Conditional settlement and bank guarantee release followed payment to the Prime Minister's Relief Fund.

The order records a consensual arrangement to resolve the dispute by setting aside the impugned order if the appellant paid Rs. 1.05 crores to the Prime Minister's Relief Fund within eight weeks and proved such payment. The payment was stated to be without prejudice and without admission of liability. If compliance was not shown, the appeals would stand dismissed and the amount could be recovered in accordance with law. Upon proof of payment, the bank guarantee furnished by the appellant was to be released within four weeks, giving effect to the agreed quietus between the parties.

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Issues: Whether the impugned order could be set aside subject to the appellant making payment of Rs. 1.05 crores to the Prime Minister's Relief Fund within the stipulated time, and whether the bank guarantee furnished by the appellant was liable to be released upon such compliance.

Analysis: The parties sought disposal on the same course adopted in a connected matter. The appellant undertook to pay Rs. 1.05 crores without prejudice and without admitting liability, and the respondent did not object to the adoption of that course. The arrangement was accepted as a basis for giving quietus to the controversy, with the safeguard that non-compliance would result in dismissal of the appeals and recovery of the penalty amount in accordance with law. The order also provided for release of the bank guarantee upon proof of payment.

Conclusion: The impugned order was set aside subject to the appellant depositing Rs. 1.05 crores within eight weeks and proving such payment, failing which the appeals would stand dismissed. Upon compliance, the respondent was required to release the bank guarantee within four weeks.

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