Court Or­ders Ari­cent Tech to Va­cate Of­fice for Rent De­fault

The Economic Times - - Disruption: Startups & Tech - So­bia.Khan@ times­group.com

Ben­galuru: A court in Ben­galuru has or­dered tele­com soft­ware so­lu­tions firm Ari­cent Tech­nol­ogy to va­cate the of­fice premises it has been oc­cu­py­ing in RMZ Ecozen for al­legedly de­fault­ing on rental pay­ments.

Act­ing on an evic­tion suit filed by Mil­len­nia Real­tors, an RMZ Corp group com­pany, the city civil court asked Ari­cent to hand over the prop­erty lo­cated at Martha­halli on Sar­japur Road by July 13. “The to­tal amount to be paid, as per the court or­der, by Ari­cent is around .₹ 32 crore,” said a per­son fa­mil­iar with the mat­ter. Ari­cent said it plans to con­test the or­der. “Ari­cent re­spect­fully dis­agrees with the Hon’ble Court’s judg­ment and in­tends to ap­peal such judg­ment. The com­pany does not an­tic­i­pate any ad­verse ef­fect on its fi­nan­cial po­si­tion,” the com­pany said in an email re­sponse to ET. The com­pany, backed by New York-based pri­vate equity firm Kohlberg Kravis Roberts & Co, al­legedly de­faulted on rental pay­ments since 2003 and the mat­ter has been in court for 11 years.

“It oc­cu­pies 130,000 square feet of of­fice space in RMZ Ecozen and around 1,000 em­ploy­ees op­er­ate out of this of­fice,” said a per­son fa­mil­iar with the mat­ter. The lease deed with Ari­cent started in Novem­ber 2003.

“It is hereby fur­ther or­dered that the de­fen­dant shall pay .₹ 18 per sq. ft. per month as dam­ages in re­spect of use and oc­cu­pa­tion of the sched­ule prop­erty” from Fe­bru­ary1, 2005, un­til the date of evic­tion, with in­ter­est at 6% per an­num, the court said in its rul­ing.

The court also said that if Ari­cent fails to va­cate the prop­erty within three months of its or­der, RMZ Corp will have the right to take pos­ses­sion through the process of the court at the cost of the de­fen­dant.

Ari­cent, pre­vi­ously known as Flex­tron­ics Soft­ware Sys­tems, was spun off from Flex­tron­ics in 2006 when KKR ac­quired a ma­jor­ity stake in the com­pany for $900 mil­lion.

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