HC's leniency towards co.'s debt default 'inexplicable', cause for litigation pile up
SC allows appeal, upholds company judge's order, sets aside the order passed by Division Bench of Calcutta HC relating to respondent co.'s winding-up; Observes that respondent co. has abused the judicial process by delaying repayment of acknowledged debt for almost 25 years, during which the respondent co. continued regular business, directs it to pay such debt along with interest; Clarifies that if respondent co. fails to make such payment within prescribed time, the appellant is entitled to file petition with Company Judge, who shall admit winding-up petition and expeditiously proceed with necessary procedure; With respect to the earlier order passed by Co. Judge, SC states that it had no alternative but to proceed for respondent co.'s winding-up as the co. failed to discharge admitted debt even after service of prescribed statutory notice, appreciates legal sagacity displayed by respondent co.'s junior advocate in getting the winding-up postponed and obtaining leave to pay the debt in instalments; Observes that HC's Division Bench has been inexplicably and unjustifiably considerate towards appellant, states that such kind of leniency has resulted in proliferation and prolongation of litigation, leading to an insurmountable litigation pendency, relies on its own ruling in Shrimati Jamilabai Abdul Kadar Vs Shankarlal Gulabchand (1975) 2 SCC 609 & State of Maharashtra v. Ramdas Shrinivas Nayak (1982) 2 SCC 463:SC
The order was passed by Justice Vikramajit Sen and Justice Shiva Kirti Singh
__._,_.___
No comments:
Post a Comment