VOLTAS LIMITED Vs. AMETHYST HOSPITALITY PRIVATE LIMITED

JUDGEMENT

(1.) HEARD the learned counsel for the petitioner and the learned counsel for the respondent.

(2.) THE petitioner and the respondent had entered into an agreement whereby the petitioner was to execute certain works titled as "HVAC work for Park Inn Suits (sic.) at Bangalore" in terms of the petitioner's final offer dated 5/6/2008. The letter confirmed that the contracted works were for a total value of Rs. 2,42,22,678/ -. The final offer made by the petitioner was, however, for a total sum of Rs. 3,36,00,000/ -, which included high -side works and the low -side works. The respondent chose to award only the low -side works to the petitioner and payment was to be made against running bills. Running bills were said to have been raised from time to time, by the petitioner in respect of the works completed and an agency namely, M/s. Fusion India Project Management Private Limited, were certifying the works to the extent of the invoice raised, being properly and duly completed.

(3.) THE learned counsel for the petitioner was heard at length. The endeavour of the learned counsel for the petitioner is to point out that though a defence has been raised in the present proceedings as if to indicate that there is a serious dispute as regards the entitlement of the petitioner to payment, it is only the sum of Rs. 50,00,000/ - which was attributed as the value of the works to complete in respect of 7th floor which was kept in abeyance. Insofar as the works that were completed, there was no dispute. It was in that background that in the minutes of meeting dated 1/9/2012, it is categorically indicated that the respondent would make payments commencing from October 2012 to December 2012 in instalment of Rs. 25,00,000/ - to 30,00,000/ - each and hence there is no dispute about the admitted debt and in view of the respondent having failed to reply to the statutory notice, the respondent is deemed to be unable to pay its debts and the further circumstance that the cheques issued by the respondent have been dishonored, is ample indication of the respondent's inability to service its debts and hence the petition ought to be allowed.