Itria Ventures LLC v. Singh Oil Corp.

Full title: ITRIA VENTURES LLC Plaintiff, v. SINGH OIL CORPORATION, J&P SINGH…

Court: Supreme Court, New York County

Date published: May 26, 2023

Facts

Plaintiff Itria Ventures LLC extended a term loan (the Loan) to defendants Singh Oil Corporation and J&P Singh Management L.P. (collectively, Borrowers). This Loan was guaranteed by defendants Deep Services Inc., Narrows Road, LLC, Petro Run Management LLC, Bingh Oil Turnersville South Inc., Bingh Oil Cherry Hill Inc. and Gurpreet Singh (collectively, Guarantors). When the Loan matured, the Borrowers defaulted, and the Guarantors failed to pay the Loan as required. Plaintiff now moves, pursuant to CPLR 3213, for summary judgment in lieu of complaint for a judgment against the Borrowers and the Guarantors. There is no opposition to the motion.

In support of its motion, plaintiff presents a loan and security agreement between the plaintiff and all defendants except Gurpreet Singh, and a term loan note between plaintiff and Borrowers, both dated November 19, 2018 (NYSCEF # 4 – the Loan Agreement; NYSCEF #5 – the Note). Gurpreet Singh signed both documents as the authorized signatory for Borrowers and Guarantors. As evidenced by the Loan Agreement and the Note, the Loan has a principal balance of $1,000,000 with a fixed interest rate of 11%, compounded annually. The Note obligates Borrowers to pay plaintiff (i) interest accrued on the Loan on a monthly basis, beginning on December 1, 2018, and (ii) the entire principal balance of the loan, in one lump sum, on November 1, 2020, if not sooner paid. In the event of a default, the Note allows for an increase of interest rate from 11% to 16% and a late charge equal to 5% of the amount defaulted (NYSCEF # 5 at 1, 2). 

Plaintiff also presents five guaranty agreements on the Loan between plaintiff and each Guarantor except for Petro Run Management LLC (NYSCEF # 6 – the Guaranty Agreements). The Guaranty Agreements provide that each Guarantor except for Petro Run Management LLC “unconditionally guarantees, and becomes surety for, the prompt payment and performance of all loans, advances, debts, liabilities, obligations, covenants and duties owing by the Borrower to the Lender of any kind or nature . . . and all costs and expenses of the Lender incurred in the . . . collection . . .including reasonable attorneys’ fees and expenses” (id. § 1).

Plaintiff did not e-file a guaranty agreement of Petro Run Management LLC. But Petro Run Management LLC signed the Loan Agreement as one of the Guarantors.

On November 1, 2020, the Loan matured but Borrowers and Guarantors did not pay plaintiff in full. On November 15, 2020, plaintiff sent a notice of default to Gurpreet Singh, demanding that Borrowers and Guarantors immediately pay plaintiff the full outstanding amount of the Loan, which was $1,076,000 as of the letter date (NYSCEF # 7). Over the next couple of years, defendants remitted to plaintiff various payments in amounts ranging from $536.60 to $5,071.69 (NYSCEF # 8 – Payment Record). The payments, however, fell short of the aggregate amount defendants owed. As of October 28, 2022, the aggregate balance of the Loan increased to $1,217,924.10, consisting of a principal amount of $1,000,000 and accrued interest of $217,924.10 (NYSCEF #9 – MOL at 5). Since then, interest under the Loan has continued to accrue at a rate of 16% per annum, or $444.44 per day (id.).

Plaintiff seeks summary judgment against the defendants, jointly and severally, for (i) the amount of $1,217,924.10 (i.e., the aggregate outstanding balance as of October 28, 2022), plus additional interest accrued at an annual rate of 16% from October 29, 2022, through the date of judgment, and (ii) recovery of plaintiffs attorneys’ fees and expenses incurred to enforce the Note and the Guaranty Agreements.

Issue

Decision

Based on the foregoing, it is

ORDERED that plaintiff Itria Ventures LLC’s motion for summary judgment in lieu of complaint against defendants Singh Oil Corporation and J&P Singh Management L.P. is granted; it is further

ORDERED that plaintiff shall have judgment against defendants Singh Oil Corporation and J&P Singh Management L.P. in the amount of $1,217,924.10 with interest accrued at a rate of 16% per annum from October 29, 2022, through the date of judgment; it is further

ORDERED that plaintiff shall have judgment against defendants Singh Oil Corporation and J&P Singh Management L.P. as to liability for reasonable attorneys’ fees and expenses incurred by plaintiff in connection with this motion, with an amount to be determined by the court upon plaintiffs submission of invoices and an affirmation(s) from counsel regarding the basis for the fee charged and its reasonableness; it is further

ORDERED that plaintiffs motion for summary judgment in lieu of complaint against defendants Deep Services Inc., Narrows Road, L.L.C., Petro Run Management LLC, Bingh Oil Turnersville South Inc., Bingh Oil Cherry Hill Inc., and Gurpreet Singh is denied; and it is further

ORDERED that the Clerk of the Court enter judgment accordingly.


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