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Contempt of court for failure to fulfill undertaking in a settlement agreement. Analysis: 1. The petitioner filed an application for contempt of court against the respondent for failing to honor an undertaking given in a settlement agreement. The petitioner claimed that the respondent only paid Rs. 24,000 out of Rs. 65,000 as per the undertaking, resulting in outstanding dues of Rs. 41,000. The petitioner alleged that the respondent's failure to fulfill the undertaking was deliberate and willful, constituting contempt of court. 2. The petitioner's advocate argued that the respondent's director had given the undertaking, and the failure to comply with it amounted to contempt of court. The advocate cited a previous case where a similar undertaking was given and emphasized the importance of honoring such commitments. However, the judge noted that the Company Court, where the original petition was filed, is not meant for passing money decrees but for ordering winding up of companies under specific grounds. The judge highlighted that the court did not act on the settlement terms, and the petitioner withdrew the petition based on the respondent's agreement to pay the dues, not on a court order. 3. The judge emphasized that for contempt of court to be established, it must be proven that the breach or disobedience was willful and in violation of a court undertaking that the court relied upon. In this case, the judge found that the court did not rely on the undertaking to pass any order. The judge also noted that the application for contempt was filed beyond the permissible time limit of one year from the alleged contemptuous act, further weakening the petitioner's case. 4. Ultimately, the judge concluded that the application for contempt was not legally sustainable and rejected it, with no order as to costs. The judgment highlighted the specific legal requirements for proving contempt of court, the limitations of the Company Court's jurisdiction in monetary matters, and the importance of timely filing such applications within the prescribed period. This detailed analysis of the judgment provides a comprehensive understanding of the legal issues involved, the arguments presented by the parties, and the court's reasoning in reaching its decision regarding the contempt application.
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