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2020 (11) TMI 358 - Tri - Companies LawEnlargement of period of payments by granting 6 more months’ time to make the first tranche of payments and to make subsequent tranches payments with 6 months difference each - HELD THAT:- It is clear from the very language of the Office Memorandum that the same has been issued in the limited context of disruption of supply chains, and contractual breach occurring therefrom. The Memorandum of Settlement is undoubtedly neither a procurement contract nor any such class of contract where a 'disruption of the supply chains' would result in a breach of the contract between the parties. It is merely a settlement agreement under which the Respondents herein have withdrawn pending legal proceedings against the Applicants and the Applicants have undertaken the reciprocal obligation of purchasing the shares of the Company held by the Respondents at the rate and within the time frame as agreed under the Memorandum of Settlement. Therefore, the Office Order sought to be relied upon by the Applicants is not relevant to this case and the Applicants cannot refuse to perform their obligations under the Memorandum of Settlement seeking refuge under the same. There is a breach of undertaking between the parties. The TCP/25/KOB/2019 was disposed of on certain agreements between the parties. Applicants herein cannot absolve from the responsibility in making the payments to the Respondents, as believing the undertaking in the Memorandum of Settlement the Respondents had undertaken Financial Commitments with others. Considering the pandemic situation, in order to avoid litigation, the Respondents have already accepted the request of the Applicants for extension of time till 15.08.2020. However, without carrying out their obligation as per the Order dated 17.02.2020 in TCP/25/KOB/2019, they have come forward with the present Application seeking time from 31.12.2020. The applicants shall make the requisite payments to both Respondents - application disposed off.
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