Hatton National Bank Ltd. v. Depositors Association Of K. A. Martin Perera And Sons And Another – sllr 2007 volume 2 page 400

In the case between Depositors Association of K. A. Martin Perera and Sons and Another (Respondent) and Hatton National Bank Ltd. (Petitioner), the court addressed the issue of whether the petitioner bank was entitled to retain any funds in excess of Rs.33.25 million from the sale proceeds of mortgaged properties under a settlement agreement. It was determined that the bank could not retain such excess, given the clear terms of the settlement, and any funds above the specified amount must be deposited in Court. This reaffirmed the principle that a court-recorded settlement binds the parties to its exact terms and does not permit unilateral deviation. Reliance was placed on the enforceability of settlement agreements as per legal standards, underscoring the requirement for strict adherence