SL. No.1

NATIONAL COMPANY LAW TRIBUNAL

COURT HALL NO: II

Hearing Through: VC and Physical (Hybrid) Mode

CORAM: SHRI. RAJEEV BHARDWAJ, HON’BLE MEMBER (J)

CORAM: SHRI. SANJAY PURI, - HON’BLE MEMBER (T)

ATTENDANCE-CUM-ORDER SHEET OF THE HEARING OF NATIONAL COMPANY LAW TRIBUNAL,

HYDERABAD BENCH, HELD ON 28.08.2024 AT 10:30 AM

TRANSFER PETITION NO.

IA (IBC)/1967/2023 in Company Petition COMPANY PETITION/APPLICATION NO.

IB/320/7/2022

NAME OF THE COMPANY Manjeera Constructions Ltd NAME OF THE PETITIONER(S) Catalyst Trusteeship Limited NAME OF THE RESPONDENT(S) Manjeera Constructions Ltd

UNDER SECTION 7 of IBC

ORDER IN THE NATIONAL COMPANY LAW TRIBUNAL In the matter of M/s. Catalyst Trusteeship Limited, Financial Creditor Vs.

IA (IBC)/1967/2023

Orders pronounced, recorded vide separate sheets. In the result, this application

is dismissed.

Sd/- Sd/-

MEMBER (T) MEMBER (J)

Vamsi

M/s. Manjeera Constructions Limited, Corporate Debtor Between Mr. S Sri Vishnu Chaitanya Guptha, MD of M/s. Guptha Infraventures & Constructions Pvt Ltd., Flat No.304, H.No.7-1-618/V Vindya Apartments, Ameerpet, Hyderabad – 500 016.

….Applicant Vs.

M/s. Manjeera Constructions Ltd., Represented by Mr Birendra Kumar Agrawal, Resolution Professional #711, Manjeera Trinity Corporate, Beside Manjeera Mall, JNTU-Hitech City Road, Kukatpally, Hyderabad – 500 072.

....Respondent Date of order : 28.08.2024 CORAM Sri Rajeev Bhardwaj, Hon’ble Member (Judicial)

Sri Sanjay Puri, Hon’ble Member (Technical)

Counsels present For the Petitioner : Mr. Gonugunta Murali, Advocate For the Respondent : Mr. VVSN Raju, Advocate Heard on : 30.07.2024 Per : Sanjay Puri, Member (Technical)

O R D E R

1. This application has been filed by the Managing Director of M/s.

Guptha Infraventures & Constructions Pvt Ltd (the Applicant), a sub-contractor for M/s. Manjeera Constructions Limited, the Corporate Debtor (CD). The Applicant claims that the CD owes them a sum of Rs 2,47,63,804, which, according to the Applicant, does not belong to the CD but was held by the CD merely as a trustee or custodian.

2. The Applicant contends that the amounts owed to them have arisen from three distinct contracts or arrangements entered into with the CD, where the CD collected the Applicant’s share from the respective parties for the work executed by the Applicant as a sub-

contractor.

3. The first Agreement¹, under which the Applicant has claimed Rs

2,15,89,629, was executed on 03.09.2018, along with a Supplementary Agreement² dated 28.09.2018. Under this contract, the Applicant, acting as a sub-contractor for the CD, was Page 12 to 16 of the Application Page 17 to 20 of the Application responsible for constructing the Cardiac Care Hospital in Jharsuguda, Odisha, on a turnkey basis.

4. The agreement was reportedly on a ‘back-to-back’ basis, meaning the Applicant was to be paid from the amounts received by the CD from ‘EE Jharsuguda’ after deducting a Tax Deduction at Source (TDS) of 2%. According to the Applicant, the CD’s financial interest was limited to the 2% TDS, with the remaining amount due to the Applicant. It is further emphasized that the CD did not invest any funds in the project. The Applicant claims that for the work completed on this project, EE Jharsuguda paid the pending amounts of Rs 79,32,356 on 13.10.2023 and Rs 1,36,57,273 on

31.10.2023 to the CD, which belongs to the Applicant.

5. The second Agreement³ cited by the Applicant is dated 18.09.2014.

Under this agreement, the Applicant, acting as a sub-contractor for the CD, was responsible for constructing residential apartments for the Central Government Employees Welfare Housing Organization (CGEWHO) in Bhubaneswar. As per the agreement, the Applicant was required to pay the CD Rs 100 per square foot of the actual super-built-up area, while the Applicant was entitled to receive the entire amount paid by CGEWHO to the CD after statutory deductions. The CD was to deduct 10% of the gross receipts from CGEWHO until the total deductions equaled Rs 100 per square foot as agreed. The A