SAI INTERNATIONAL Vs. KAIZER

JUDGEMENT

(1.) THIS order is being passed in continuation of the order dated 27.1.2015. On the said date, learned counsel for the plaintiff had stated that as per the settlement arrived at between the parties and recorded in the Settlement Agreement dated 7.11.2014, the defendants had agreed to pay a sum of Rs. 35 lacs to the plaintiff in full and final settlement of all its claim against them and out of the said amount, the defendants were required to pay the plaintiff the first installment of '6 lacs, on or before 31.12.2014. Learned counsel for the plaintiff had submitted that out of the first installment of Rs. 6 lacs, the defendants have only paid a sum of Rs. 5 lacs and a sum of Rs. 1 lac was still outstanding.

(2.) IN view of the aforesaid position, it was deemed appropriate to direct the presence of the defendant No.3, authorized on behalf of the defendants to sign the Settlement Agreement, to remain present today.

(3.) DEFENDANT No.3 is present in court and states that a sum of Rs. 1 lacs has been transferred through RTGS to the account of the plaintiff yesterday and therefore, the first installment stands paid. Both the parties point out that the balance agreed amount is to be paid in two installments, the second installment of Rs. 10 lacs, being payable on or before 31.3.2015 and the third and final installement of Rs. 19 lacs being payable on or before 30.6.2015. They state that in terms of clause 7(iii) of the Settlement Agreement, it was agreed by the parties that in event the installments are not paid by the defendants on or before the due dates, the delayed payment shall carry interest @ 18% p.a. on the outstanding amounts. However, the Settlement Agreement is silent with regard to the extent of default permitted to the defendants.