VIVEK SARIN Vs. MULTI METAL UDYOG

JUDGEMENT

(1.) The respondent, Multi Metal Udyog, through the present miscellaneous application filed by it under section 151 of the Code of Civil Procedure, 1908, read with the provisions of the Contempt of Courts Rules, 1973, seeks vacation of the stay order dated June 8, 1998. While admitting the appeal preferred by the appellant, Vivek Sarin, the Bench stayed operation of the impugned judgment under appeal till further orders. C. A. C. P. No. 3 of 1998 was filed by Vivek Sarin against the judgment of the learned single judge, vide which he has been held guilty of committing contempt and ordered to pay a fine of Rs. 500 within a period of two months or in default thereof to undergo simple imprisonment for one month. He was further directed to pay the entire balance amount within two months from the date of order.

(2.) Before the contentions raised by counsel for the parties in support or opposition to the civil miscellaneous application are noticed, it will be useful to trace, although in brevity, the facts giving rise to C. A. C. P. No. 3 of 1998. The respondent, Multi Metal Udyog, had filed a petition under section 433 read with section 434 of the Companies Act, 1956, for winding up of Apex Multitech Limited said to be indebted to the respondent for a sum in the tune of Rs. 12 lakhs. The petition was admitted and was ordered to be published in two newspapers. Aggrieved, Apex Multitech preferred an appeal. During the currency of the appeal the appellant gave an undertaking that the entire amount of Rs. 10 lakhs would be paid in ten monthly instalments of Rs. 1 lakh each and the first instalment was to be paid before July 1, 1997, and, thereafter, each instalment on the first of every month. An undertaking was also given that if Apex Multitech Limited failed to make the payment of even one instalment on any account, the proceedings under the Contempt of Courts Act could be initiated against it. The order of the court depicting the undertaking of the appellant that came to be passed by the court reads thus:

(3.) It is stated by learned counsel for the parties that a sum of Rs. 5 lakhs was paid and, thereafter, there was default in making the payment. That constrained the respondent to file a contempt petition in this court with the result as indicated above.