Under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy Code, 2016 (Application to Adjudicating Authority) Rules, 2016.

ORDER

PER: ATUL CHATURVEDI, MEMBER (TECHNICAL)

1. This Application has been filed by Ahluwalia Contracts (India) Limited, the Applicant/Operational Creditor (“OC”) before this Adjudicating Authority, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC” or “Code”) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, (“Adjudicating Authority Rules”), for initiating the Corporate Insolvency Resolution Process (“CIRP”), declaring moratorium and for appointment of Interim Resolution Professional (“IRP”), against Prateek Realtors India Private Limited, the Respondent/Corporate Debtor (“CD”) on the ground that the Corporate Debtor has defaulted in payment of Rs.4,52,33,831/- (Rupees Four Crores Fifty Two Lakh Thirty Three Thousand Eight Hundred Thirty One Only).

2. The Corporate Debtor herein Prateek Realtors India Private Limited having CIN U70101DL2009PTC197028, was incorporated under the provisions of the Companies Act 1956 and having its registered office at Plot No 101-102, Himalaya Palace 65, Vijay Block, Laxmi Nagar G Block, Shakarpur, East Delhi India-110092. Since the registered office of the Corporate Debtor is situated in New Delhi, this Tribunal having jurisdiction over the NCT of Delhi is the Adjudicating Authority under sub-section (1) of section 60 of the Code in relation to the prayer for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor.

3. SUBMISSIONS OF THE APPLICANT/ OPERATIONAL CREDITOR:

i. The total amount of debt is Rs. 10,52,33,828/- (Rupees Ten Crores Fifty Two Lakh Thirty Three Thousand Eight Hundred and Twenty Eight Only). This amount, the Corporate Debtor agreed as an operational debt due and payable for provision of service by the Operational Creditor to the Corporate Debtor pursuant to a construction contract dated 07.09.2014.

ii. On 29.08.2014, the Corporate Debtor issued a letter of intent to the Operational Creditor for Civil and Structural Work including finishes and Electrical Conduiting of its Multistoried Group Housing Project by name Prateek "Grand City" at Siddharth Vihar, Ghaziabad (UP) for a total cost of approximately Rs. 178,00,00,000/- (Rupees One Hundred Seventy Eight Crores Only) excluding service tax.

iii. On 07.09.2014 details of terms and conditions of the contract was executed between the Corporate Debtor and Operational Creditor on 07.09.2014. As per Article 4 of the Articles of Agreement, the contract amount was agreed to be Rs. 178,61,63,318/- (Rupees One Seventy Eight Crore Sixty One Lacs Sixty Three Thousand Three Hundred Eighteen Only) excluding service tax. The completion time agreed as per article 5 was 30 months from the date of signing of the Contract Agreement. As per Clause 60.2 of the General Conditions of Contract, the Corporate Debtor undertook to pay 70% of the Running Account Bills (RA Bills) within 10 working days after issuance of certificate from PMC/Site-in-charge after receipt of RA Bill of the Operational Creditor and balance within 30 working days.

iv. The Corporate Debtor defaulted in timely clearing of RA Bills and other payments regularly resulting in delay in completion of work. It may be relevant to mention here that up to July 2020, there were unpaid dues to the tune of Rs. 21 Crores against submitted certified RA Bills. The Operational Creditor requested the Corporate Debtor vide letter dated 29-07-2020 to release a minimum payment of Rs. 10 Crores immediately and further balance due in 2-3 monthly instalments.

v. Throughout the execution period, the Corporate Debtor consistently defaulted in making payment of due amount despite several requests and finally on 24-03-2025 the Corporate Debtor agreed to pay back the operational debt of Rs. 10,52,33,828/( Rupees Ten Crores Fifty Two Lakh Thir