TMI Blog2020 (12) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... ecovery mechanism. This is clearly not the object of the Code. 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 Corporate Debtor into CIRP, or into liquidation if no Resolution Applicant comes forward. That would be against the objects of the Code. The Petitioner and the Respondent have been negotiating the terms of payment till very recently and the same are still on. The Corporate Debtor is willing to pay, only the terms are to be settled keeping in mind the present economic scenario. Hence, the Petition appears to be not only for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inclusive of VAT and Service Tax. (4) Accordingly, the Operational Creditor and the Corporate Debtor executed the contract for construction works in the Project dated 14.01.2011 ( Construction Contract ). The works for the same were duly carried out by the Operational Creditor and the Virtual Completion Certificate for the Project was issued by the Corporate Debtor on 09.01.2020 declaring the Project virtually completed as on 30.12.2019. (5) Clause 14.13 of the Construction Contract provides that after issuance of Final Statement by the Contractor (Operational 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 ₹ 104,74,33,943 and net payable amount calculated at ₹ 12,45,89,866. (7) The Corporate D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... several reminder emails addressed to CD during Dec.2019 to July, 2020. It is stated that the underlying liability has remained undisputed at all points. (13) With all three agreed upon dates for clearance of dues having lapsed without any payments by the CD, the Operational Creditor issued a notice bearing Ref. No. SPCPL/MANTRI/RO-CONTRACTS-017 on 06.07.2020 to the CD providing a period of 10 days for the CD to make the requisite payment, failing which the Operational Creditor would be forced to resort to remedies available contractually and under law to recover the dues. Further, it was brought to the CD s attention that the Operational Creditor would be entitled to claim interest @ 18% per annum for the defaulted amounts from the date of default. (14) It is stated that on 18.07.2020, the Operational Creditor received a letter from the CD bearing No.CA/Pinnacle/18/2020 expressing their refusal to sign the Settlement Agreement in view of the Covid-19 pandemic and the resultant slow-down in the real estate market. In turn, vide said letter, the Operational Creditor was offered an apartment in the same Project Pinnacle , in lieu of the payment dues. It is stated that even at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l settled that this Tribunal is not a dispute resolution forum. 6. Applying the above well settled principle in the instant case we take note that on completion of the project Mantri Pinnacle in December 2019 the cost of the project was ₹ 103,97,89,507, and the net payable amount was ₹ 12,45,89,866. Out of this, as per the Petition, the amount stated to be in default is only ₹ 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 ₹ 2,00,00,000 by 31.12.2019, ₹ 2,00,00,000 by 31.03.2020 and ₹ 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. Instead, it offered an apartment in lieu of the debt, which was not accepted by the Operational Creditor. Finally, Demand Notice dated 05.08.2020 was issued to the CD demanding ₹ 6,98,47,408. The CD vide letter dated 14.08.2020 sought 15 days time. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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