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TMI Blog1993 (9) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts mentioned in each petition. It may be stated that the liability is in respect of lease rentals of the appliances and instruments leased by the petitioners to the said company. On filing of the petitions, but before their admissions, the parties arrived at settlement on March 22, 1993. The terms of settlement were reduced into writing and common consent terms embodying the terms of settlement were filed on the same day before the court. Under the said consent terms, the company agreed to pay to the petitioners an aggregate sum of Rs. 1,37,18,313 (rupees one crore thirty-seven lakhs eighteen thousand three hundred and thirteen only) plus balance of lease rentals and other charges payable under four lease agreements, by installments payable on stipulated due dates as mentioned in the said consent terms. The relevant clauses are reproduced hereinbelow : 1. The company, Maegaware Computers Limited, admits its liability of Rs. 1,37,18,313 (rupees one crore thirty-seven lakhs eighteen thousand three hundred and thirteen only) and balance lease rentals and delayed payments/other charges payable under four lease agreements bearing Nos. TCFC/233/89, TCF/32/89, TCFC/204/89 and TCF/3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is made under rule 7 of the Companies (Court) Rules, 1959. Naturally, the petitioners have vehemently opposed the said applications of the respondent-company. Two other creditors ( i ) Hope Leasing and Finance Ltd. (petitioners in Company Petition No. 435 of 1992), and ( ii ) Delight Electronics and Engineering Pvt. Ltd., decree holder in Summary Suit No. 3576 of 1990 against the respondent-company, have also appeared before the court in response to publication of advertisements who are also supporting the petitioners in the opposition of the application herein. Across, extensive arguments were advanced by both the sides. It would be convenient to notice the grounds in support as also against the respondent's application. As far as the respondent-company is concerned, it admits its liability and states that it has every intention to pay the same. It does not dispute the filing of the consent terms. That there is default in payment is also not disputed or denied. It pleads that on account of recession in the computer industry which is their principal and sole business that they could not arrange payment within the agreed and specified time. However, it is in the process of ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable as far as new business deal referred to. (7)That the court has no power to enlarge the time and no case has been made out for the same. (8)That the respondent-company has been using the leased appliances, without any payment. Rule No. 7 of the Companies (Court) Rules, 1959, is as under : "7. Power of court to enlarge or abridge time. The court may, in any case in which it shall deem fit, extend or abridge the time appointed by these rules or fixed by an order of the court for doing any act or taking any proceeding, upon such terms (if any) as the justice of the case may require and any such enlargement may be ordered although the application for the same is not made until after the expiration of the time appointed or allowed." The plain meaning of the said rule makes it manifestly clear that it empowers the court to extend or abridge the time appointed by or fixed by an order of the court, for doing any act... etc. It also gives power to the court to enlarge time notwithstanding the fact that the application for the purpose is made after the expiry of the stipulated time. In the matter in hand, it is true that the company has not been diligent or prompt enough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to grant such reliefs as claimed in the instant case. The case in question is Marketing and Advertising Associates Pvt. Ltd. v. Telerad Pvt. Ltd. [1969] 39 Comp. Cas. 436 (Bom), which contains the judgments of the company judge and also in appeal therefrom of the Division Bench, luminously discussing the legal provisions directly on the point, needing no further elaboration, and which lend support to the view I have disposed to take in this case. Hence, the following order. (1)Judge's summons made absolute in terms of prayers ( a ), ( b ) and ( c ) which read : ( a )that the delay in taking out the present application be condoned; ( b )that the time for making payments of the petitioners' dues under the consent terms dated March 22, 1993, be extended to May, 1994 ; ( c )pending the hearing and final disposal of the application, the hearing and final disposal of the petition be stayed. (2)The above reliefs are subject to the following : ( i )That the terms embodied in the consent terms dated March 22, 1993, and filed in the court will not affect in any manner whatsoever save and except the extension of time for the payment in terms of prayer ( b ) above, fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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