Time extension for clearing corporation compliance granted after bona fide efforts to meet net worth requirements continued.

The time fixed in an earlier judgment for establishing a clearing corporation or tying up with another eligible clearing corporation was extended, as the applicants had shown continuing steps to complete the required arrangement and no dilatory conduct or lack of bona fides was found. The court treated the pending sale of land and efforts to secure recognised clearing corporation arrangements as sufficient justification to enlarge the compliance period. The stipulated period was therefore extended by a further six months from the date of the order.

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Issues: Whether the time granted in paragraph 30 of the judgment dated 19 February 2024 for establishing a clearing corporation or tying up with another eligible clearing corporation should be extended.

Analysis: The earlier direction had required compliance within six months, but subsequent correspondence showed continuing steps by the applicants toward sale of land and arrangement with recognised clearing corporations to achieve the prescribed net worth. The conduct of the applicants was not found to be dilatory, and no lack of bona fides was attributed to them. In these circumstances, the period fixed in the earlier judgment was liable to be enlarged.

Conclusion: The time stipulated in paragraph 30 of the earlier judgment was extended for a further six months from the date of the order.

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