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

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 as per the one-time settlement (OTS) terms constituted a breach of obligation. The Court clarified that the respondent could not be held liable for delayed payments due to the Corporation's non-compliance with the OTS, thus invalidating the imposition of interest on delayed installments. The judgment reinforces the principle that contractual obligations must be honored, particularly in financial settlements.