Clarification on Final Order in Writ Petition: Payment Schedule & Garnishee Order

The High Court of Madras clarified the effect of a final order in a writ petition challenging a 'Form-U' notice dated 19.04.2017. The Court directed the petitioner to pay arrears in four monthly instalments starting from 25.05.2017, with the garnishee order held in abeyance until full payment. Non-payment of any instalment would reinstate the garnishee order, and upon completion of all instalments, respondents 1 to 3 must lift the proceedings, ensuring compliance with the payment schedule and addressing the petitioner's concerns effectively.

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Issues:
Clarification of the effect of the final order passed in a writ petition regarding a 'Form-U' notice dated 19.04.2017.

Analysis:
The High Court of Madras was approached during a special sitting for clarification on the impact of a final order issued in a writ petition concerning a 'Form-U' notice dated 19.04.2017. The writ petition challenged the notice and sought a directive for respondents 1 to 3 to allow ten months for payment of arrears with interest. The impugned notice was for recovering a substantial sum from the TASMAC owed to the petitioner. The Court, in its previous order on 28.04.2017, permitted the petitioner to pay the arrears in four monthly instalments starting from 15.05.2017. As the Court did not explicitly address the effect of the impugned proceedings following the permission for instalment payments, a miscellaneous petition was filed seeking clarification.

During the hearing, it was highlighted that respondents 1 to 3 were not lifting the garnishee order in the absence of a specific direction from the Court. The petitioner argued that since they were allowed to pay in instalments, the garnishee order should not take effect until the payments were completed. Due to the imminent deadline for the first instalment, the petitioner requested a ten-day extension. Consequently, the Court clarified the previous order by setting out specific directives: the petitioner must pay the arrears in four monthly instalments starting from 25.05.2017, the garnishee order should be held in abeyance until full payment is made, failure to pay any instalment would automatically reinstate the garnishee order, and upon completion of all instalments, respondents 1 to 3 must lift the proceedings.

In conclusion, the Court provided clear instructions to address the petitioner's concerns and ensure compliance with the payment schedule, emphasizing the consequences of non-payment and the lifting of the garnishee order upon successful completion of the instalments.

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