2019 (2) TMI 945 - HC - Indian Laws

Reconstitution of the firm - re-opening of the Bar - compliance for the permission for Bar to be opened - Held that - The appellant is entitled to some lee-way insofar as the time prayed for making deposit - also, the Bar is remaining closed from September onwards. We are also persuaded by the fact that on our oral direction, the appellant has paid up ₹ 55 lakhs, exhibiting their bonafides. Considering the fact the licence expires on 31.03.2019, we cannot grant the time sought for by the appellant. We direct that 50% of the balance amounts be paid on or before 07.03.2019 failing which the license would stand cancelled on 08.03.2019. If such amounts are paid within the time stipulated, then, the appellant can be allowed to continue operating the Bar till 21.03.2019, by which time, the appellant will pay 50% of what is remaining to be paid after the remittance on 07.03.2019. Again the very same conditions would apply, if the payment is not made. On the second remittance also being made, the appellant shall be allowed to continue further and the entire amounts shall be paid within 31.03.2019. Appeal disposed off.

Summary

Issues:
1. Appeal against interim order for reopening a Bar.
2. Alleged violations in reconstitution of the firm.
3. Payment of demanded amounts for license renewal.
4. Timeframe for payment and consequences of non-compliance.

Analysis:
1. The appellant sought to reopen a Bar after complying with a direction to remit ?55 lakhs immediately and pay the balance within three months. The Government Pleader alleged serious violations in reconstitution of the firm, emphasizing the need for payment before license expiry on 31.03.2019 to avoid recovery issues. The Court acknowledged the appellant's compliance and financial constraints but stressed the necessity of payment for license renewal.

2. Despite finding no commendable ground to interfere with the Single Judge's order, the Court granted leeway for deposit time considering the Bar's closure since September. The appellant's payment of ?55 lakhs demonstrated their bonafides. The Court instructed the appellant to pay 50% of the remaining balance by 07.03.2019 to avoid license cancellation, with subsequent installments leading to full payment by 31.03.2019.

3. The Court's decision hinged on timely payments to avoid license cancellation and additional penalties. Failure to comply with the payment schedule would result in forfeiture of the right to apply for a license and a further penalty of ?25 lakhs to the Department. The writ appeal was disposed of with limited interference, allowing all issues to be raised in the writ petition without any cost orders.