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TMI Blog2017 (10) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of a Zinc Sulphate Mono Hydrant Rant of 50 MTPD capacity. In addition to the setting up of the plant, the agreement provide for project management, site supervision and other engineering expertise including training of staff for operating the plant. The total price for commissioning was agreed at Rs. 10,01,00,000/-, cif Shahjahanpur, Service Tax etc. was to be paid in addition. The entire project: was entrusted to the Petitioner from the stage of conceptualising the design till the desired output of the finished product could be made marketable. The time frame for completion was also an important factor, as the production had to meet the market demand. However, all civil construction was to be done by the Corporate Debtor themselves. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under Section 8 of the Code, various disputes had been raised with respect to the inadequacies in the implementation of the plan. While the Operational Creditor seeks payment of Rs. 81 lakhs on account of the Service Tax, Vat and other taxes paid, the Corporate Debtor submits that, in fact, due to the non-adherence to the terms and conditions of the contract, they are entitled to claim liquidated damages and have to recover much more from the Operational Creditor. 5. A perusal of the Counter Affidavit in reply has reflected that certain defects and non-implementation in performance had been raised from time to time. Amongst other correspondence, reliance is placed on the replies to the legal notices and a compilation of mails, annexed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor to execute the same but has still not been conducted till date. It is also the grievance of the Corporate Debtor that in terms of the said agreement, the Bank Guarantee which had been provided for due performance, on having lapsed after the first year, was never renewed. Liability is also sought to be disputed on account of the delay in implementation of the project by about 114 weeks. Since they were under pressure from the Bankers to meet the obligation of supplying to KRIBHCO for the kharif season 2016, they had to seek outside help. This delay caused extensive losses. Vide their email dated 31st May, 2016, the Corporate Debtor had notified their intention of recovering damages from the Operational Creditor on all the aforesaid count ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r dispute primarily on account of dissatisfaction about proper implementation of the plant and the produce apart from non-execution of the tests under the GTR. It is however beyond the scope and jurisdiction of this Tribunal to appreciate the evidentiary value of the dispute. What is required to be assessed is that the dispute in the present proceedings is not patently false or a moonshine defence, raised only to resist initiation of any Insolvency Resolution Process against them. 11. In the case at hand, various objections were taken prior to initiation of the procedure under the Code, some of which may have been redressed and some still not to the satisfaction of the Corporate Debtor. A company that sets up a plant involving a huge expen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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