United Bank Of India vs Ramdas Mahadeo Prashad And Ors

The Supreme Court held that a Memorandum of Understanding (MOU) entered into on 18.05.1994 constituted a new contract under Section 62 of the Indian Contract Act, 1872, and that the terms of the MOU must be adhered to by both parties. The Court found that the opposite party complied with the MOU, including timely payment of the first installment, and ruled that the bank's claim for a higher amount was invalid. The Court upheld the interpretation of the MOU and clarified that the bank was obligated to release title deeds as per the agreement.