TaxTMI 
TaxTMI 
2022 (10) TMI 585
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....onal Creditor is a company engaged in the business of construction works and the Corporate Debtor is a company engaged in the business of engineering, construction, manufacturing and financial services conglomerate, with global operations. 3. Submissions of Operational Creditor: i. The Operational Creditor states that, the Corporate Debtor issued a Letter of Intent, dated 05.05.2017, to depute persons, tools and tackle and commenced work of construction of "Elevated Service Reservoir" (in brevity "ESR") at work site at Pune, ESR and GSR Project at Pune. ii. Further, a Work Order- no. EF516WOD7000042, dated 07.07.2017 for a period from 29.05.2017 to 31.08.2018, for a total value of Rs. 2,00,25,000 by the Corporate Debtor to the Operational Creditor for the following: a. One Number of Elevated Service Reservoir of 4.5 ML (4500000 Litres) Capacity with 18 Mtr Staging at Hadapsar Bus Depot @ Rs. 1.95/Ltr, amounting to Rs. 87,75,000/-; b. One Number of Elevated Service Reservoir of 2.5 ML (2500000 Litres) Capacity with 19Mtr Staging at Ghorpadi Siciliaa ESR-1 @ Rs.2.25/Ltr, amounting to Rs. 56,25,000/-; and c. One Number of Elevated Servic....
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.... that, the invoices were issued at lower rates as those specified in the Work Order, for which the Operational Creditor raised an amount of Rs. 8,85,795/- towards the balances due against the R/A invoices on the account of difference in rates of the invoices issued up to 30.06.2018. ix. Therefore, the Operational creditor served a Legal Notice through its Counsel Anil Kumar Dugar on Corporate Debtor vide the Demand Notice dated 29.03.2019, for a cumulative amount of Rs. 19,54,556.60/-. 4. Submission of the Corporate Debtor: The Corporate Debtor filed a detail reply, dated 10.04.2019, in response to the Demand notice, dated 29.03.2019, opposing the admission of the above Company Petition, more particularly on the ground of Pre-existing Dispute between the parties. The contention of the Corporate Debtor is as follows i. The Corporate Debtor had engaged with the Operational Creditor as a subcontractor under Pune ESR GSR Project for Construction of Elevated Service Reservoir, a Work Order dated 07.07.2017 for a period from 29.05.2017 to 31.08.2018 (together referred as "Subcontract". Pursuant to the enactment of the Central Goods and Services tax Act, 2017 on 12....
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.... basic rates. Accordingly, a Revised WO No. EF516WOOD7000042 dated 09.10.2018 incorporating the same had been forwarded to Operational Creditor vide e-mail dated 12.10.2017. In furtherance to the Revised WO, the Operational Creditor had raised 5 RA bills which in actions show the acceptance of the revised WO. There, it can be concluded that, the amount claimed in the Demand Notice by the Operational Creditor are denied as they are already paid by the Corporate Debtor. vii. The Corporate Debtor further states that, due to the defective work during the execution, performed by the Operational Debtor, the Corporate Debtor has incurred additional cost. Apart from the subsequent delays in other works, at these 3 sites, for 4-6 months, on account of the irresponsible act of abandoning the site without any valid reasons works by the Operational Creditor, the Corporate Debtor has incurred the additional cost of Rs. 44,89,170/- viii. As per the terms and conditions, the material handed over to the Operational Creditor and the operational Creditor had the obligation to take care of the materials handed over for the execution of project but the materials were misappropriated ....
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..../2018 but uptil now only 43 column first lift is completed which is showing slow progress of work. And also there is no progress in staircase work after casting of stair column on 30/04/2018. This kind of delay is badly affecting the future schedule of the work. Take the correct action towards progress of work and arrange sufficient manpower at site so as to recover this delay in work. Also we are continuously following up to complete all pending finishing work of structure at site but your approach towards this work is poor. Please clear all pending finishing work as earliest. ii. Email dated 09.10.2018 addressed by Corporate Debtor to Operational Creditor with regards to the slow work progress Subject: Slow work progress Dear Akshay ji, We are again reminding you for slow work progress at Hadapsar ESR Ghorpadi, ESR 2. Ghorpadi For Hadapsar ESR last casting of 3rd Lift wall was done on 22/09/2018 since that in last 17 days no major work found on site. Currently only 3 workers are working on site. Please take necessary action from your site asap to recover the work schedule at site, Also for Ghorpadi ESR 3 backfilling was comple....
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....alance to do, regarding the BBS it is ready and already informed to your incharge at site. 16 nos of labour are not enough to take up the target and also not idel at the moment Ghorpadi Site: Rate finalisation is pending. Excavation is yet to be completed. 3. Ghorpadi Site :- Excavation is completed 95% and you can immediately deploy your labour for preparation of the PCC. iv. The Corporate Debtor by e-mail dated 02.11.2018 addressed a letter to Terminate to Operational Creditor Dear Mr. Akshay, This is very disheartening to say that you have not been able to boost the work progress since a long period of time for all allotted structures. Even after various commitments, you are not able to mobilize sufficient labours on your sites leading to the progress of work on a poor scale. No work progress has been observed at Hadapsar site after 3rd lift of wall casting on 22/09/2018 that should have reached to the level of top slab in present condition and complete de-shuttering is also not done till date for the same ESR even after several instructions. In the similar manner, for Ghorpadi ESR 02, last casting was done on 14-09-18. Since then no ....
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....o "25- Termination of Contract" in the terms and conditions attached along with your Work Order. Also, you are instructed to vacate the campus within 24 hours after the receipt of this mail and we shall be deploying our team to execute the balance work after the stipulated time frame. You may please discuss the same in our Pune cluster office at below mentioned address if you still have any further apprehensions. Needless to mention the Company (Larsen & Toubro ltd. Construction) does not stand responsible for nay loss or damages that have been or may be caused to your firm. 7. It is very clear from the above referred e-mails that there is a dispute even before the issuance of the Demand notice dated 29.03.2019. The Corporate Debtor had Terminated the Work Order between the parties, via letter dated 12.12.2018, which is also prior to the said Demand Notice. Thus, upon perusing the above e-mails, this Bench notes that both parties are in loggerheads much prior to issuing the Demand Notice. 8. In this context, it is appropriate to mention here that as per the law laid down by the Hon'ble Supreme Court in Mobilox Innovations Private Limited Versus Kirusa Software Private Limited....