Actor Payal Ghosh, who has accused film-maker Anurag Kashyap of raping her, on Wednesday told the Bombay High Court that she regrets her statement about Richa Chadda, and tendered an unconditional apology.
Chadda's lawyers said she was ready to accept the apology.
Earlier this week, Chadda filed a defamation suit before the high court against Ghosh for making a "false, baseless, indecent and derogatory" statement and sought damages.
Ghosh, while making allegations against Kashyap, had also dragged Chadda and two other women actors into the controversy.
Chadda also named actor Kamaal R Khan as a defendant in the suit.
On Wednesday, Ghosh's lawyer Nitin Satpute told Justice A K Menon that Ghosh regrets her statement, and it was not intended to defame Chadda.
"She (Ghosh) said it innocently. She is a big follower of the plaintiff (Chadda) and respects her. She is ready to withdraw the statement and tender apology," he said.
"She regrets whatever she said and her intention was never to defame any woman," advocate Satpute told the court.
Chadda's lawyers Veerendra Tulzapurkar and Saveena Bedi Sachar told the court that they are willing to accept the apology and would not claim damages.
The court then posted the plea for further hearing on October 12 when the parties will have to submit their 'consent terms' settling the matter.
Advocate Manoj Gadkari who appeared for Kamaal R Khan told the court that Khan was willing to assure that he will not post anything against Chadda on social media.
The court accepted the statement.
Also read: Actor Payal Ghosh meets MoS Home after accusing filmmaker Anurag Kashyap of sexual assault
Justice Menon also passed an interim order restraining any person from making similar comments against Chadda, after observing that a "prima facie case was made out".
Ghosh on September 23 registered a First Information Report at suburban Versova police station, accusing Kashyap of raping her in 2013.
Kashyap, who was last week questioned by the police, denied the allegations and provided documentary evidence to show that he was shooting for a film in Sri Lanka when the alleged incident was said to have taken place.