The Court granted the Judgment Debtors two extended months to pay the decretal amount in two equal instalments. Payment compliance would satisfy the decree and make the motion absolute; default would result in dismissal.
Admitted conditional payment in two instalments by January 15, 2007 and February 19, 2007 with consequences linked to payment.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN INSOLVENCY
NOTICE OF MOTION NO.128 OF 2006 IN INSOLVENCY NOTICE NO.N/92 OF 2006
Re :R. J. Construction & Ors. ...Jt.Debtors. Ex-parte: Shri Ashwin Desai. ...Jt. Creditor.
...Jt. Creditor.
.... Mr. Z.A. Jariwala forthe Judgment Debtors. Mr.Sunil Patel i/b. M/s.Sunil & Co. for the Judgment Creditor.
CORAM : DR.D.Y.CHANDRACHUD, J.
DECEMBER 19, 2006 .
P.C.
The Insolvency Notice is based on a decree passed by
this Court on 6th September 2005 in Summary Suit 3665 of 2002. The decree was passed in terms of the Consent Terms that were arrived at between the parties. The Consent Terms provide that the Judgment Debtors agree to pay an amount of Rs.10 lakhs before 31st December 2005 failing which they were liable to pay interest at the rate of 9% per annum from the date of the decree till payment on the decretal amount.
Counsel appearing on behalf of the Judgment Debtors
has only submitted that two months' time may be granted to pay
the decretal dues. In the circumstances, the following conditional order is passed :
-(i) In the event that the Judgment Debtors pay the decretal amount in pursuance of the order passed by this Court in terms of the Consent Terms in Summary Suit 3665 of 2002 in two equal instalments, the first of Rs.5 lakhs on or before 15th January 2007 and the balance on or before 19th February 2007, the decree shall be marked as satisfied and the Motion shall stand made absolute in terms of prayer clause (a);
-(ii) In the event that the Judgment Debtors fail to pay the instalments or any part thereof, the Motion shall stand dismissed;
-(iii) Counsel appearing on behalf of the Judgment Creditor undertakes to inform the Insolvency Registrar in the event of there being any default, failing which, the Insolvency Registrar shall presume that full payment has been made and the Notice of Motion shall accordingly stand absolute.
1 issue framed by the court
Whether an extension of time for payment of decretal dues in insolvency proceedings is maintainable.
R. J. Construction & Ors.
Shri Ashwin Desai
D.Y. Chandrachud
As recorded by the court registry
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