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TMI Blog2020 (12) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... porate Insolvency Resolution Process in respect of M/s. Shore Dwellings Private Limited (formerly known as M/s. Mantri Dwellings Pvt. Ltd.) (hereinafter referred to as 'Respondent / Corporate Debtor') on the ground that it has committed default for an amount of Rs. 6,98,47,408/- (Rupees Six Crore Ninety Eight Lakhs Forty Seven Thousand Four Hundred and Eight only) as on 30.06.2020 excluding interest at the rate of 18% per annum, etc. 2. Brief facts of the case, as mentioned in the Company Petition, which are relevant to the issue in question, are as follows: (1) The Petitioner is a Company incorporated under the Companies Act, 1913 with CIN: U45200MH1943PTC003812 with its registered office situated at 70 Nagindas Master Road, Fort, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Creditor), the Engineer is required to issue the Final Payment Certificate to the Employer (the Corporate Debtor) within 56 days and payment towards the same is to be made by the Corporate Debtor within 56 days thereafter. (6) Having satisfactorily completed its works under the Construction Contract, the Operational Creditor, in accordance with Clause 14.11 issued an application for the Final Payment Certificate on 09.05.2019 vide letter No. SPCPL/MANTRI/RO-CONTRACTS-015 for a cumulative gross value of work done of Rs. 104,74,33,943 and net payable amount calculated at Rs. 12,45,89,866. (7) The Corporate Debtor failed to make payment under the terms of the Construction Contract. In view of the default in payment by the CD and wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 6,98,47,408 and further requesting a revision of the dates for paying each instalment, against the earlier agreed dates. (11) Despite being under no obligation to accommodate the CD's request, the Operational Creditor permitted the concessions sought for by the CD and vide its email dated 03.01.2020 once again issued the revised Settlement Agreement (bearing the signature of Authorised Rep. of the Operational Creditor), revising the payment schedule as follows: (i) Rs. 2,00,00,000 by 15.02.2020 (ii) Rs. 2,00,00,000 by 30.04.2020 and (iii) Rs. 2,98,47,408 by 30.06.2020. (12) The revised draft Settlement Agreement signed by the Operational Creditor has never been returned by the CD with their counter-signature despite several remi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was inherently uncertain and significantly lower than the admitted liability was unacceptable to the Operational Creditor and was therefore rejected. (15) In light of the CD's failure in making payment of the outstanding amounts, the Operational Creditor issued a Demand Notice dated 05.08.2020 to the CD demanding payment in respect of unpaid operational debt for a sum of Rs. 6,98,47,408. In response thereto the CD has vide letter dated 14.08.2020 sought 15 days' time to respond to the said Demand Notice. Despite the lapse of the 15 day period, the Operational Creditor has not received a response from the Corporate Debtor. Therefore, as per Sec.8(2)(a) of the Code, the Corporate Debtor has not raised any dispute with regard to, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... project Mantri Pinnacle in December 2019 the cost of the project was Rs. 103,97,89,507, and the net payable amount was Rs. 12,45,89,866. Out of this, as per the Petition, the amount stated to be in default is only Rs. 6,98,47,408, which the Corporate Debtor failed to make. Attempt was made to resolve the issue on 01.10.2019 and as per the agreement the same was to be paid in 3 instalments of Rs. 2,00,00,000 by 31.12.2019, Rs. 2,00,00,000 by 31.03.2020 and Rs. 2,98,47,408 by 30.06.2020. On the CD's request these dates were revised to 15.02.2020, 30.04.2020 and 30.06.2020. On 18.07.2020, the CD communicated its refusal to sign the Settlement Agreement in view of the Covid-19 pandemic and the resultant slow-down in the real estate market. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This has adversely impacted businesses. The real estate sector has badly affected, resulting in incomplete projects and home buyers' suffering in the process. In the instant case, the demand as per the revised terms of payment was to be paid in instalments on 15.02.2020, 30.04.2020 and 30.06.2020. Of these the second two instalments fall in the period of the Lockdown when business was at its lowest ebb. Major decisions had to be taken be taken by the Government to revive business, to inject economic stimulus, enable restructuring of debts, introducing modifications and suspension of various provisions of the Code, extending limitations of time etc. In this bleak scenario, it cannot be known whether it would be fruitful to push the Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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