In Brief
Punjab Financial Corporation sued to recover an outstanding loan amount of Rs. 49,86,713 from Paulbro Leathers after the parties had settled their dispute through a one-time settlement policy. A Chartered Accountant had been appointed to determine the remaining balance. The High Court quashed the Corporation's demand, holding that no objection could be raised at that late stage. The Supreme Court allowed the appeal, finding that the High Court erred in refusing to examine the merits of the dispute. The Court held that the new dispute arising from the settlement's interpretation must be decided on merits, with categorical findings on compliance. The case was remanded to the High Court for fresh adjudication within six months, given that public money was involved."
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