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        Companies Law

        2008 (3) TMI 469 - SC - Companies Law

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        Decretal amount correction and instalment payment with conditional stay of garnishee proceedings The decretal figure was corrected to reflect the full liability after giving credit for amounts already recovered by the Custodian, so the recorded sum ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Decretal amount correction and instalment payment with conditional stay of garnishee proceedings

                                The decretal figure was corrected to reflect the full liability after giving credit for amounts already recovered by the Custodian, so the recorded sum did not remain overstated. The Court also approved a structured instalment schedule for payment of the balance decretal amount and kept the garnishee proceedings in abeyance subject to timely compliance, with default reviving the earlier order. The appeal was thus disposed of by adjustment of the decretal amount and conditional suspension of execution pending phased payment.




                                Issues: (i) whether the decretal amount could be corrected to reflect the total liability after accounting for amounts already recovered; (ii) whether time for payment of the balance decretal amount could be granted in instalments with the execution proceedings kept in abeyance pending compliance.

                                Issue (i): whether the decretal amount could be corrected to reflect the total liability after accounting for amounts already recovered

                                Analysis: The record showed that two decrees had been passed against the appellant, but the earlier order and the execution material disclosed both liabilities. The Court accepted that the decretal figure recorded in the operative order did not accurately reflect the full principal sum, and that credit had to be given for the amount already recovered by the Custodian.

                                Conclusion: The decretal amount was liable to be corrected and reduced by giving credit for the amount already recovered.

                                Issue (ii): whether time for payment of the balance decretal amount could be granted in instalments with the execution proceedings kept in abeyance pending compliance

                                Analysis: The Court accepted a structured payment schedule for the balance amount, linking continuation of the stay on the garnishee proceedings to timely payment. It directed payment in instalments within a fixed period and provided that default would revive the earlier order.

                                Conclusion: Time for payment was granted in instalments and the garnishee proceedings were kept stayed subject to compliance.

                                Final Conclusion: The appeal was disposed of by correcting the decretal figure, adjusting for amounts already recovered, and permitting phased payment of the balance with a conditional stay of execution.


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                                ActsIncome Tax
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