TaxTMI 
TaxTMI 
2018 (8) TMI 1886
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....o the tune of Rs. 1,15,00,000/- along with Rs. 31,08,588/- which is due and payable by Corporate Debtor, but it failed to pay the same. 4. The case of the Operational Creditor is that the Corporate Debtor viz., M/s. Green Peace Construction Private Limited, has entered into a Joint Development Agreement (JDA) dated 07.03.2010 with the members of Ajanta Flat Owners for construction of 54 Flats with such specifications agreed upon in the said JDA. The copy of JDA is placed at pages 1 to 63 of the typed set filed with the Application. 5. The Operational Creditor has referred to Para F -Warranty Clause' of the JDA, wherein it has been recorded that if any structural defect is found in the building, within a period of 18 months from the date of handingover possession of the flats to the individual "OWNERS" and the Association, the "PROMOTER" shall effect appropriate repair works without monetary liability on the part of the "OWNERS", and the "PROMOTER" shall also rectify, water leakages, plumbing defect or defects in either electrical wiring, or lifts, pointed out by the respective "OWNERS". It has been submitted by the Operational Creditor that there has been an obligation on the....
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....the parties, copy of which is placed at pages 76 and 77 of the typed set filed with the Application wherein it has clearly been admitted that the Corporate Debtor will provide fund of Rs. 80 lakhs and will complete the project by March, 2016 or assign some property for disposal to get funds for completion of project. In other words, the construction of the flats has been handedover but remaining work was not completed by the Corporate Debtor, due to which the above noted correspondence was exchanged between the Operational Creditor and the Corporate Debtor. 10. The Corporate Debtor has sent a communication dated 03.05.2016 to the Operational Creditor informing that the Corporate Debtor now, is in a position to complete all pending jobs as per JDA or to deposit the money required to complete the jobs in AFOA's account by 15th May, 2016, and sought support of the Association and Owners of Ajanta Flats. The copy of the letter dated 03.05.2016 is placed at page 78 of the typed set filed with the Application. Besides the above, the details of some of the works which were to be performed and cost estimation to complete the same by the Corporate Debtor are given by the Operational Cr....
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....erational Creditor and for the first time, some issues have been raised by the Corporate Debtor in its reply dated 29.01.2018. However, no prior notice of any dispute had been sent and this was an afterthought only in response to notice sent in Form-3 by the Operational Creditor. The copy of the Affidavit is placed at pages 9 to 10 of the typed set filed with the Application. Therefore, it is clear that, before receiving notice under Section 8 given by the Operational Creditor, the Corporate Debtor never raised any dispute. The Bank certificate issued by the State Bank of India is also placed at pages 87 to 110 of the typed set filed with the Application. 15. The Reply has been filed by the Corporate Debtor on 23.04.2018 wherein the details of JDA are given. The Corporate Debtor has alleged that title deeds of two flats have not been given to the Corporate Debtor. The Counsel for the Corporate Debtor has been referring to the said document for the purpose that the Corporate Debtor could not get loan from Bank and it was left to raise loan from the private financier at very high rate of interest. Under Para 2 of the reply, it has been stated that there is no 'Operational Debt&#....
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....has been made between the parties as has been referred to hereinabove. Therefore, the argument that has been advanced by the Corporate Debtor is not supported by any of the documents placed on record. It is worthwhile to record that during the course of arguments, the Counsel for the Corporate Debtor has submitted that if the Power of Attorney is provided the Corporate Debtor will complete the pending works, but the left over work has already been done by the Operational Creditor. Therefore, in the light of the facts and circumstances of the case, and the record placed on file, the debt is due and payable, which the Corporate Debtor has failed to pay to the Operational Creditor. 19. The Operational Creditor has fulfilled all the requirements of law for admission of the Application. This Bench is satisfied that the Corporate Debtor has committed default in making payment of the outstanding debt claimed by the Operational Creditor. Therefore, CP/344/(IB)/CB/2018 is admitted and the commencement of the Corporate Insolvency Resolution Process is ordered which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. 20. The moratorium is declared wh....