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TMI Blog2022 (1) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... n it is notified that retention money from the period 3 months but paid to 6 months, may not be deducted from the raised bills. In view of the said notification the application is allowed and Applicant would be entitled for the refund of retention money. The Respondent No. 2 shall release the retention money of ₹ 2,62,74,514/- forthwith. Petition disposed off. - I.A. No. 139 of 2021 in TCP (IB) No. 33/7/AMR/2019 in CP (IB) No. 47/7/HDB/2018 - - - Dated:- 5-1-2022 - Telaprolu Rajani, J. (Member (J)) For the Appellant : V.K. Sajith, Advocate For the Respondents : Abhishek Dash, Advocate ORDER Telaprolu Rajani, J. (Member (J)) 1. This is an application is filed under Section 60(5) of Insolvency and Bankruptcy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Respondent No. 1 has to present the Invoices in their name and submit the same to the Government Department which awarded the work. After verification of the Bill and the quantum of the work done, the department processes for the release of payment. However the Bill will not be paid in full. An amount equating to 6% of the Bill will be retained, as retention money. d) The defect liability period varies depending upon the works done as well as the agreed period while executing the Contract deed. The retention money is to ensure that the work is completed defect free as well as to compel the Contractors to rectify the defect if any. Certain percentage of each payable invoices are withheld by the Government agencies. After the expiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .07.2020 to the Respondent No. 2 requesting to release the retention money. 3. The Counsel for the Respondents filed Counter stating that the Applicant at this stage is not entitled to receive the retention money amounting to INR 2,62,74,514/- as sought by the Applicant in the present Application and the same has been withheld by the Corporate Debtor under the contractual arrangements executed between the Applicant and the Corporate Debtor. The allegations raised by the Applicant that the Corporate Debtor has illegally and arbitrarily withheld the retention money are motivated with the sole objective of extracting money from the Corporate Debtor and the applicant is not entitled for retention money at this stage. 4. Clause 2.4 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Clause 48.2 of conditions of contract forming part of the Agreement. But the Applicant did not accept the Liquidator's request and approached this Tribunal. 6. Heard both sides. It is clear from the arguments made by the counsel for the Applicant that the contract that assigned to the Corporate Debtor was executed and certificate was issued to that effect with regard to defect liability period extended up to 30.06.2022. The counsel for the Applicant draws the attention of the Tribunal to the notification dated 03.06.2020 wherein it is. notified that retention money from the period 3 months but paid to 6 months, may not be deducted from the raised bills. In view of the said notification the application is allowed and Applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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