YORK EXPORTS LTD Vs. NOVA SURGIKOS LTD

JUDGEMENT

(1.) This contempt petition is filed by the petitioner invoking the provisions of 215 of the Constitution of India r/w Section 10 & 12 of the Contempt of Court Act seeking to initiate action against the respondents for alleged willful disobedience of judgment and order/undertaking given to this court on 13th May, 1999 in company petition No. 107/97.

(2.) The petitioner had filed company petition under Section 433 (e) of the Act seeking winding up of the respondent company on the ground that the respondent company owed a sum of Rs. 25 lacs which was a short term incorporate loan given by the petitioner to respondent no. 1, besides interest @ 14% per annum which had accrued thereon. During the pendency of this petition, the respondent admitted the dues and liability and also made some payment. On 13th May, 1999, the matter was supplied when the respondent agreed to pay to the petitioner balance principal amount of Rs. 17 lacs in quarterly instalments of Rs. 3 lacs each with interest @ 12% per annum on total principa amount of Rs. 25 lacs on reducing balance. Each of the said instalment was to be paid on or before 7th of the calender month. First instalment was to be made on or before 7th August, 1999. Respondent no. 2 who is the managing director of the company also gave an undertaking for making payment in the aforesaid terms. The statement of respondent no. 2, giving undertaking in this behalf is in the following terms:-

(3.) I admit that the respondent company presently owes a sum of Rs. 17 lacs to the petitioner company as principal. The respondent company is agreed to discharge the said liability of the respondent towards the petitioner in quarterly instalments of Rs. Lacs each. The company shall also pay to the petitioner interest @ 12 % per annum on the total principal amount of Rs. 25 lacs on reducing balances. I undertake to this court that payments in terms of my statement shall be duly made to the petitioner company in instalments as may be fixed by this court. The company shall remain bound by the statement made by me in court today. In the event of any default on the part of the respondent company in making payment of instalments, the entire amount due on that date along with upto date interest at the said rate of interest shall become due and payable to the petitioner company forthwith.