Falcon Property Management Services vs. United Breweries (Holdings) Limited

Facts

The applicants, Falcon Property Management Services and Prestige Estates Projects Limited, filed Company Application No. 240 of 2026 seeking directions for the Respondent, United Breweries (Holdings) Limited (in liquidation), represented by the Official Liquidator, to pay their share of costs for the renovation of the "UB City" project. The applicants sought payment of 55% of the estimated renovation cost, which was Rs. 3,03,18,542/-, along with applicable GST. This application followed a previous order in CA No. 90/2025, dated 20.02.2026, where the Court had directed the Official Liquidator to pay Rs. 2,51,24,139/- upon completion and certification of renovation works. The current application was necessitated by increased estimates from contractors. The Official Liquidator filed a detailed statement of objections.

Held

The Court allowed the application. It noted that by an order dated 20.02.2026, it had disposed of CA No. 90/2025 and directed the Official Liquidator to pay renovation costs amounting to Rs. 2,51,24,139/- upon completion and certification. Taking into account the grounds presented in the current application (CA No. 240/2026), the Court deemed it appropriate to direct the office of the Official Liquidator to contribute 55% of the escalated amount, which was Rs. 3,03,18,542/-. The Court stated that the parties could work out the details of the payment. The ratio decidendi is that a prior court order directing payment of renovation costs, even with subsequent escalated estimates, binds the Official Liquidator to contribute their proportionate share of the revised costs, provided the application is supported by the grounds presented.

Key Issues

1. Whether the Respondent, through the Official Liquidator, is liable to pay its proportionate share (55%) of the escalated renovation costs for the "UB City" project, amounting to Rs. 3,03,18,542/-, along with applicable GST, in light of the previous order in CA No. 90/2025? Petitioner/Applicant's Contention: The applicants argued that a co-ordinate bench of the High Court had previously directed the Official Liquidator to make payment for renovation costs in CA No. 90/2025. They submitted that subsequent to that order, contractors submitted increased estimates, leading to the current total renovation cost of Rs. 5,51,24,622/-. They contended that the Respondent's 55% share of this escalated cost amounts to Rs. 3,03,18,542/- and requested the Official Liquidator to contribute this amount. They relied on the operative portion of the order in CA No. 90/2025. Revenue/Respondent's Contention: The counsel for the Official Liquidator stated that a detailed statement of objections had been filed and requested appropriate orders based on it.