U.P. FINANCIAL CORP. 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, based on the terms of a one-time settlement (OTS). The Court found that the Corporation's failure to release the mortgaged land after the respondent's payment of the first installment under the OTS was unjust, thus relieving the respondent from liability for delayed payment interest. The judgment emphasized that the Corporation's insistence on interest charges post-OTS payment was unreasonable and illegal.