DEVESH SINGH Vs. MEGA SOFT INFRASTRUCTURE (P ) LTD

JUDGEMENT

(1.) Vide the present petition prayer has been made to trigger off Insolvency Resolution Process against the Respondents under the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as Code). As per averments, the petitioner claims to be a financial creditor, claiming a financial debt of Rs. 30,69,000/- from the Corporate Debtor. The basis of the claim emanates from an initial transaction between petitioner/financial creditor with one M/s. Maruti Realtors Pvt. Ltd. for purchase of 300 sq. yard plot in a residential project to be developed at Bagpat. The consideration paid by the financial creditor was Rs. 10,50,000/- and the terms of their agreement dated 25.08.2006, provided a scheme for buyback. Since M/s. Maruti Realtors failed to develop and deliver the proposed property within the stipulated period of 24 months, the petitioner agreed to co-opt for an IT commercial complex being developed by the Corporate Debtor in lieu of the consideration given to M/s. Maruti Realtors, having the same Director on its Board. Upon taking on the obligation of the Maruti Realtors, the Corporate Debtor agreed to develop and allocate 400 sq. ft. on the 3rd Floor of a commercial project proposed to be developed under the name and style of "The Grid". A fresh agreement was executed on 8.10.2008 reflecting the financial creditor's contribution as Rs. 11 lakhs. It was also agreed that the Corporate Debtor would pay assured returns of Rs. 21,437/- per month till 20th August, 2011, which thereafter would stand increased to Rs. 42,875/- (Pre-TDS). Increase of 15% every subsequent year till 2014 was also agreed upon. As per the said agreement dated 8.10.2008, the Corporate Debtor undertook to compensate/pay a penalty of Rs. 42 lakhs in the event of the project not being completed.

(2.) The Financial Creditor submits that as the Corporate Debtor failed to deliver, he invoked the claim under their agreement. The dispute for recovery of Rs. 42 lakhs as compensation/penalty, culminated in an agreement dated 26.06.2014 for a total settlement of Rs. 30,69,000/-. It is also submitted that pursuant to this agreement a charge was formally registered with the office of the RoC. It was also undertaken that w.e.f. 1.06.2014, interest @ 12.5% would be payable on the aforesaid amount which shall stand enhanced to 15% in case of any default.

(3.) It is also submitted that in terms of the agreement, the dispute with respect to the recovery of the outstanding liability was referred to the named arbitrator. It is the financial creditor's submission that the Corporate Debtor refused to submit to the jurisdiction of the arbitrator, categorically denying any agreement for arbitration. It is submitted that as no arbitration proceedings are pending, the petitioner as financial creditor is entitled to initiate the insolvency proceedings.