ITR Refund adjusted with Outstanding Demand

A demand raised by IT Department for AY 2010-11, ITR Refund is consistently adjusting with this demand.

1. How can I get settlement details, because we are getting only details that refund has been settled with the demand. whereas Refund amount is already increase due to interest add, so how can I confirm about exact settled amount. 

2. Should I pay that demand as one time.

3. If it is paid by ITR Refund, then we would be liable any interest/penalty or not.

Thanks in advance!