Abatement of appeal on winding-up ceases once the winding-up order is recalled, restoring the proceedings.

An appeal and stay application that had been treated as abated under Rule 22 of the CESTAT Procedure Rules because of a company's winding-up order were restored after the winding-up order was recalled. The recall followed the company's clearance of its creditors' dues, removing the basis on which abatement had been recorded. Once that foundation ceased to exist, the earlier dismissal could not be sustained, and the proceedings were reinstated to their original numbers.

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Issues: Whether the appeal and stay application, earlier dismissed as abated on account of the company's winding-up order, were liable to be restored after the winding-up order was recalled.

Analysis: The appeal had been treated as abated under Rule 22 of the CESTAT Procedure Rules because the company had been ordered to be wound up. The High Court subsequently recalled the winding-up order after noting that the company had cleared the dues of its creditors. Once the basis for abatement ceased to exist, the earlier dismissal could not be sustained.

Conclusion: The dismissal order was recalled and the appeal and stay application were restored to their original numbers.

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