ASHA BHOSLE Vs. MAGNASOUND INDIA LTD

JUDGEMENT

(1.) HEARD learned Counsel for the parties. The respondent Company is engaged principally in the business of production of audio and video cassettes and compact discs. The petitioner is a well-known artist who has given play back music to several movies and also has sung various songs for different audio and video cassette and compact disc producers. Albums of certain songs sung by the petitioner were made by the respondent company for royalty amounts to be paid to the petitioner on sale of such albums. According to the petitioner, though several albums cassettes and compact discs of the songs of the petitioner's were sold and the price was received by the respondent Company, still it did not make the payment of the amount of royalty due to her. The petitioner therefore, filed the summary Suit No. 1873 of 2003 against the respondent Company for the recovery of Rs. 66,74,780/- being the value of the royalty for the sales made till then and for interest thereon. In the said suit, the respondent Company admitted the liability to pay the dues of the petitioner and accordingly, a decree in terms of the consent terms was passed on 1st October, 2002. Under the said consent decree, the respondent Company was to pay to the petitioner a sum of Rs. 66,74,780/- together with interest thereon at the rate of 15% p. a. from 1/07/2001 and a further sum of Rs. 43,39,095/- together with interest thereon at the rate of 15% p. a. from 1/04/2000 till payment. The petitioner agreed to permit the respondent Company to pay the dues in four instalments. The first instalment of Rs. 16,82,000/-was to be paid before 30th April, 2002 and second instalment of the like amount was to be paid on or before 28th April, 2003. The third instalment of Rs. 39,24,000/- was to be paid on or before 30th June, 2003 and the balance of Rs. 39,25,000/- was to be paid on 31st August, 2003 along with the costs of the suit. It was agreed on behalf of the respondent Company that on payment as the aforesaid decree shall be marked as satisfied.

(2.) PENDING the adjudication in the suit, the petitioner also filed the present Company Petition No. 719 of 2002 against the respondent for winding up. An order in terms of the consent terms agreed between the parties was passed in the Company Petition on 7th October, 2002. It was agreed that in the event of the respondent Company making payment as per the consent terms filed in the suit (copy of which was annexed as Exhibit i) the Company Petition shall stand disposed of, but in the event of the respondent Company committing any default in the payment persisting for 30 days, the Company Petition shall stand admitted without further reference to the Court.

(3.) IT is not in dispute that the respondent Company has not paid the first instalment of Rs. 16,82,000/- which was due on 30th December, 2002 and the default persisted for a period of more than 30 days. Therefore, as per the order dated 7th October, 2002 Company Petition No. 719 of 2002 stands admitted. It is also not disputed that even the second instalment of rs. 16,82. 000/- which was due on 28th April, 2003 has also not been paidtill date.