# In the matter of Primus Lifespaces Private Limited C.P. (IB) No. 196-BB-2019

> NCLT judgment dated 2019-11-20. Citation: TCN-2019-NCLT-00528. M/s. Platinum Communications Private Limited, an operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 20 Nov 2019
- **Citation:** TCN-2019-NCLT-00528
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/primus-lifespaces-private-limited-cp-ib-no-196-bb-2019-8db60ffb

## Summary

### Background

M/s. Platinum Communications Private Limited, an operational creditor, filed a petition under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Primus Lifespaces Private Limited, the corporate debtor, due to a default of Rs. 9,98,756/-. The corporate debtor had engaged the operational creditor for display of outdoor advertisements. The operational creditor raised an invoice for Rs. 8,15,926/-, out of which the corporate debtor paid Rs. 2,00,000/-. The operational creditor alleged non-payment despite providing services, while the corporate debtor claimed deficiency in service.

## Facts

M/s. Platinum Communications Private Limited (Operational Creditor) provided outdoor advertising services to M/s. Primus Lifespaces Private Limited (Corporate Debtor) starting August 2016. The Operational Creditor raised an invoice (DLP/09/16-17/2015) dated 30.09.2016 and P.O. No. WO/MCY/298 dated 16.08.2016 for Rs. 8,15,926/-. The Corporate Debtor paid Rs. 2,00,000/-. The Operational Creditor issued a legal notice dated 03.10.2018 for Rs. 9,10,062/- (including 18% interest). The Corporate Debtor denied liability, citing deficiency of service in replies dated 26.11.2018 and 02.01.2019. The Operational Creditor issued a demand notice dated 08.01.2019 (Form-4) for Rs. 9,52,713/- (including 18% interest). The Corporate Debtor replied on 18.01.2019, claiming payment and

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## Issues and analysis

### Issue 1: Whether there is an 'operational …

**Ratio:** The existence of an undisputed debt is a prerequisite for initiating CIRP under the IBC,

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**Reasoning:** The court relied on the Supreme Court's judgments in Mobilox Innovations Private Limited

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**Interpretation:** The term 'operational debt' must be clearly established and free from dispute

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**Application:** In this case, the court found that there was a pre-existing dispute regarding

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Platinum Communica…
- **Respondents:** Primus Lifespaces…

## Timeline

- **2016-08-01 — Services Co…**: M/s. Platinum Communications Private Limited started providing outdoor advertising…
- **2016-08-16 — P.O. Iss…**: P.O. No. WO/MCY/298 dated 16.08.2016…

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