Decided on April 04,1996



BABOO LALL JAIN - (1.)This is an application made by Shalimar Paints Ltd. pursuant to the Judge's summons taken out on 7th July 1994. The said Shalimar Paint inter alia wanted it to be recorded that the order dated 30th January, 1992 has stood discharged and/or satisfied upon payment and/or adjustment as mentioned in paragraph 21 of the affidavit in support of the said petition. It also prayed for return of extra sum of money alleged to be paid by it to M/s. Metal Box India Ltd., being the petitioning creditor. It also prayed for injunction restraining the petitioning creditor from taking any steps in terms of the order dated 30th January, 1992 until the disposal of the application.
(2.)On 30th January, 1992 the Hon'ble Division Bench of this Court inter alia held that they are of the view that Metal Box India Ltd., the appellant was entitled to a sum of Rs. 24,00,000/- from Shalimar Paints Ltd., 4 which the appellant Metal Box had agreed to accept in full and final satisfaction of its claim in the winding up petition. The winding up petition was therefore admitted by the Hon'ble Appeal Court. The Hon'ble Appeal Court by the said order directed payment of Rs. 1,00,000/- to be made by 5th February, 1992 and thereafter in monthly instalments from the month of March, 1992 of Rs. 75,000/- per month to be paid by the end of each month until entire dues are fully paid along with interest at the rate of 9% on the reducing principal sum of Rs. 16,00,000/-. It was also directed that in default of payment of any two instalments the winding up petition shall be proceeded with and the appellant will be at liberty to mention before the Company Judge for appropriate directions in that behalf.
(3.)Thereafter by an order dated 11th February, 1992 the Hon'ble Appeal Court extended the time for payment. It was inter alia ordered that the time to make the first payment of Rs.1,00,000/- on 5-2-92 was extended till 25th February, 1992. In default of payment of a sum of Rs. 1,00,000/- or in default of payment of any two instalments of Rs. 75,000/- or the last instalment, the default clause mentioned in the aforesaid order will be operative. By the said order, the Appeal Court continued the interim order of injunction against the company i.e. Shalimar Paints Ltd. Shalimar Paints thereafter went to the Hon'ble Supreme Court by way of' Special Leave Petition. The Supreme Court by its order dated 10th March, 1992 relegated the appellant to the High Court with the observation that it may be open to the petitioners to move an appropriate application before the High Court for such relief or modification as may be considered necessary. It was inter alia submitted on behalf of the appellant Shalimar Paints before the Hon'ble Supreme Court that the order of injunction will prevent the company even from running its business in the normal course.

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