Winding-up settlement by instalments: Court modified the order, stayed the petition on compliance, and preserved revival on default.

Where an admitted liability is settled in winding-up proceedings, the Court may mould the order to reflect the parties' arrangement and secure payment by instalments. Here, the parties agreed to payment in 12 equal monthly instalments, and the Court modified the earlier direction accordingly, keeping the petition permanently stayed upon compliance. A default mechanism was preserved so the petition could be advertised again if any instalment was not paid, while gazette publication was dispensed with and no order as to costs was made.

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Issues: Whether the winding-up petition should be admitted and whether the prior direction for security should be modified to permit payment of the admitted liability in instalments with consequential stay of the petition.

Analysis: The parties arrived at a consensual arrangement for payment of the admitted amount in 12 equal monthly instalments. The Court gave effect to that arrangement by modifying the earlier order, directing payment in the agreed manner and providing that the petition would remain permanently stayed upon compliance. A default clause was retained to permit advertisement of the petition in the event of non-payment of any instalment, while dispensation of gazette publication and no order as to costs were also recorded.

Conclusion: The petition was admitted and the earlier order was modified to permit payment by instalments, with permanent stay of the petition upon due compliance and revival by advertisement on default.

Final Conclusion: The winding-up proceedings were disposed of in terms of the parties' settlement, subject to the petitioner's protective remedy in the event of default.

Ratio Decidendi: Where the parties settle an admitted liability in winding-up proceedings, the Court may mould the order to enforce payment by instalments and provide for stay of the petition subject to compliance and revival on default.

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