Company-court inherent power supports rescheduling instalments in winding-up matters to do substantial justice, without disturbing the final decision.
A High Court exercising company-court jurisdiction may, in appropriate cases, use its inherent powers under Rule 9 of the Companies (Court) Rules, 1959 to mould or reschedule instalment relief so as to do substantial justice, provided the ultimate decision is not disturbed. The Code of Civil Procedure does not override the special company-court rules where there is no conflict, and the court may correct its own mistake as a court of record. On that basis, an application to alter the payment schedule in a winding-up matter was treated as maintainable even after disposal of the appeal, with limited relief granted by deferring the proposed rescheduling while continuing the existing monthly payment obligation.
Issues: Whether the Court could entertain an application to reschedule instalments in a winding-up matter after the appeal had been disposed of, and whether such relief could be granted in exercise of inherent and company-court powers.
Analysis: The Court held that the earlier order had not placed the matter beyond the reach of the Division Bench merely because the appeal had been disposed of. It relied on the company court's power to do substantial justice and held that the High Court, as a court of record, could correct its own mistake and mould relief without affecting the ultimate decision. It further held that the provisions of the Code of Civil Procedure do not override the special company-court rules where there is no conflict, and that Rule 9 of the Companies (Court) Rules, 1959 preserves inherent power. The Court distinguished the authorities cited against maintainability and found that they did not bar consideration of the present request for rescheduling.
Conclusion: The application was maintainable, and the Court could modify the payment schedule in aid of substantial justice.
Final Conclusion: The company was granted limited relief by deferment of the proposed rescheduling, while the existing monthly payment obligation was continued and the matter was kept open for further rescheduling before the Company Judge if compliance continued.
Ratio Decidendi: A High Court exercising company-court jurisdiction may, in appropriate cases, invoke its inherent powers and the special company-court rules to mould or reschedule instalment relief in order to do substantial justice, provided the ultimate decision is not disturbed.
TaxTMI 
AI Drafter ✕
TaxTMI 
