Tribunal rules in favor of Respondent, dismissing application due to contract violations and termination.

The Tribunal dismissed the application filed by the Resolution Professional of M/s. Unique Roof Private Limited, concluding that the Corporate Debtor grossly violated contract terms. The Respondent was not liable to pay the outstanding amount of Rs. 39,08,034/- as claimed by the Corporate Debtor. The termination of the contract by the Respondent was deemed legal due to persistent delays and non-compliance by the Corporate Debtor. The Tribunal accepted the valuation of goods supplied by the Corporate Debtor and ruled in favor of the Respondent, dismissing the application without costs.

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Issues Involved:
1. Whether the Respondent is liable to pay a sum of Rs. 39,08,034/- to the Corporate Debtor.
2. Compliance with the terms of the contract by the Corporate Debtor.
3. Allegations of fraudulent activity and inflated bills by the Corporate Debtor.
4. Legality of the termination of the contract by the Respondent.
5. Valuation of goods supplied by the Corporate Debtor.

Issue-wise Detailed Analysis:

1. Liability to Pay Rs. 39,08,034/-:
The Applicant, the Resolution Professional of M/s. Unique Roof Private Limited, sought a directive for the Respondent to pay the balance outstanding amount of Rs. 39,08,034/- for supplies made. The Corporate Debtor had raised invoices totaling Rs. 98,08,034/-, out of which Rs. 59,00,000/- was paid by the Respondent. The balance amount of Rs. 39,08,034/- was claimed as due and reflected in the Corporate Debtor's books.

2. Compliance with Contract Terms:
The Respondent argued that the Corporate Debtor failed to complete the work within the stipulated time. The original purchase order required completion by 28.03.2019, but the work was delayed. The Respondent sent multiple reminders and emails, including a significant one on 26.03.2019, where the Corporate Debtor sought an extension to 25.05.2019. Despite this, the work was not completed, leading to further extensions and eventual cancellation of the contract by the Respondent on 24.08.2019.

3. Allegations of Fraudulent Activity:
The Respondent accused the Corporate Debtor of inflating bills and creating sham documents, including a "Work Completion Report" dated 14.08.2019. The Respondent claimed that the Corporate Debtor diverted funds and failed to comply with the contract terms, causing financial and reputational damage.

4. Legality of Contract Termination:
The Respondent unilaterally terminated the contract due to persistent delays and non-compliance by the Corporate Debtor. The Corporate Debtor contested this, stating that the termination was illegal and that the Respondent had not cooperated in keeping the site ready for delivery. The Tribunal noted the Respondent's right to cancel the contract due to the Corporate Debtor's delays and non-compliance.

5. Valuation of Goods Supplied:
The Respondent's Chartered Engineer assessed the work done at Rs. 57,48,702/-, which was less than the Rs. 59,00,000/- already paid. The Tribunal acknowledged this valuation and noted that the proceedings were summary in nature, limiting the Tribunal's ability to take detailed evidence like a Civil Court.

Conclusion:
The Tribunal concluded that there was a gross violation of contract terms by the Corporate Debtor. The Applicant, being the Resolution Professional, could not provide a comprehensive explanation of the transactions and communications between the parties. Based on the evidence, including email exchanges, the Tribunal determined that the Corporate Debtor was not entitled to any further payment from the Respondent. Consequently, the application was dismissed without any cost.

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