In Brief
The Punjab Financial Corporation loaned money to M/s Paulbro Leathers, which defaulted. The parties settled the dispute under a one-time settlement policy with a chartered accountant appointed to determine the outstanding balance. Later, the Corporation claimed an additional amount (Rs. 49,86,713) based on its calculations. The respondent denied liability and filed a writ petition, which the High Court allowed, reasoning that settled matters cannot be reopened. The Supreme Court allowed the appeal, holding that while settlement was valid, the new dispute about actual compliance and liability must be examined on merits. The Court remanded the case for the High Court to record categorical findings on whether the respondent properly discharged its settlement obligations."
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