Settlement reliefs on consent terms granted with withdrawal condition and preserved rights against sureties.

Settlement-related reliefs may be granted on agreed terms where the respondent consents, including issuance of a no dues certificate and withdrawal of claims, subject to reciprocal conditions. The applicant was required to withdraw the proceedings before the Debt Recovery Appellate Tribunal within six weeks, while the respondent's independent right to proceed against the sureties under the contract of suretyship remained open. The court also recorded that contempt-related relief was not pressed. The reliefs in prayer clauses (i) and (ii) were granted accordingly, on the stated conditions.

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Issues: Whether the applicant was entitled to a direction for issuance of no dues certificate and withdrawal of claims, subject to conditions accepted by the respondent.

Analysis: The applicant did not press the contempt-related relief. The respondent consented to grant of the remaining reliefs, subject to the applicant withdrawing the proceedings before the Debt Recovery Appellate Tribunal within six weeks and the respondent's right to proceed against the sureties remaining open under the contract of suretyship. The requested reliefs were therefore granted on agreed terms.

Conclusion: The applicant was granted the reliefs sought in prayer clauses (i) and (ii), subject to the stated conditions.

Ratio Decidendi: Where the respondent consents, the Court may grant settlement-related reliefs on reciprocal conditions, while preserving independent rights against sureties.

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