In Brief
Punjab Financial Corporation loaned money to Paulbro Leathers, which defaulted. The parties settled the dispute in 2003 under the Corporation's one-time settlement policy. A Chartered Accountant was appointed to determine the outstanding balance. After the report, the Corporation raised a demand for Rs. 49.86 lakh, which the respondent denied. The High Court allowed the respondent's writ petition, holding that settlement barred reopening the issue. The Supreme Court allowed the Corporation's appeal, holding that disputes arising from settlement terms must be examined on merits. The Court remanded the case for the High Court to decide the writ petition afresh with proper findings on liability."
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