2019 (9) TMI 650 - HC - Insolvency and Bankruptcy

Voluntary winding up - default in repayment of due installments - Section 10 of Insolvency and Bankruptcy Code, 2016 - HELD THAT - The learned counsel for petitioner-Company has tendered a crossed cheque, payable in the name of Liquidator for a sum of ₹ 11, 41, 223/- to learned counsel for respondent No. 2, which has been accepted towards arrears of rent - It is agreed between the parties that after adjusting the amount of refundable security and amount tendered today in Court, nothing remains outstanding against petitioner-Company towards any claim for the period premises having remained in its occupation, except a sum of ₹ 1, 48, 525/- towards arrears of Electricity Charges for the period prior to 1.7.2019 as per electricity bill dated 9.8.2019. The learned counsel for petitioner-Company states that since details of Electricity charges for period till 30.6.2019 have been disclosed now, his client shall tender said amount by way of crossed cheque to the Liquidator within two weeks from today - Petitioner-Company shall be bound by its statement towards payment of outstanding electricity charges for the aforesaid period. Petition disposed of as infructuous.

Summary

Issues:
1) Lease agreement dispute between a private limited company and a landlord under liquidation.
2) Request for time to vacate premises and hand over possession to the liquidator.
3) Settlement of outstanding rent and arrears, including electricity charges.

Issue 1: Lease agreement dispute
The petitioner, a private limited company, entered into a lease agreement with M/s Hind Motors India Limited for a portion of an industrial plot. The property was mortgaged to Union Bank of India as collateral security. Due to the landlord's default and subsequent bankruptcy, a liquidator was appointed under the Insolvency and Bankruptcy Code, 2016. The petitioner sought time to vacate the premises as their showroom was under construction. The court granted extensions for vacating the premises, considering the impact on the petitioner's business operations.

Issue 2: Request for time to vacate premises
The petitioner approached the court seeking additional time to vacate the rented portion of the plot and hand over physical possession to the liquidator. Various orders were passed by the court, including granting extensions based on the progress of the petitioner's showroom construction. The petitioner eventually vacated the premises and handed over possession to the liquidator, leading to discussions on clearing arrears of rent and refundable security adjustment.

Issue 3: Settlement of outstanding rent and arrears
After vacating the premises, the petitioner cleared arrears of rent by tendering a crossed cheque to the liquidator. The parties agreed on the settlement amount, considering adjustments for the refundable security and outstanding electricity charges. The petitioner committed to paying the remaining electricity charges within a specified timeline. As a result, the court deemed the issue settled between the parties, disposing of the case and binding the petitioner to fulfill their commitment towards outstanding electricity charges.

By meticulously examining the lease agreement dispute, the request for time to vacate premises, and the settlement of outstanding rent and arrears, the court effectively resolved the legal complexities surrounding the case, ensuring fair treatment for all parties involved.