One-time settlement with financial corporation implemented through payment from registry funds and issuance of no due certificate

The dispute was limited to implementation of a one-time settlement with Gujarat Industrial Investment Corporation after the earlier monetary claims ceased to survive. The parties placed the settlement terms on record and confirmed that the corporation had accepted the arrangement. In view of that settlement, the Court directed compliance with the written terms, permitted payment from the amount lying with the Registry, required issuance of a no due certificate by IDBI Bank on receipt of payment, and left the balance invested. Liberty was reserved to pursue a fresh application against IFCI.

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Issues: Whether, in view of the settlement arrived at with Gujarat Industrial Investment Corporation, the application could be disposed of by directing payment from the sale proceeds and permitting implementation of the one-time settlement.

Analysis: The surviving dispute was confined to the settlement with Gujarat Industrial Investment Corporation, while the earlier monetary claims no longer survived. The parties jointly placed on record the terms of settlement dated 18.03.2017 and confirmed that the corporation had accepted the one-time settlement. In light of the settlement and the limited surviving claim, the Court directed the parties to abide by the written terms, permitted payment of Rs. 39,50,000/- out of the amount lying with the Registry, directed issuance of a no due certificate by IDBI Bank upon receipt of the amount, and left the balance invested. Liberty was reserved to file a fresh application as against IFCI.

Conclusion: The application was disposed of in terms of the settlement with Gujarat Industrial Investment Corporation, with consequential directions for payment, release of the amount, and issuance of the no due certificate.

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