In Brief
Punjab Financial Corporation loaned money to Paulbro Leathers Pvt. Ltd., which defaulted. The parties settled the dispute in 2003, and a Chartered Accountant was appointed to determine the remaining liability. A dispute later arose over the exact amount owed. The Corporation demanded Rs.49,86,713, which Paulbro contested via writ petition. The High Court quashed the demand, reasoning that since the parties had settled and no objection was raised earlier, the matter could not be reopened. The Supreme Court allowed the appeal, holding that a new dispute arising from settlement terms must be examined on merits. The Court remanded the case to the High Court to decide the writ petition afresh, with proper findings on whether Paulbro had satisfied its obligations under the settlement."
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