IN THE MATTER OF:
Pranami Trading Pvt Ltd. ……..Appellant
Kieon Developers Corporate Debtor Respondent Pvt. Ltd. ……..Respondent
Application filed by the appellant u/ S. 7 before the AA was rejected on the round of limitation.
The Appellant claims that it had booked a flat with the Respondent on 16th May, 2012 and paid Rs.60 Lakhs and the allotment letter was issued to the Appellant. Subsequently, on 16.07.2012, an MOU was executed b/w the Appellant and Respondent and both the parties cancelled the booking on terms and conditions as laid down in the MOU.
The Respondent agreed to pay the Appellant the amount of Rs.60 Lakhs within 18 months from the date of receipt of the booking amount, i.e. on or before 15th November, 2013 + Rs.8,10,000/- every six months to the Appellant till entire booking amount was duly paid. Other conditions were also incorporated. The Respondent paid Rs.3,24,000/- each on 16.11.2012 and 15.05.2013 and issued some cheques for refund of the amount but the same bounced. The Appellant claimed that no interest had been paid on the booking amount. The Respondent created third party rights which led to the Appellant filing suit in City Civil Court at Mumbai.
Later, respondent claimed that it was a pure loan transaction and accepted that the Respondent had received the money.
The date of default was 21.07.2017 i.e., date of the written statement in the Suit. The AA observed that W/S filed in the Suit did not amount to acknowledgement of the debt and could not reset the limitation. Thus, the Appn was rejected.
The Appellant had paid Rs.60 Lakhs and allotment letter was issued on 16th May, 2012. The MoU shows that the parties mutually agreed to cancel the booking on the “T&Cs arrived at between the two parties” as mentioned in the documents.
The Appellant filed Suit seeking Decree of the flat, the Respondent accepted that the respondent had received consideration amount from the Plaintiff as a loan.
In the transaction, the term clearly shows liability of Rs.8,10,000/- getting created every 6 months for the Respondent to pay the Appellant till the entire booking amount has not been repaid. The entire booking amount has not been paid and the amount due and outstanding was clearly >Rs.1 Lakh and thus, the Application under Section 7 could not have been rejected as time barred.
Thus, the Appeal is allowed and the matter is remitted to the AA.
Click here to read full order: 11th June 2019 In the matter of Pranami Trading Pvt ltd. Vs. Kieon Developers Pvt Ltd.