High Court Order: Company faces winding up for non-payment. Payment schedule & consequences outlined.

The High Court of Calcutta admitted C.P.No.45 of 2013 against a company for failing to make timely payments as per the court order. The company was directed to pay the principal sum of &8377; 22,62,356 with interest at 8% per annum. A structured payment schedule was provided, escalating from &8377; 1.25 lakhs to &8377; 2 lakhs over time. Default would result in immediate winding up, with the Official Liquidator taking control. Compliance would lead to a permanent stay on the petition. The company was also liable for advertisement costs.

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Issues: Failure to make timely payment, admission of C.P.No.45 of 2013, payment schedule, consequences of default, winding up of the company, advertisement costs

The judgment delivered by the High Court of Calcutta addressed the issue of the company's failure to make timely payments as per the court order dated 7th May, 2013. Despite being directed to pay &8377; 30 lakhs in ten equal monthly instalments, the company could not honor the first payment on time, leading to the agreement between the parties failing. As a result, the court admitted C.P.No.45 of 2013 for the principal sum of &8377; 22,62,356, after giving credit for the belated payment of &8377; 6 lakhs. This admitted sum would accrue interest at 8% per annum on the reducing balance from the date of issuance of the statutory notice until realization.

Regarding the payment schedule, the court provided the company with an opportunity to settle the outstanding amount in a structured manner. The company was directed to make payments in varying amounts over different timeframes, starting with &8377; 1.25 lakhs for the first six months, increasing gradually up to &8377; 2 lakhs from the fourteenth instalment until the complete liquidation of the outstanding dues.

In the event of any default in payment, the judgment stipulated that the company would be wound up immediately. The Official Liquidator would then have the authority to take possession of the company's books, records, assets, and properties. Conversely, if the payments were made as per the schedule and the dues were cleared, C.P.No.45 of 2013 would be permanently stayed.

Moreover, the judgment mentioned that the company would be liable to pay the advertisement costs upon liquidation of the specified sums, unless agreed otherwise between the parties. Additionally, the court allowed for the provision of an urgent certified photocopy of the order to be supplied to the parties upon compliance with all necessary formalities. This comprehensive judgment aimed to address the non-compliance of payment obligations, provide a structured payment plan, and establish clear consequences for default while ensuring the protection of the petitioning creditor's interests.

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