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JMC PROJECTS (INDIA) LIMITED
OUTSTANDING LITIGATIONS AND DEFAULTS
A. PROCEEDINGS INVOLVING JMC PROJECTS (INDIA) LIMITED (JMC)
I. Notices received by JMC

Noticer’s Name - Avtar Singh Construction Company (p) Ltd.
Date of Notice - 22.9.2008
Claim Amount (Rs. in lacs) - 50.24 alongwith interest @24%
Charges / Allegations - For recovery of outstanding amount

Avatar Singh was allotted work for Trichy, Madurai NH-45 B Road Project by JMC. In the said notice Avatar Singh has alleged that inspite of several reminders as well as assurance from various officers of JMC including Vice President and Managing Director, an amount of Rs.6,77,732/-, which was allegedly wrongly debited, was not released to him. He has further claimed that inspite of his request to return Bank Guarantee of Rs.20,00,000/-, refund security deposit amounting to Rs.43,46, 604/- JMC has not returned / refunded the same.

Avatar Singh has therefore claimed an amount of Rs.50,24,336/- alongwith interest at the rate of 24% p.a. and also asked JMC to return Bank Guarantee of Rs.20 lacs within 15 days.


OUTSTANDING LITIGATIONS filed against JMC.
(a) Civil Cases.

Suit No. 29/06
M/s. Avtar Singh, Contractors (ASC) V/s. JMC
The Court of Additional District Judge, Delhi
Amount claimed (Rs. in (lacs)- 3.30 along with pendentalite interest therein w.e.f. 01.04.06 and costs

ASC was awarded sub contract by JMC at M/s. Power Welfare Organization Site at Gurgaon, Haryana. It is alleged by ASC that in order to avoid delay in execution of the project, a 5% incentive was promised (quantified at Rs. 1,25,000/- approx) provided the work was completed in time. ASC alleges that the work was finished before time but JMC did not pay the promised incentive. Furthermore, of the amount alleged to be due after completion of the work, i.e. Rs.5,83,634/-, balance outstanding of Rs. 2,83,634 is allegedly due and payable and thus, a total amount of Rs. 4,08,634 was due and payable.

Thereafter, it is alleged that on 15.09.04, ASC was handed over a cheque for an amount of Rs. 1,72,000/- vide cheque no. 213301 of the even date, as full and final amount payable. ASC had deposited the cheque and the cheque was cleared. ASC has denied that the matter was settled for the said amount of 1,72,000/- citing certain exchange of notices between the parties, wherein JMC has alleged that the account has been settled for all times to come. The suit is for the recovery of the alleged balance outstanding amount of Rs.2,64,216/-, along with interest amount of Rs. 65,389/- (@ 18% from the period of 15.09.04 to 31.3.06) and thus the amount comes to Rs. 3,29,605/- and further interest pendentelite.

The Hon’ble Court vide order dated 1.12.2006 passed a decree directing JMC to pay Rs.1,10,000/-.


http://www.jmcprojects.com/pdf/draft-letter-offer-rights-issue.pdf