The bankruptcy court in Mumbai has rejected an application filed against Indamer Mjets Airport Service Pvt Ltd to admit the company under the Corporate Insolvency Resolution Process (CIRP). New Delhi-based Dezire Group had approached the tribunal after the company defaulted on its alleged dues of over Rs 1.57 crore.
“In the present case, the corporate debtor (Indamer Mjets Airport Service) has been able to show the existence of a dispute relating to the delay in execution of the contract and the quality of the work done by the operational creditor,” said the division bench of judicial member Lakshmi Gurung and a technical member Charanjeet Singh Gulati in its order, while dismissing the application.
“Such dispute can only be decided through the process of arbitration in accordance with clause 30 of the Construction Contract,” observed the tribunal further on November 20.
In this case, Indamer Mjets Airports Services had entered into an agreement with Dezire Group in March 2021, where the New Delhi-based firm was to start the work for the extension of the lounge near Terminal 3 at Delhi International Airport.
As per the contract the work was supposed to be completed within 3 months from the date of the contract. However, due to the delay in releasing the payments by the Indamer Mjets Airport to Dezire Group, the corporate debtor extended the time for completion of the work.
Advocate Palash S. Singhai, appearing for the operational creditor argued that Indamer Mjets Airports Services, without any just and cogent reason discontinued the contract in March 2022 and directed it to submit its final bill for verification. It further argued that the final bill was submitted on April 11, 2022, which the company failed to clear the outstanding payments.
Countering this, Indamer Mjets Airport Service argued that when there was already a pre-existing dispute between the parties before the operational creditor approached the tribunal along with sending the demand notice and the petition was filed solely with an intent of ‘recovery’ which is not the aim and intent of the Insolvency & Bankruptcy Code.
Munaf Virjee, founder of law firm AMR Law along with advocate Akash Agarwal appeared for the Indamer Mjets Airport and also argued that no amount is due and payable to the operational creditor.
The Operational Creditor has received an undisputed amount due to it totalling Rs 3. 09 crore and the balance amount claimed by the Dezire Group is disputed on account of delay, in completing the contract and the quality of the work.
