One time settlement permitted through release of sale proceeds, with balance funds kept invested pending further consideration.

The Gujarat HC permitted implementation of a one time settlement by directing release of the crystallised dues from sale proceeds already lying with the Registry. It held that the settled amount could be paid to the bank by cheque from the deposited funds, while the balance was to remain invested. The arrangement was confined to the amount agreed under the settlement, and the matter was left pending for further consideration.

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Issues: Whether the applicant and the concerned bank could be permitted to give effect to their one time settlement by release of the specified amount from the sale proceeds lying with the Registry.

Analysis: The amount sought was limited to the crystallised dues agreed under the one time settlement. The sale proceeds were already lying with the Registry pursuant to the earlier order, and the Court directed that the settlement be implemented by issuing a cheque in favour of the bank from the deposited amount. The remaining amount was directed to stay invested, and the matter was kept pending for further consideration.

Conclusion: The applicant was permitted to give effect to the one time settlement and the Registry was directed to issue the cheque for the settled amount in favour of the bank.

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