Supreme Court directs prompt payment of dues within 45 days, warns of Winding-up for non-compliance.

The Supreme Court set aside the Division Bench's decision, directing the Respondent to promptly pay admitted dues, interest, costs, and TDS amounts within 45 days. Failure to comply would allow the Appellant to move for Winding-up. The Court stressed timely debt repayment, criticized undue leniency, and modified the Single Judge's Orders to prevent abuse of the judicial process and unnecessary litigation prolongation.

---

---

Issues:
Appeal against Order setting aside concession made by Junior Counsel.

Analysis:
The Appeals challenged the Order passed by the Division Bench of the High Court, setting aside the Company Judge's rejection of the Respondent's plea regarding a concession made by the Junior Counsel. The Appellant filed Winding-up petitions against the Respondent for outstanding debts, even after a statutory Notice under the Companies Act. The Respondent admitted the debts but offered to pay in installments to avoid Winding-up. The Company Judge accepted this arrangement. However, the Division Bench set aside this Order, leading to further litigation.

The Company Judge rejected the Respondent's plea for re-hearing or modification of the consent Order, emphasizing that the Junior Counsel's concession was rightly made to avoid adverse consequences. The Respondent's conduct was deemed not bona fide, leading to the dismissal of their petition with costs. The Division Bench, however, remanded the case for rehearing, questioning the concession made by the Counsel. The Appellants argued that the Division Bench's leniency towards the Respondent only prolonged the litigation, citing relevant legal precedents.

The Supreme Court found no justification for the Division Bench's decision, emphasizing that the Respondent had abused the judicial process to delay debt repayment. The Court set aside the impugned Order and directed the Respondent to pay the admitted dues, interest, costs, and TDS amounts within 45 days. Failure to comply would allow the Appellant to move the Company Judge to admit the Winding-up petition promptly. The Court highlighted the importance of timely debt repayment and criticized undue leniency leading to prolonged litigation.

In conclusion, the Supreme Court allowed the Appeals, modifying the Orders of the Single Judge to ensure prompt payment of admitted dues by the Respondent. The Court emphasized the need to avoid abuse of the judicial process and promptly settle acknowledged debts to prevent unnecessary prolongation of litigation.

---