- (1.) The Applicant claims to be an 'Operational Creditor' and has prayed for initiating Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity the 'Code') against 'Operational Creditor', M/s. Sport and Leisure Apparel Limited, New Delhi.
(2.) Faets leading to the filing of instant application may first be noticed. On the representation nade by the Corporate Debtor, the applicant was persuaded to accept an offer to take on lease a commercial space/shop in the upcoming Mall known as "Grand Venezia Mall" in Greater Noida and has consented for taking on lease shop Nos. 99 and 100 on the lower ground floor. To that effect, an MOU dated 24.05.2008 was entered into and a sum of Rs. 7,22,292/- was deposited as security. According to the terms of the MOU, the 'Operational Debtor' was to hand over the shops to the 'Operational Creditor' on or before January 2010. Therefore, there was further stipulation that in case of delay in handing over possession, the 'Operational Creditor' was entitled to 15% interest per annum on the security amount. There was also further stipulation providing exit to the 'Operational Creditor' for refund of security alongwith interest if the delay was beyond the period of six months. However, the 'Operational Debtor' failed to deliver possession of the shops as per the stipulations of the MOU. Thereafter, even the security deposits have not been released.
(3.) The 'Operational Creditor' has placed on record the statement of accounts showing that the amount of Rs.7,22,292/- was paid to 'Operational Debtor' through cheque dated 30.06.2008. After the 'Operational Creditor' failed to release the amount, a legal notice through its Counsel, was sent on 01.10.2016 demanding the principal outstanding amount along with 15% interest per annum from the date of pavment of security deposit. If the needful was not done, then the 'Operational Creditor' was to initiate appropriate proceedings. it is in these circumstances that a request has been made for initiating insolvency process against the Respondent Company.;