The case involves an application filed by the liquidator of EPC Construction (India) Ltd. seeking directions against Arkay Logistics Limited to pay INR 18,10,00,000 to the Corporate Debtor. EPC Construction was awarded a contract by GSPL India Gasnet Limited (GIGL) and required a Performance Bank Guarantee (PBG). Arkay Logistics arranged for the PBG from Axis Bank, with a lien on their fixed deposits. EPC Construction deposited amounts with Arkay Logistics, but after EPC Construction was admitted into insolvency, the full balance was not deposited. The PBG was released by GIGL and surrendered to Axis Bank. The liquidator argues that Arkay Logistics is obligated to return the deposited amounts, which form part of the liquidation estate.
On 18.01.2017, GSPL India Gasnet Limited (GIGL) awarded EPC Constructions (India) Ltd. a contract for a pipeline project requiring a Performance Bank Guarantee (PBG) of INR 21,17,00,000. Due to liquidity issues, EPC Construction requested Arkay Logistics Limited to arrange the PBG from Axis Bank, secured by a lien on Arkay's fixed deposits. EPC Construction deposited INR 6,00,00,000 on 01.03.2017 and INR 60,00,000 on 02.03.2017, with a promise to pay the balance. EPC Construction also took a short-term advance of INR 3,00,00,000 from Arkay Logistics. Subsequently, EPC Construction deposited INR 12,00,00,000, INR 50,00,000, and INR 2,00,00,000 on 05.01.2018, 09.01.2018, and 18.01.2018, respectively. The short-term advance was repaid, and a net amount of INR 18,10,00,000
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GSPL India Gasnet Limited (GIGL) awarded EPC…
EPC Construction…
The case involves an application filed by the liquidator of EPC Construction (India) Ltd. seeking directions against Arkay Logistics Limited to pay INR 18,10,00,000 to the Corporate Debtor. EPC Construction was awarded a contract by GSPL India Gasnet Limited (GIGL) and required a Performance Bank Guarantee (PBG). Arkay Logistics arranged for the PBG from Axis Bank, with a lien on their fixed deposits. EPC Construction deposited amounts with Arkay Logistics, but after EPC Construction was admitted into insolvency, the full balance was not deposited. The PBG was released by GIGL and surrendered to Axis Bank. The liquidator argues that Arkay Logistics is obligated to return the deposited amounts, which form part of the liquidation estate.
On 18.01.2017, GSPL India Gasnet Limited (GIGL) awarded EPC Constructions (India) Ltd. a contract for a pipeline project requiring a Performance Bank Guarantee (PBG) of INR 21,17,00,000. Due to liquidity issues, EPC Construction requested Arkay Logistics Limited to arrange the PBG from Axis Bank, secured by a lien on Arkay's fixed deposits. EPC Construction deposited INR 6,00,00,000 on 01.03.2017 and INR 60,00,000 on 02.03.2017, with a promise to pay the balance. EPC Construction also took a short-term advance of INR 3,00,00,000 from Arkay Logistics. Subsequently, EPC Construction deposited INR 12,00,00,000, INR 50,00,000, and INR 2,00,00,000 on 05.01.2018, 09.01.2018, and 18.01.2018, respectively. The short-term advance was repaid, and a net amount of INR 18,10,00,000
…GSPL India Gasnet Limited (GIGL) awarded EPC…
EPC Construction…