Settling for a denial when he knows the right is greater

Question:
Honorable Shaykh! A settlement that ends a dispute is binding on both parties. Is the person who settled by denying it asked by Allah if he knows that the debt is greater than the settlement he agreed to?

Answer:
In the name of Allah, the Most Gracious, the Most Merciful. If the defendant knows that he owes a right, it is not permissible for him to settle, rather it is obligatory for him to pay the right he owes, unless the other party agrees to the settlement. As for if he does not know that he owes a right.
He says: I will pay you a settlement to avoid the trouble of claiming and the fatigue of litigation. I do not know that I owe you anything, but he wants to avoid the dispute, especially if he is a person of status and standing among the people, and he does not want to harm his reputation in this matter. So if his opponent is persistent, and he buys his safety or his reputation by giving some money, there is no harm. Yes.