Case Details

Case Name: Balageria Central Cooperative Bank Limited vs. S.R. Green Housing Projects (India) Limited

Court/Authority: National Company Law Tribunal Chandigarh Bench, Court-II

Case Number: CP No. 4/Chd/Pb/2018

Date of Order: 22.05.2026

Period of Dispute: Investments made in 2014-2015, maturity dates in 2015-2016, default beginning 2016

Legal Provision: Section 71(10) of the Companies Act, 2013

Parties Involved

Petitioner: Balageria Central Cooperative Bank Limited (Central Cooperative Bank registered under West Bengal Cooperative Societies Act, 1940)

  • Represented by: Mr. Ankush Chowdhary, Advocate
  • Authorized Representative: Shantanu Chaki
  • Director: Mr. Anup Kumar Das (filed petition)

Respondent: S.R. Green Housing Projects (India) Limited (engaged in building constructions and civil engineering works)

  • Registered address: 1st Floor, 7 Dashmesh Nagar, Patiala, Punjab 147001
  • Representation: None (set ex-parte vide Order dated 26.11.2021)
  • Director: Ankur Roy

Issues / Allegations / Violations

The petition was filed due to respondent's failure to redeem non-convertible debentures upon maturity. Specific allegations include:

  • Petitioner invested ₹1,00,00,000 on 25.11.2014 (Application No A 14136) in NCDs with maturity date 25.11.2015 and redemption value of ₹1,10,25,000
  • Petitioner invested additional ₹2,00,00,000 on unspecified date (Application No A 29579) in NCDs with maturity date 14.01.2016 and redemption value of ₹2,20,50,000
  • Total investment: ₹3,00,00,000 with agreed redemption value: ₹3,30,75,000
  • Interest rate: 10.25% per annum simple interest on unpaid maturity value
  • Respondent erroneously paid ₹1,50,00,000 prematurely for first debenture (excess payment acknowledged via email 24.11.2015)
  • Respondent failed to redeem second debenture amounting to ₹2,00,00,000 despite maturity on 14.01.2016
  • Respondent admitted financial constraints and liability through multiple communications (emails 14.01.2016, 25.01.2016; letter 07.04.2016)
  • Legal notice dated 06.05.2016 demanded ₹1,83,48,792.72 as on 31.03.2016 with interest @ 10.25% p.a.
  • Amount due as per petition: ₹2.4 crores plus further interest at 10.25% p.a. till payment

Findings & Observations

The Tribunal made the following key findings:

  • Respondent issued allotment letters for debentures bearing distinctive numbers 175360 to 275160 and 1297689 to 1497689, creating binding contractual obligation
  • Respondent's email dated 24.11.2015 acknowledged excess payment of ₹1,50,00,000 (instead of due ₹1,10,25,000) and promised adjustment against subsequent debenture
  • Respondent's communications (including from Director Ankur Roy) unequivocally admitted liability and cited financial constraints as reason for non-payment
  • Respondent proposed securing outstanding dues through mortgage of immovable properties
  • Respondent never disputed the liability at any stage
  • Essential conditions of Section 71(10) were satisfied: debentures matured and company failed to redeem with interest
  • Respondent's conduct showed continuous acknowledgment of debt coupled with failure to repay

Penalties / Settlements / Directions

The Tribunal issued the following directions:

  • Respondent company directed to redeem debentures pertaining to second allotment amounting to ₹2,00,00,000 (principal)
  • Respondent must pay interest in terms of agreed conditions (10.25% per annum simple interest)
  • Due adjustment to be given for excess amount already paid by respondent (₹1,50,00,000 paid instead of ₹1,10,25,000 for first debenture)
  • No additional penalties imposed beyond repayment of principal and contractual interest

Final Ruling & Enforcement

  • Company Petition No. 4 of 2018 allowed and disposed of
  • Tribunal exercised powers under Section 71(10) of Companies Act, 2013
  • Order is immediately enforceable as respondent was already set ex-parte
  • No additional future conditions or ongoing obligations specified beyond the repayment directive

Corrective Actions & Future Obligations

The order does not specify additional corrective actions, governance reforms, or compliance measures beyond the immediate repayment directive. The respondent's earlier proposal to secure dues through mortgage was not incorporated into the final order.