TaxTMI 
TaxTMI 
2019 (9) TMI 414
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....oned in the Company Petition, which are relevant to the issue in question, are as follows: (1) M/s. Pleasant Valley Development Private Limited ('Petitioner/ Operational Creditor') was incorporated under the Company Act, 1956, bearing CIN No. U45201KA1993PTC014685 is residing at 102, Embassy Palace, Cunningham Road, Bangalore - 560 052. (2) M/s. Wall Street Lounge Bar Private Limited ('Respondent/ Corporate Debtor') was incorporated on 01.02.2017, bearing CIN No:U74999KA2017PTC099545 and its paid up Capital is Rs. 10,00,000 (Rupees Ten Lakhs only). (3) It is stated that the Petitioner herein is the owner of a commercial building situated at No.30, Third Floor, Church Street, Civil Station, Bangalore (the "Scheduled Premises").At the request of M/s. Deccan International by seeking lease of premises to run its business, the Petitioner by agreeing the same, executed a Lease Deed dated 10.12.2015, and it was also registered as Document No. 4270/2016-17 in the Office of the Sub-Registrar, Shivaji Nagar. Subsequently, M/s. Deccan International amended the Lease Deed dated 10.12.2015, by which lease of the Scheduled Premises was assigned to the Corporate Debtor. The Amended Lease De....
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....rom the Bruhat Bengaluru, Mahanagara Palike and thus building itself was constructed illegally and there is no Occupancy Certificate obtained from the Bruhat Bengaluru Mahanagara Palike. Subsequently, on informing about the said things, the Petitioner assured them that they shall get all the requisite permission and Occupancy Certificate from the BBMP so as to enable them to carry the commercial business in the leased premises. Further, it is informed that the leased premises shall commence from the date on which the Trade License and Occupancy Certificate are obtained from the Statutory Authority in favour of them to carry on the commercial business. iii. Subsequently, a demand notice dated 25.10.2018 in Form No.3 was issued by the Corporate Debtor by demanding to pay an amount of Rs. 98,55,000/- in terms of Lease Deed dated 10.12.2015 vide Document No.4270/2016-2017 and also amendment to Lease deed dated 05.04.2017 vide Document No.81/2017-18, within 10 days from the receipt of the copy of the order. (7) In pursuant to the above demand notice issued by the Corporate Debtor has got the issue by the Operational Creditor reply dated 09.11.2018, by inter alia contending are as fo....
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.... police and filed a complaint, which was registered as FIR No. 176/2018 with the Cubbon Park Police Station. Subsequently, despite having made no such demand earlier, the instant notice got issued by concealing all the material information, including the aforesaid criminal proceedings and the dispute between your client and our client in connection with the Leased Premises. vi. Since they themselves has already suffered substantial losses on account of the misrepresentations made by the Petitioner, they have the right to initiate appropriate proceedings for damages and breach of contract. vii. Therefore, they have called upon them to unconditionally withdraw the demand notice dated 25.10.2018, and further demanded them to forthwith furnish them , A copy of the sanction plan from BBMP'; Copy of the Occupancy Certificate issued by BBMP; a Certificate/approval from the fire department; License issued by the Department of Electrical Inspectorate in respect to operation of Lifts in the building; within a period of 15 days from receipt of this notice, failing which, they have warned to take action . 3. Heard Shri S. Guru Prasanna, learned Counsel for the Petitioner. We have carefull....
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.... for the entire term of nine years or 108 months. The Lessee cannot terminated the lease during the subsistence of the lock in period. The Lessee can be terminated by the Lessee by giving the Lessor, three months' notice period for termination of the Lease or paying two month's rent in lieu thereof. The lessee shall be entitled to 45 (forty five days) rent free occupation of the premises in order to enable the lessee to undertake improvements, interiors etc. The monthly rent agreed for the premise is Rs. 3,50,000/- to payable by the Lessee in advance on 10th Day of every month. 7. The Lessee in consideration of grant of Lease of Premises, agreed to deposit and maintain with the Lessor an Interest Free Refundable Security Deposit of Rs. 35,00,000/- (Rupees Thirty Five Lakhs Only), paid by the following manner: a. Rs. l0,00,000/- (Rupees Ten Lakhs Only) paid by the way of Cheque bearing No. 185983 dated 10.12.2015 drawn on Axis Bank Limited, Bengaluru, as token advance. b. Rs. 25,00,000/- (Rupees Twenty Five Lakhs Only) paid by way of Cheque Bearing No. 185984, drawn on Axis Bank Limited, Bengaluru. This cheque of Rs. 25 Lakhs shall be presented for encashment, only after the Le....
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....ease during the Term of Lease and renewals if any, without any payment, forthwith upon the happening of the following: a. Peaceful possession and enjoyment of the Premises is disturbed, interrupted or hampered in any manner whatsoever due to any non-compliance with local land laws or other statutory requirements/compliances or otherwise relating to the schedule premises not having been maintained during the term of the lease by the Lessor; or b. There is a defect in the Lessor's title to the Premises. c. Any or all representation of the Lessor is found to be untrue/ incorrect. (7) The Lessor shall be entitled to terminate the lease for non-payment of rent for a period of 3 consecutive months during the subsistence of the lease or any renewed term thereof except for reasons stated in clause 5(c). Upon termination of this Deed the Lessor shall refund to the Lessee the IFRSD amount of Rs. 35,00,000/- (Rupees Thirty Five Lakhs Only) (the 'IFRSD') refundable by the Lessor to the Lessee in accordance with the terms of this Deed, and simultaneously, the Lessee shall handover physical vacant possession of the Premises to the Lessor in good tenantable condition. 9. As stated supra,....
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....any agreement/contract, the concerned party should fulfil the obligations under those covenants. It is not known as to why the Petitioner has not terminated the Lease when the Respondent failed to pay rent for so many months as claimed. And there is no answer from the Petitioner about defective/false declarations made in the Lease Deed as detailed supra. Moreover, it is not the case of Petitioner that the Respondent is doing its business in the leased premises. Even though notice was issued as early as 2.08.2017, the Petitioner failed to take any action as threatened except issuing another Demand Notice dated 25.10.2018. The Respondent, admittedly raised substantial dispute, in terms of Lease Deed in question and the Petitioner, even prior to the issue statutory Demand notice in question. There are serious allegations made against the Petitioner saying that the Building in question was constructed illegally and it was not issued even occupancy certificate and criminal proceedings too was initiated against the Petitioner for cheating, mischief etc., and stated to be pending. 12. The Petitioner did not prove that it had complied with all the obligations cast upon it in the Lease Dee....