & Distillers (ABD) out of court.

As terms of settlement, USL will withdraw all cases against ABD filed with Delhi and Calcutta High Courts, while ABD will reportedly pay one-time settlement amount of Rs 8 crore to USL.

USL has hit the cash settlement as a time when a group company, Kingfisher Airlines, is struggling to raise resources to pay salaries to the employees.

The settlement deal is also expected to pave the way for USL to hit a deal with Diageo, which has openly expressed its interest in acquiring a stake in USL.

Kishore Chhabria, chairman of ABD, also welcomed the settlement deal, saying the brand would now be able to grow further.

Speaking about the deal, Chhabria said, "Now that all disputes are over, ABD and Officer's Choice are poised for growth."

Officer's Choice has always been an outstanding performer among Indian whisky brands. As per trade magazine International Wine & Spirits Research, Officer's Choice whisky brand sold more than 17 million cases previous year.