M/S. MYTRI PROJECTS GUDIVADA, KRISHNA DISTRICT A.P. Vs. M/S. IL&FS ENGINEERING AND CONSTRUCTION COMPANY LIMITED

JUDGEMENT

(1.) This Company Petition is filed invoking the provisions of Sections 433(e), 434 and 439 of the Companies Act, 1956 r/w Rule 95 of the Company (Court) Rules, 1959, seeking winding up of the respondent company, alleging that the respondent company has neglected to pay the debts due to the petitioner company without there being a reasonable cause.

(2.) At the outset, we may record the undisputed facts. The respondent company is a public listed company engaged in the business of development and construction of infrastructure projects including roads, express ways / highways, buildings, industrial structures, irrigation canals, dams et cetera. The respondent company is promoted by the Central Bank of India, UTI and HDFC and later inducted LIC, SBI, Abu Dhabi Investment Authority and Orix Corporation of Japan. In the course of its business, the respondent company was awarded with work of Four Laning of Kiratpur Ner-Chowk Sec. of NH-21 (From Km 21.55 to Km 154.000) in the State of Punjab and Himachal Pradesh by IL & FS Transportation Networks Limited. From out of the work allotted to the respondent company, petitioner company was initially awarded the work execution of construction and of Earth Work upto GSB from Km 145.00 to Km 152.00 and later the same was enhanced to from 145 Kms to 148.450 (Tunnel-4, Portal-1) and from Km-16.325 (Tunnel-2, Portal-2) to Km-17.235. Initially the value of the work order dated 25.11.2013 is of Rs.19,05,72,140.00. On receipt of the Letter of Intent (LOI) dated 22.08.2013 followed with work order dated 25.11.2013 and the modified work order dated 10.01.2014, the petitioner commenced the work and submitted Running Account Bills (in short R.A. Bills) for a total sum of Rs.17,57,28,732.00. As against the R.A. Bills raised by the petitioner between 29.04.2014 and 31.01.2015 (total 27 bills), a sum of Rs.6,31,44,732.00 was claimed to have been paid to the petitioner. (Petitioner claimed payment of Rs.5,74,17,225.00). As can be seen from the statement furnished by the respondent, the payments were made on ad hoc basis for various sums varying from Rs.44,646.00 to Rs. 74,77,832.00. Petitioner had intimated its inability to complete the work citing non-payment of the R.A. Bills by the respondent and thereby not completed the contract awarded. A notice under Sec. 433 read with 434 of the Companies Act, 1956 (in short the Act) was issued to the respondent company demanding payment of Rs.10,96,25,072.00 with interest at the rate of 24% per annum, the same was responded by the respondent company denying the liability and disputing the claim of the petitioner company. Therefore, in the undisputed fact situation as above, the company petition is filed invoking the provisions under Sec. 433 (e) of the Act, alleging the respondent company had failed and neglected to pay the amounts due to the petitioner without there being a reasonable cause.

(3.) The fact that an amount of Rs.10,96,25,072.00 has not been paid, is not disputed.