Dear South City Apartment Owners/ Residents,

 

When the Hon'ble High Court of Karnataka passed the oral order on May 31, 2013 while disposing SUGRUHA's MFA 3209/2013 appointing SCMC as the receiver, SUGRUHA's understanding of the order was as follows:

 

1. SCMC has to pay Rs 50 lakhs to L&T towards maintenance expenses for June 2013, subject to final settlement of June expenses as per mutually accepted audited statement of expenses.

 

2. L&T will transfer interest received from time to time on the maintenance corpus to SCMC 

 

The written order of the Hon'ble High Court was released only on June 11, 2013 Unfortunately, it did not contain any explicit directions to L&T on maintenance corpus and interest thereof.

 

SCMC has taken the necessary legal step of seeking a suitable direction from the Hon'ble High Court of Karnataka to L&T to transfer the corpus interest to SCMC to enable it to partly meet the maintenance expenses.

 

SCMC, as the Official Receiver, was forced to approach the Hon'ble High Court of Karnataka, only after L&T refused to transfer such interest received as requested by SCMC

 

SCMC wrote to L&T asking them to 

 

a) Furnish a statement of details of fixed deposits in which the maintenance corpus was being held, interest rates, dates of  maturity and dates of interest payments.

 

b) Transfer the interest payments as above to SCMC's Bank Account as and when received.

 

To our utter disappointment, L&T's reply claimed that L&T was not required by the order of the Hon'ble High Court to transfer the interest received on the maintenance corpus to SCMC. It also denied that they ever promised in open court that they would transfer the interest to SCMC, which is totally contrary to SUGRUHA's understanding of that day's Court proceedings.

 

We sought legal advice. Accordingly, SCMC has filed a petition before the Hon'ble High Court seeking a suitable direction to L&T to transfer the interest received to SCMC. SCMC has been in touch with our lawyers and following their advice in this matter. 

 

 

R. Rajagopalan

Member, SCMC