Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Concession - Winding up petitions against respondent- company - Concession by counsel of the respondents to pay the due debts in 10 and 8 equal instalments respectively - Company Judge disposed of the petition in view of the concession - |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Concession - Winding up petitions against respondent-company - Concession by counsel of the respondents topay the due debts in 10 and 8 equal instalments respectively- Company Judge disposed of the petition in view of theconcession - Order of Company Judge challenged uptoSupreme Court wherein the Court directed the respondentto move the Company Judge for modification of its order -Company Judge refused the modification - Division Benchof High Court by impugned order held that the counsel madethe concession by mistake and set aside the order ofCompany Judge - On appeal, held: Order of the DivisionBench is unjustified legally as well as equitably - Since therespondent-company had failed to discharge the admitteddebt even after service of statutory notice, the CompanyJudge had no alternative but to proceed for the winding-up ofthe Company- The counsel of the respondent had displayedlegal sagacity in getting the winding-up postponed andavoided the publication in the petition - Had he not done so,the respondent would have had to pay the entire debt at onceor face certain commercial death as a consequence ofpublication/citation of winding-up petition - The respondentabused the judicial process in order to delay the dischargeof an acknowledged debt for almost a quarter of a centuryduring which period he continued his business - However,order of Company Judge modified - The respondent• isdirected to pay all the amounts due, along with the costimposed by the Company Judge and the cost of the presentproceedings within 45 days of this judgment - Appealsallowed - Companies Act, 1956 - s. 439 -Administration ofJustice -Abuse of Judicial Process. Administration of Justice - Proliferation andprolongation of litigation - Unwarranted lenient approach ofthe courts, results in proliferation and prolongation of litigation,leading to insurmountable pendency of litigation. |
Judge | Hon'ble Mr. Justice Vikramajit Sen |
Neutral Citation | 2015 INSC 570 |
Petitioner | Stantech Project Engg. Pvt. Ltd. |
Respondent | Nicco Corporation Ltd. |
SCR | [2015] 9 S.C.R. 165 |
Judgement Date | 2015-08-13 |
Case Number | 7373 |
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