STATE BANK OF INDIA vs VIJAY KUMAR

The Supreme Court upheld the Punjab and Haryana High Court's decision allowing the respondent's writ petition, which challenged the appellant-bank's recovery actions based on a compromise deed. The Court noted that despite some defaults in payment, the respondent had ultimately paid the entire amount due along with interest for the default period. The Court emphasized that the High Court correctly recognized the bona fides of the respondent and allowed the compromise to be acted upon, while also permitting the bank to charge interest for the default period at 10.4% per annum.