Settlement enabled recall of provisional liquidator appointment, subject to payment of Official Liquidator dues, and withdrawal of the petition.

Following settlement between the parties, the Delhi High Court recalled its earlier order admitting the company petition and appointing the Official Liquidator as provisional liquidator. The recall was made subject to payment of the Official Liquidator's dues, including expenses incurred on security and related items, and the premises were directed to be de-sealed and handed over after such payment. The petition was then dismissed as withdrawn, bringing the dispute to an end in accordance with the full and final settlement recorded before the Court.

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Issues: Whether the order admitting the company petition and appointing the Official Liquidator as provisional liquidator should be recalled on the basis of settlement between the parties, and the petition dismissed as withdrawn.

Analysis: The parties informed the Court that the dispute had been settled and that demand drafts totalling the agreed amount had been handed over in full and final settlement. The Official Liquidator also stated that expenses had been incurred on security and other items. The Court therefore recalled the earlier order admitting the petition and appointing the Official Liquidator as provisional liquidator, but made the recall of the provisional liquidator's appointment contingent on payment of the Official Liquidator's dues. The Official Liquidator was directed to de-seal the premises and hand over possession upon such payment.

Conclusion: The order dated 20.09.2017 was recalled subject to payment of the Official Liquidator's dues, and the petition was dismissed as withdrawn.

Final Conclusion: The dispute was brought to an end through settlement, resulting in recall of the earlier company-court directions and closure of the petition.

Ratio Decidendi: Where the parties have settled the dispute and the Court is satisfied that the settlement resolves the underlying claims, earlier interim or admission orders may be recalled, subject to protection of the Official Liquidator's legitimate dues, and the petition may be permitted to be withdrawn.

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