Supreme Court grants stay on winding-up order, allows withdrawal of settlement offer

The Supreme Court allowed applications for permission and exemption, noting the withdrawal of a settlement offer by the respondent. The petitioner's counsel handed over payment totaling &8377; 7,60,00,000/- with conditions. As a result, the winding up order was stayed, and the respondent was granted six weeks to file a reply before further proceedings.

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Issues involved: Settlement offer withdrawal, payment made, stay on winding up order, time granted for reply filing.

The Supreme Court heard the counsel for both parties and allowed applications for permission and exemption, issuing a notice since the respondent's counsel appeared without the need for formal notice. It was noted that a settlement offer of &8377; 7,52,66,667/- made by the respondent during the winding up petition was no longer available. However, the petitioner's senior counsel handed over two demand drafts totaling &8377; 7,60,00,000/- to the respondent's counsel in court, with the condition that the respondent would accept the amount without prejudice to its rights. Consequently, the order directing the Official Liquidator to take charge of the petitioner Company and the publication of the winding up order were stayed due to the payment made. The respondent was granted six weeks to file a reply, with further proceedings listed thereafter.

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