*1* cp.143.08.sxw kps I N THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO.143 OF 2008 Tejas Dhiraj Shah. ..Petitioner -Versus- M/s Sanika Chemicals Pvt.Ltd.. ..Respondent .......... Mr.Zal Andhyarujina a/w Ms.Sheetal Shah i/b Mehta & Girdharilal, for the Petitioner. Mr.N.R. Pradhan i/b S.L.Mhatre, for the Respondent. .......... CORAM : S.J. VAZIFDAR, J. DATE : 04th August, 2010. P.C. 1 The matter was heard on 28th July, 2010. I must state here that on that day I had dictated the judgment in open Court and I was about to pronounce the order in open Court including the operative part. At that stage, the learned counsel appearing on behalf of the Company requested me not to pronounce the order and judgment. He stated that the Company has now turned the corner and is now desirous of paying the Petitioner’s dues. Therefore, at his request I adjourned the matter to today. 2 The learned counsel appearing on behalf of the Company states that during the last couple of years the Company has turned the corner and is doing well. He further states that there are 85 workers who would be rendered jobless if the Company is wound up. He states that although the Company is doing well today and it is *2* cp.143.08.sxw making profits, there are other expenses which are required to be met. For these reasons, he seeks permission to make payments in installments. 3 Considering the nature of jurisdiction exercised by the Company Court in a winding up proceeding, I do not find this request unreasonable. 4 The Petitioner had filed an affidavit dated 02nd December, 2009 in which he relied upon the admission made on behalf of the Company in a writing dated 06th July, 2009. In that writing, the Company agreed to pay Rs.3.45 lacs immediately and a further sum of Rs.3.45 lacs by 31st August, 2009. The Company further agreed to pay the principal amount of Rs.15.48 lacs within 12 months with interest at 15% p.a.. The Petitioner accepted the cheque in the sum of Rs.3.45 lacs and encashed the same. The balance amount of Rs. 3.45 lacs towards interest and Rs.15.48 lacs towards principal is not paid. 5 In my opinion, the ends of justice would be met by requiring the Company to pay the admitted amounts of Rs.15.48 lacs towards principal and Rs.3.45 lacs towards interest. Further the Petitioner would be entitled to interest at 15% p.a. upto the date of this order. The interest component ought to be paid on or before 15th October, 2010. The principal amount of Rs.15.48 lacs ought to be paid in 30 equal monthly installments with interest at 12% p.a. on reducing balance. This payment would satisfy what the Petitioner at one stage agreed to accept. I appreciate that this was subject to the Company complying with the schedule stated herein. However, *3* cp.143.08.sxw considering the jurisdiction I am exercising, the fact that there are 83 employees and the advantages in not winding up the Company, I believe this would for the purpose of this Petition meet the ends of justice. 6 Mr.Andhyarujina submitted that the Petitioner’s claim is higher especially in view of the contractual rate of interest being 24% per annum. 7 However, for the reasons stated earlier I do not intend winding up the Company at this stage. Moreover, I intend keeping the Petitioner’s claim for the alleged balance amount alive. 8 In the circumstances, the following order is passed with the consent of the Company:- (i) The Company shall pay the Petitioner an amount of Rs.5 lacs on or before 15th October, 2010. (ii) The Company shall also pay the Petitioner a sum of Rs. 15.48 lacs. This amount of Rs.15.48 lacs will be paid in 30 monthly installments payable on or before the tenth day of each month commencing from 10th September, 2010. The first 29 installments shall be of a sum of Rs. 50,000/- each. The 30th installment shall be of Rs. 98,000/-. The Company shall also pay along with each installment, the interest on the reducing balance. All the payments shall be made by pay orders. (iii) In the event of there being a single default in making the aforesaid payments, the petition shall be made absolute in terms of prayer clauses (a) and (b) without further *4* cp.143.08.sxw order of the Court. (iv) In the event of the Company being wound up, the Petitioner shall be entitled to make a claim for the entire amount which according to him is due and payable by the Company. (v) In the event of the entire amount being paid as aforesaid and no other creditor coming forward in the meantime, the petition shall stand dismissed. (vi) Till the entire amount is paid, the Company shall not alienate, dispose of, encumber, part with possession of or create any third party right, title or interest in, to, upon or in respect of its immovable properties without the leave of this Court. (vii) The Petitioner shall be entitled to adopt any other proceedings for payment of any further amount which according to him is due and payable to him by the Company including towards further interest. (viii) This order is passed at the request and with the consent of the Company but not of the Petitioner. (ix) There shall be no order as to costs. -