Foodimentary (INDIA) LTD. vs. Indian Foodtech Limited

Facts

This matter concerns a petition filed by Foodimentary (India) Ltd. (the petitioner) against Indian Foodtech Limited (the respondent). The parties have arrived at a consent order based on Minutes of Meeting dated January 18, 2019, with certain agreed variations. The variations pertain to the effective date of the agreement, rent payment for January 2019 and no rent for February 2019. Crucially, the order addresses the Goods and Services Tax (GST) implications for civil work invoices raised by M/s Powercon Industries Limited for the petitioner, and for lease rent payable by the petitioner to the respondent. The petitioner is also required to vacate the premises by February 28, 2019, removing its machinery, raw material, and perishable goods.

Held

The Court held that the Minutes of Meeting dated January 18, 2019, would be treated as an agreed and operative agreement between the parties as of February 15, 2019, with specific modifications. Regarding the GST on civil work invoices by M/s Powercon Industries Limited, the Court directed that M/s Powercon Industries Limited would pay the GST and provide appropriate documents to the petitioner. For the rental charges payable by the petitioner to the respondent up to January 2019, the respondent, upon receiving the lease rent, would pay the appropriate GST and furnish relevant documents to the petitioner. The Court also reiterated that the petitioner would vacate the premises by February 28, 2019, removing all its belongings. The petition was disposed of in terms of this consent order, with no specific issues left undecided as the matter was resolved by agreement.

Key Issues

The Court had to decide on the implementation of the Minutes of Meeting dated January 18, 2019, with specific variations agreed upon by both parties. The key questions revolved around: 1. How the GST liability for civil work invoices raised by M/s Powercon Industries Limited for the petitioner would be handled, and what documentation would be provided to the petitioner. 2. How the GST liability for rental charges payable by the petitioner to the respondent up to January 2019 would be managed, and what documentation would be provided to the petitioner upon receipt of lease rent payments. The petitioner, represented by its counsel, agreed to the terms of the consent order. The respondent, also represented by counsel, concurred with the proposed order. The arguments focused on the specific terms of the agreement and the agreed-upon variations, particularly concerning the GST obligations and the timeline for vacating the premises.