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2019 (2) TMI 968 - HC - Companies LawRecovery of outstanding dues - company under liquidation - performance guarantees - encashment of Bank Guarantees - Held that:- There is an outstanding amount of about ₹ 16.88 Crores payable to the various vendors of the Company in liquidation, towards the ONGC project. The Court found that if the vendors were paid 75% of their outstanding payment upfront, they can take up the balance work and complete the same in accordance with the project specifications. It was found that the ONGC was to pay an amount in the region of ₹ 30 Crores, to the Company in liquidation towards the project. The Court further observed that as indicated by Mathews, the project can be completed within a period of six months at an estimated cost of about ₹ 3,35,94,440/- plus the project management cost of ₹ 91,50,000/-. Though the learned counsel appearing on behalf of the Respondent No.2 – ONGC was in broad agreement with the proposal, but had expressed apprehension that since amounts have to be paid to the various vendors with a view to enable them to take up and complete the balance work, this will be in the nature of advance payment and therefore requested that ONGC may be permitted to charge interest in accordance with its prevailing policy and adjust the same towards the final amount payable to the vendors or the company in liquidation. While considering the aforesaid objection, the learned Company Judge observed that, the payment is directed to be made by ONGC as part of its past dues and not as an advance payment. The learned company Judge, therefore, specifically observed that there is no question of ONGC charging any interest towards amount paid under the orders of this Court. There is no merit in the Appeal challenging order dated 26th April, 2018. The Appeal is, therefore, dismissed.
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