GONDI & ASSOCIATES

ADVOCATES & SOLICITORS

06th July, 2021

WITHOUT PREJUDICE

DEMAND NOTICE

To,

1. CONTINENTAL ENGINES PRIVATE LIMITED

Having Registered Office at:-

A-21 9 Prithviraj road, New Delhi

DL 110003 IN

Also at:-

A-88, RIICO Industrial Area, Bhiwadi

District Alwar BHIWADI 301019 RJ IN

Email- [email protected]

Our Client :-

Sun Developers & Consultants

Having Registered Office at: -

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

Plot No. 28, Sector-8, Faridabad, Haryana 121006

Email- [email protected]

Subject: Legal Notice for Remittance of Payment of Rs.2,25,74,145.71

(Rupees Two Crore Twenty Five Lakh Seventy Four Thousand One
Hundred And Forty Five Rupees And Seventy One Paise only)
payable by Continental Engines Pvt. Ltd. to Sun Developers.

Our Client: SUN DEVELOPERS AND CONSULTANTS

Dear Sir / Ma’am,

Under the instructions of, and on behalf of our Client, SUN DEVELOPERS AND

CONSULTANTS, having it’s Registered Office at Plot No. 28, Sector-8, Faridabad,

Haryana 121006, I, the undersigned, issue the following legal notice to you

(hereinafter referred as “Addressees” ) in unequivocal terms for failure to make

payments towards Invoices raised in lieu of Services availed.

1. That as you addressee is well aware that our Client is a sole Proprietorship Firm

having its registered office at the abovementioned address. Our client has

specialization in the field of Industrial Civil Jobs, Fabrication & Erection Works,

RCC Works, Shed Fabrication, Industrial Epoxy Flooring, Industrial Buildings,

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

PU Flooring, Building Maintenance, Design & Installation of Fire Fighting

System, Water Treatment Plants, Demolition of old Buildings, Installation of

False Roofing & Aluminium Partition, Mezzanine Flooring, Floor repairing etc.

2. That you the addressee i.e. CONTINENTAL ENGINES PRIVATE LIMITED is

the company registered with the registrar of Companies, Delhi and is involved

in designing, manufacturing and distribution of aluminum alloy cylinder heads,

blocks, manifolds, gears, housing, brackets, coverings and other critical engine

components. You the addressees claims to be a pioneer in paramount quality

of automotive components. It is stated apart from serving the domestic market

your company manufacture and exports components to a most of the OEM’s

around the world.

3. In the year 2018 you addressee started looking for reliable agency /contractor

for execution civil construction work in your CTC Plant and Continental Foundry

and finally after being impressed by our client’s stellar reputation and expertise

in the field you addressee approached our client to avail their services of civil

works and invited for submission of commercial offer for Civil work along with

cost structure and after detailed discussion and on your assurance of timely

remittance our client had agreed to render their services to your company.

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

4. It is pertinent to mention here that solely because of the expertise, goodwill and

on the basis of fair price quotation of Our Client, you awarded aforesaid civil

work to Our Client for consideration wherein on request of you addressee our

client executed civil work beyond the scope of as Service Order on your

assurance to generate an additional Purchase Order in due course.

5. That in accordance with the payment schedule and in order to build trust of Our

Client, you addressee initially released part payment which was not even within

the specified timeline as agreed upon, however, keeping in view better future

business relationship with you, Our Client continued to have faith in you thereby

accordingly raised timely invoices toward aforesaid services along with the

applicable taxes.

6. It’s been long since our client is waiting and consistently reminding you

addressees for remittance of the outstanding dues which is too hefty a sum to

let go of. It is evident that despite of the constant reminders you have failed to

pay the dues and always turned your deaf year without giving any heed to the

repeated request of our client in their voluminous emails.

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

7. It is pertinent to mention that as per agreed terms the amount claimed shall be

cleared within 30 days from the date of issuance of the respective Invoices

dismay to note that your actions/inactions clearly reflect violation of the said

condition as already agreed. Apropos to mention here that our client had

accepted your proposal and rendered its services at much discounted rates

only on your assurance of timely remittance of the payments.

8. It is pertinent to mention here that solely upon your assurances of timely

payment of consideration, Our Client agreed to execute the work assigned qua

the aforesaid order and moreover our client had done additional works and

modifications (modifications if any) as and when required by you addresses to

your satisfaction without any discomfort and demur and hope you are well

aware that both in law, equity and at any point of time you cannot held our client

liable to bear any loss caused by your acts and omissions in execution of civil

works, you miserably failed to abide by your assurances and illegally retained

hard earned money of Our Client and even failed to raise any valid dispute

regarding the services rendered by our client.

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

9. As such, it has become imperative for our Client to cause the issuance of the

present demand notice seeking payment failing which; our Client shall be

constrained to take appropriate steps as per law.

10. That it is apposite to mention here that you addressee had made huge claims

in front of our client of having significant business profits, in order, to deceive

our client into believing your false financial creditability, solvency and honest

intention that our client believing all the representations and payment

assurances made by you the addresses decided to enter into business with

you.

11. Please note that our Client has bonafidely sought to claim outstanding pending

amounts from you without the imposition of penalty of the administrative

inconvenience caused by you addressee to our client purely out of goodwill.

12. That our client was surprised with the complete silence being exercised you

addressee even our client requested with folded hands to clear their own

rightful dues, thereby resulting in complete unjustified and uncalled for delay in

the disbursement of the payable invoices.

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

13. We would like to draw your attention that our client is also engaged in small

business and they are dismally economically affected from the ongoing

situation of pandemic and their financial condition has also become precarious

as they are bound to make and even made some payments to the vendors from

their own pocket keeping aside had earned any penny till date and this

concerned being highlighted to you addressee over an email.

14. That it is also pertinent to mention here that our client has placed all the relevant

documents and correspondences before us, after perusal, of the same, it is

evident that, our client did not receive any genuine complaint qua the services

rendered at any point of time and you the addresses have maintained

conspicuous silence throughout the period in order to harass ,cheat and brow

beat our client.

15. That our client has suffered serve and grave business loss due to your

aforesaid fraudulent and evasive conduct and therefore reserves its right to

claim damages and loss of reputation caused to the business of our client due

to material breach trust and significantly delay in the recovery of the

consideration amount further caused delay in making payments to the vendors

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

associated with our client to accomplish the assigned work to the satisfaction

of you addressee.

16. That our client further reserves the right to claim damages on account of any

GST mismatch or incapacity to claim any input credit ,penalty due to your

aforesaid mala-fide conduct and much delay in clearing rightful dues of our

client. That our client shall further report to the concerned, Competent and

appropriate authorities in the event of concealment of the aforesaid entries in

your books of accounts. Apropos to mention here that our client has also raised

their concern and time and again requested to issue purchase order for the

rainwater harvesting (CTC), CTC civil work, Borewell work done by our client

as admitted and acknowledge by you addressee in Minutes of Meeting dated

03.07.2019 but of no avail, non-issuance of Purchase Order even after verbal

request from our client’s side clearly show ill intentions of your addressee is to

caused financial loss to our client and illegitimate gain to yourself.

17. That, the non–payment of the invoices amount for a long period in clearly

reflects your un–pragmatic approach in the matter, which is otherwise highly

unwarranted, from which it is also clear that since the inception your intentions

were malafide to cheat and defraud our client and to grab the legitimate amount

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

of our client. It is pertinent to note that you addressee did not provide for the

timely taking out of the building material (either rental or our asset) costing us

the rental of those materials. On the top of it, other contractors were permitted

to use those material for other building works. Also, in the middle of taking out

of material with your approval, our client was asked to stop and continue with

the work after 9th June, 2019 for a reason beyond my client’s understanding.

18. That after running from pillar to post Our Client has finally realized that you the

Addressee has not only caused breach of trust entrusted on you but also

dishonestly retained hard earned money of Our Client with no intension to clear

the same. That after assimilation of aforesaid facts, Our Client has forced to

believe that it was never an intention of you the Addressees to make payment

of legitimate amount of Our Client as in spite of the liability of payment aforesaid

dues which you Addressee have been miserably failed to make payment of the

said amount due to Our Client.

19. That you the addresses are reminded that our client can and will take recourse

to all appropriate legal remedies including but not limited to filing complaint

under MSME Act, but also u/s 420/406/120B Indian Penal Code, 1860 for

Cheating, Criminal Breach of Trust, and Criminal Conspiracy, by filing a police

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

complaint so that, a fair and proper investigation to be conducted after lodging

First Information Report (FIR).

20. In view of the above, and in light of your failure to pay the aforementioned

amounts to our Client, you are hereby called upon to pay this amount of INR ₹

2,25,74,145.71 /- (Rupees Two Crore Twenty Five Lakh Seventy Four

Thousand One Hundred And Forty Five Rupees And Seventy One Paise

only) along with interest thereon at the rate of 24% per annum (to be calculated

from the respective dates when the constituents of this amount became due

and payable) within 7 days commencing from the receipt of this notice failing

which, our Client will be constrained to take appropriate steps against you, as

per law, without any further notice to you.

21. Please note that, interalia, we are well within our rights to inform your

institutional creditors and/or make appropriate publications in highly circulated

newspapers depicting your financial inability to clear the rightful dues of our

client.

22. Kindly treat this as a peremptory Demand Notice, failure of compliance with the

terms of which will augment initiation of legal proceedings, both civil and

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]
 GONDI & ASSOCIATES
ADVOCATES & SOLICITORS

criminal as are warranted by Law or Equity, the consequences of which are

solely at your risk, costs and peril.

I hope that above reasonable requisition will be complied by you the Addressee

and that there will be no cause in future to participate in the present matter our

client is ready to cooperate with your company in every possible manner and

demand of our client is only limited to the rightful dues as claimed in the present

notice.

A copy of this notice has been retained in our Office and the Office of our Client

for future reference and record.

Sincerely Yours,

Mohit Gondi, Advocate

For Gondi & Associates.

Office: 1190, Sector ,7-D , Faridabad, Haryana-121006

M: 9811779487 E: [email protected]