JITESH TRADING CO. Vs. GITA FABRICS P. LTD.

JUDGEMENT

(1.) THIS petition is filed under the Contempt of Courts Act to take necessary action against the respondents, as they have not honoured the promise and undertaking given by them in Company Petition No. 152 of 1985. The promise is as per the consent terms. The undertaking is given by one J. P. Patel and P. J. Patel to the effect that in case the company fails to pay the amount agreed as per the consent terms, they agree to make them personally liable to pay the same. It is the case of the petitioner that in view of the promise and undertaking, they were made to withdraw Company Petition No. 152 of 1985 with a liberty to revive and that the respondents by not complying with the consent terms and the undertaking, have committed wilful breach of the same. It is, therefore, prayed for taking action under the Contempt of Courts Act.

(2.) IF one reads the consent terms, it is clear that the company has agreed to pay the principal amount by way of 12 monthly instalments. By undertaking, one J. P. Patel and P. J. Patel, respondents Nos. 2 and 3 herein, have personally undertaken the liability to pay the same if the company does not pay the amount agreed to therein on account of its being wound up or otherwise. This is an order passed by the company court in terms of the consent terms and undertaking.

(3.) IN the case of Alhar Co -operative Credit Service Society v. Sham Lal (Civil Appeal No. 2050 of 1990 arising out of S. L. P. (C) No. 1770 of 1990), the Supreme Court has observed as under :