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Issues: Whether the respondent-company's failure to comply with the stated time expectation for payment amounted to contempt of court for breach of undertaking.
Analysis: An undertaking given to a court can, in appropriate cases, be treated as having the force of an order, and breach of a clear undertaking may amount to contempt. At the same time, contempt jurisdiction is not attracted unless the undertaking and its breach are clear, and the surrounding circumstances show a deliberate or intentional violation. The undertaking here was not a categorical promise to pay by a fixed date, but a statement that time was needed to work out a payment schedule. The respondent also did not obtain any advantage by making the statement, because the winding up proceedings could not have progressed further once the company's sickness was brought before the Board under the special statutory regime, which stayed further proceedings without consent.
Conclusion: The respondent was not guilty of contempt, as there was no deliberate or intentional breach of undertaking.