Hindustan Power Projects (P) Ltd. v. Gao Ji Fan & Ors.

CONSTITUTION OF INDIA,

--Winding up petition--Settlement Agreement Delay in payment of outstanding dues--Revival of winding up petition--Where HPPL had made the payment along with interest for the delay period and the company had accepted such payment in extended period then, merely on account of the delay in making payment, the revival of winding up petition was not justified.--Company filed a winding up petition against HPPL for non-payment of certain amount. During the proceedings, the parties entered into a settlement agreement wherein HPPL undertook to pay the outstanding amount in instalments. It was also agreed that if HPPL was unable to make the payment within the stipulated schedule, the entire outstanding amount would become payable with interest immediately. HPPL made the payment of agreed amount in terms of settlement agreement but with delay. Company filed an application seeking revival of winding up proceedings in view of default committed by HPPL on the ground that the payment was not made within the stipulated time period. Therefore, HPPL filed contempt petition against the company. Held: HPPL was unable to make the payment within stipulated time, but it had made the payment along with interest for the delay period. Therefore, on account of the delay in making payment by HPPL, it would not be justifiable to vitiate the efforts made by the court to conclude the settlement as the amount along with interest had been received by the company. Hence, there was no justification to revive the winding up petition.