Pranav B Prem

The National Company Law Tribunal, Kochi Bench, has directed Guruchandrika Builders & Property Private Limited, Mr. Rajeev Vidyadharan, and Mrs. Padmam Rajeev, proprietor of Nanma Eatery (formerly Jatayu Merchandise), to deposit ₹38,32,744 into the common pool escrow account of the Jatayupara Tourism Project. The direction came in a petition filed by the NCLT-appointed Chartered Accountant supervising the financial affairs of the project after the respondents failed to deposit the monthly revenue share as agreed.

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The dispute arose from an agreement executed on 1 January 2024, under which respondents Rajeev Vidyadharan and Mrs. Padmam Rajeev agreed to remit security amounts and 20% of gross revenue to Guruchandrika Builders, the project operator. According to the petitioner, despite continuous operations at Nanma Eatery, the revenue share and security payments due under the agreement were not deposited, prompting intervention by the Tribunal.

The Jatayu Earth’s Centre, situated at Jatayupara in Kollam, Kerala, is a prominent eco-tourism project featuring a massive sculpture of the mythological bird Jatayu. The project is part of a joint initiative involving the Kerala Tourism Department and film director Rajiv Anchal. Earlier, the NCLT had appointed an Administrator and a Chartered Accountant to oversee the project’s finances, with all revenue required to be deposited into a designated common pool account. The present petition seeks enforcement of this mechanism after the respondents failed to remit the dues.

During the proceedings, the respondents argued that the amounts due should be set off against alleged loans advanced by Mrs. Padmam Rajeev to Guruchandrika Builders and against claimed salary arrears and other operational hardships. The Tribunal rejected these contentions, observing that financial claims arising from unrelated capacities could not be adjusted against the contractual revenue obligations due from the license holder of the eatery. The Bench stated that such non-deposit amounted to non-performance and could be treated as embezzlement.

The Tribunal emphasized that the respondents’ capacity as licensees operating the eatery was distinct from any other personal or financial dealings they might have had with the builder. It held that none of the alleged dues could be adjusted against the agreed revenue share or security amounts owed to the project’s common pool account. The Tribunal also noted that the agreement made timely remittance an essential condition, and continued violation could not be excused on grounds of unrelated claims.

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Concluding that the respondents had failed to comply with their obligations despite clear contractual terms and oversight by the Administrator, the Tribunal directed Guruchandrika Builders & Property Private Limited to deposit ₹38,32,744 within seven days. It further ordered that interest at 18% be applied for any delay. The Tribunal also empowered the Administrator and the Chartered Accountant to cancel the license of respondent No. 4 in case of non-compliance. The petition was accordingly allowed, with the Tribunal reiterating that proper management and transparent financial discipline are essential for the smooth functioning of the Jatayupara eco-tourism project.

Appearance

For Applicant: Mr. Shawn Jeff Christopher, NCLT Appointed Chartered Accountant

For Respondent: Mr. Vinod V Luka, Advocate (For Respondents R1, R19, R20, R21, R23), Mr. N.P. Vijayakumar, Advocate (For Respondents R2, R4, R5, R6), Mr. Sankar Panicker, Advocate (For Respondent R3), Mr. Bijoy P Pulipra, Advocate (For Respondents R12 to R18 & R25), Mr. Bimal K Nath, Sr. Govt. Pleader (For Respondents R28 and 29), Respondents R7, R9, R10 and R11 were set as ex-parte.

Cause Title: M/s. Jatayupara Tourism Private Limited Vs Guruchandrika Builders & Property Private Limited & Anr

Case No: MA(C/ACT)/1/KOB/2025 IN IA(C/ACT)/03/KOB/2023 IN CP(C/ACT)/21/KOB/2020

Coram: Judicial Member Vinay Goel, Technical Member Madhu Sinha