By Speed Post

To, 18.03.2017

SAGA AUTOMOTIVE INDIA PVT. LTD.

Having its registered office at:
B-24, Govind Marg,
Jaipur, Rajasthan – 302 013.

From,
Shell India Markets Pvt. Ltd.,
9th Floor, Building 9A,
DLF Cybercity, Phase-II,
Gurgaon – 122002

Sub:- Demand notice under Insolvency and

Bankruptcy (Application to Adjudicating
Authority) Rules, 2016 in respect of unpaid
operational debt due from Saga Automotive Pvt.
Ltd. under the Code.

Dear Madam/Sir,

1. This letter is a demand notice/invoice demanding

payment of an unpaid operational debt due from Saga

Automotive Pvt. Ltd.

2. Please find particulars of the unpaid operational debt

below:

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 PARTICULARS OF OPERATIONAL DEBT

1. TOTAL AMOUNT OF DEBT, Rs.12,98,778/-

DETAILS OF TRANSACTIONS ON
ACCOUNT OF WHICH DEBT
M/s Saga Automotive India
FELL DUE, AND THE DATE
FROM WHICH SUCH DEBT FELL Pvt. Ltd. (hereinafter
DUE referred to as ‘M/s Saga’)
expressed desire to
purchase lubricants from
M/s Shell India Markets Pvt.
Ltd. (hereinafter referred to
as ‘ M/s Shell’) for a period
of 4 years with minimum
guaranteed purchase of the
product. Pursuant thereto,
M/s Shell entered into a
Grant agreement with M/s
Saga on 12.03.2010,
whereby M/s Shell
advanced a sum of Rs.
21,50,000 to M/s Saga for
purchasing / constructing
the equipment/ facilities or
for any other agreed
purpose. The said grant, in
terms of the agreement, was
to be used by M/s Saga for
purchasing the goods and
was not to be used for M/s
Sagar personal use. The said
grant, as agreed, was to be
amortized and adjusted as if
repaid by M/s Saga to M/s
Shell when the purchase
commitment by payment
were fulfilled, in terms of the
agreement. As per clause 8
of the Grant agreement it
was also agreed that in case

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 M/s Saga failed to satisfy
the minimum committed
product purchase
requirement as set out in
Appendix 1 of the grant
agreement, M/s Saga were
liable to pay to M/s Shell
“Repayment
amount/compensation”

Over a period of 4 years

w.e.f. January 2010, M/s
Saga made the commitment
to lift 30,000 Ltrs. of the
product, as against which
M/s Saga could only lift
13,525/- ltrs leaving a
differential of 16,475/- ltrs.
As per the formula for the
differential multiplier, given
in appendix 1 of the Grant
agreement, M/s Saga were
liable to pay Rs.12,98,778/-
as debt to my client in
accordance with clause 8 of
the Grant agreement.

2. AMOUNT CLAIMED TO BE IN Over a period of 4 years

DEFAULT AND THE DATE ON w.e.f. January 2010, M/s
WHICH THE DEFAULT
Saga made the commitment
OCCURRED (ATTACH THE
WORKINGS FOR COMPUTATION to lift 30,000 Ltrs. of the
OF DEFAULT IN TABULAR product, as against which
FORM) M/s Saga could only lift
13,525/- ltrs leaving a
differential of 16,475/- ltrs.
As per the formula for the
differential multiplier, given
in appendix 1 of the Grant
agreement, M/s Saga were

Page 3 of 6
 liable to pay Rs.12,98,778/-
as debt to my client in
accordance with clause 8 of
the Grant agreement.

3. PARTICULARS OF SECURITY
HELD, IF ANY, THE DATE OF ITS
CREATION, ITS ESTIMATED
VALUE AS PER THE CREDITOR.
ATTACH A COPY OF A
CERTIFICATE OF _________
REGISTRATION OF CHARGE
ISSUED BY THE REGISTRAR OF
COMPANIES (IF THE
CORPORATE DEBTOR IS A
COMPANY)

4. DETAILS OF RETENTION OF
TITLE ARRANGEMENTS (IF ANY)
IN RESPECT OF GOODS TO ____________
WHICH THE OPERATIONAL
DEBT REFERS.

5. RECORD OF DEFAULT WITH

THE INFORMATION UTILITY (IF ____________
ANY)

6. PROVISION OF LAW, CONTRACT Grant Agreement dated

OR OTHER DOCUMENT UNDER 12.03.2010 between Shell
WHICH DEBT HAS BECOME
India Markets Pvt. Ltd. and
DUE
Ms.Saga Automotive (India)
Pvt. Ltd.

7. LIST OF DOCUMENTS i) Copy of Grant Agreement

ATTACHED TO THIS
APPLICATION IN ORDER TO
PROVE THE EXISTENCE OF
OPERATIONAL DEBT AND THE
AMOUNT IN DEFAULT
dated 12.03.2010 between
Shell India Markets Pvt. Ltd.
and Ms.Saga Automotive
(India) Pvt. Ltd.

ii) Copy of the e-mails dated

Page 4 of 6
 01.04.2016, 14.04.2016,
02.05.2016, 05.05.2016,
09.05.2016, exchanged
between the parties.

3. If you dispute the existence or amount of unpaid

operational debt (in default) please provide the

undersigned, within ten days of the receipt of this letter,

of the pendency of the suit or arbitration proceedings in

relation to such dispute filed before the receipt of this

letter/notice.

4. If you believe that the debt has been repaid before the

receipt of this letter, please demonstrate such repayment

by sending to us, within ten days of receipt of this letter,

the following:

(a) an attested copy of the record of electronic transfer

of the unpaid amount from the bank account of the

corporate debtor; or

(b) an attested copy of any record that Shell India

Markets Pvt. Ltd. has received the payment.

5. The undersigned request you to unconditionally repay

the unpaid operational debt (in default) in full within ten

Page 5 of 6
days from the receipt of this letter failing which we shall

initiate a corporate insolvency resolution process in

respect of Saga Automotive India Pvt. Ltd. in terms of the

order dated 22.02.2007 passed by Hon’ble National

Company Law Tribunal, New Delhi.

Yours Sincerely,

A.K.THAKUR
AKT LAW ASSOCIATES
ADVOCATES & SOLICITORS
G-3, LGF, Jangpura Extn.,
New Delhi. 110014
Phone No. 011-43541402

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