Sigmalon Equipment PVT. LTD. And Anr. vs. Maharashtra Industrial Development Corporation

Held

The Court noted that the respondent had filed a reply and tendered a letter dated 27/11/2019, which was treated as a demand notice for sub-letting charges including GST for the period 01/10/2017 to 30/09/2019. The petitioners, through their counsel, undertook to pay the stated amount of Rs. 2,19,85,957/- to the respondent on or before 31/12/2019. This undertaking was accepted by the Court. Furthermore, the respondent assured that future demand notices for sub-letting charges would be issued in a timely manner. In light of these statements and directions, the Court found that nothing further survived in the Civil Application. The Court directed that if a demand notice is issued henceforth, the petitioner shall pay the said amount within four weeks from the receipt of such notice. The ratio decidendi is that when parties arrive at a mutually agreeable settlement regarding payment of charges, including statutory levies like GST, and provide undertakings to adhere to the payment schedule and future procedural fairness, the Court will dispose of the matter based on these assurances.

Facts

The petitioners, Sigmalon Equipment Pvt. Ltd. & Anr., filed a Writ Petition No. 12157 of 2012. A Civil Application No. 277 of 2019 was filed in this writ petition. The respondent, Maharashtra Industrial Development Corporation (MIDC), filed a reply and tendered a letter dated 27/11/2019, which was marked as Exhibit 'X'. This letter contained a statement of sub-letting charges, including GST, for the period from 01/10/2017 to 30/09/2019. The respondent treated this letter as a demand notice. The petitioners undertook to pay the stated amount of Rs. 2,19,85,957/- to the respondent by 31/12/2019. The respondent assured that henceforth, demand notices for sub-letting charges would be issued in time.

Key Issues

1. Whether the letter dated 27/11/2019 issued by the Maharashtra Industrial Development Corporation (MIDC) constitutes a valid demand notice for sub-letting charges including GST, as per the contentions of the respondent? 2. Whether the petitioners are liable to pay the sum of Rs. 2,19,85,957/- as sub-letting charges including GST for the period 01/10/2017 to 30/09/2019, as per the undertaking given by the petitioners? Contentions of the Petitioner: The petitioner undertook to pay the amount of Rs. 2,19,85,957/- to the respondent on or before 31/12/2019. The petitioner agreed to pay the amount as per the statement accepted by the Court. Contentions of the Respondent: The respondent submitted that they had filed a reply as per an earlier order. They tendered a letter dated 27/11/2019 containing a statement of sub-letting charges including GST for the period 01/10/2017 till 30/09/2019, which was to be treated as a demand notice. The respondent also undertook to issue demand notices in respect of sub-letting charges for the suit property within time henceforth.