U.P. Financial Corp. & Ors vs M/S. Sri Bharat Paper Udyog P.Ltd. ...

The Supreme Court upheld the Allahabad High Court's order directing UP Financial Corporation to issue a no-dues certificate and release title deeds to the respondent company, emphasizing that the Corporation's failure to release the mortgaged land after the first installment payment under the One Time Settlement (OTS) was unjust. The Court found that the terms of the OTS did not explicitly link the release of the land to the payment of the first installment, thus the respondent could not be penalized for delayed payments. The Court concluded that the insistence on interest for delayed payments was unreasonable and illegal, affirming the High Court's decision.