KAIKHUSHROO PIROJSHA GHIARA Vs. CPSYNDICATE LTD

JUDGEMENT

(1.) This appeal has been filed by the appellant after obtaining special leave of this Court and it is directed against a judgment and order of a division bench of the Bombay High Court confirming the judgment and order of a single Judge of that Court by which he dismissed the appellant's motion for setting aside an insolvency notice taken out by the respondent- company.

(2.) The respondent-company is a private limited liability company in which there are only four shareholders, viz. Mrs. Byramji, Mr. and Mrs. Cassad and the appellant. In November, 1945, the company filed a suit (No. 1726 of 1945) in the High Court at Bombay against the appellant claiming a number of reliefs, which need not be set out here. Subsequently, Mrs. Byramji and Mr. and Mrs. Cassad applied to be made parties to the suit and they were joined as plaintiffs Nos. 2, 3 and 4 respectively. After the suit had been heard for some time, a settlement was arrived at between the parties and a consent decree was passed on July 15, 1947, in which the terms which are material to the decision of this appeal were these :

(3.) Clause 1(f) of the decree provided for payment of Rs. 12,50,000 by the appellant to the respondent in certain instalments. The first instalment of Rs. 2,50,000 was payable on or before October 15, 1947; the second instalment of like amount was payable on or before July 15, 1948; and the balance of Rs. 7,50,000 was payable in five subsequent equal annual instilments. It was further"" provided that if default was committed in the payment of any of the instalments for a period of one month after the due date fixed under the decree, the full amount then outstanding would forthwith become due and payable.