2015 (5) TMI 1206 - HC - Companies Law

Instruction to accept the defendants offer of payment alongwith interest - HELD THAT - Defendants are directed to pay to plaintiff ₹ 4,00,00,000/- along with simple interest @ 12% per annum within twelve weeks. But, 25% of the principal sum, namely, ₹ 1,00,00,000/- shall be paid on or before 7th July, 2015. It is also agreed between the parties that in the event of default of payment of 25% of principal amount within the time stipulated here in above, the entire suit shall stand decreed. The present suit is decreed in favour of the plaintiff.

Summary

Issues: Settlement agreement on payment terms in a civil suit.

In this judgment, the main issue revolved around a civil suit where the plaintiff's counsel informed the court about a change in management and the acceptance of the defendants' offer of payment. The plaintiff agreed to accept a payment of Rs. 4,00,00,000/- along with 12% per annum interest, subject to the condition that 25% of the principal sum is paid within one week. The defendants, represented by their Managing Director, agreed to pay 25% of the principal sum within six weeks and the remaining balance with accrued interest within eight weeks thereafter. Both parties' statements were accepted by the court, binding them to the agreed terms.

The court directed the defendants to pay Rs. 4,00,00,000/- along with 12% per annum interest within twelve weeks, with the initial 25% of the principal sum, i.e., Rs. 1,00,00,000/- to be paid on or before 7th July, 2015. It was further agreed that failure to pay the 25% of the principal amount within the stipulated time would result in the entire suit being decreed in favor of the plaintiff. Consequently, the court decreed the present suit in favor of the plaintiff based on the agreed terms, instructing the registry to prepare a decree sheet.