# In the matter of Creatoz Builders Private Limited

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00696. Virendra K Pawar, the Operational Creditor/Petitioner, filed a Company Petition under Section 9…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00696
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/creatoz-builders-private-limited-8b214c34

## Summary

### Background

Virendra K Pawar, the Operational Creditor/Petitioner, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Creatoz Builders Private Limited, the Corporate Debtor/Respondent. The Respondent was incorporated on 23.11.2005 under the Companies Act, 1956. The Operational Creditor provided electrical works for the Respondent's residential project "Jade Residences". The Corporate Debtor acknowledged the completion of work on 23.12.2018, but failed to pay the outstanding amount and refund retention money.

## Facts

Virendra K Pawar, operating as Shree Electricals Enterprises, is a licensed electrical contractor. Creatoz Builders Private Limited, the Corporate Debtor, is engaged in works contracts. The Operational Creditor provided electrical services to the Corporate Debtor for its residential project "Jade Residences" in Wagholi, Pune. The Corporate Debtor issued work orders to the Operational Creditor, which were later amended. The Operational Creditor submitted RA bills, which were approved and certified by the Corporate Debtor. A completion certificate dated 23.12.2018, signed by P. Vijay Sarathy Guptha, representative of the Corporate Debtor, acknowledged the satisfactory completion of electrical work valued at Rs. 5,90,93,000/-. Despite the completion certificate,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in payment of the outstanding debt to the Operational …

**Ratio:** Section 9(3)(b) of the IBC requires the existence of a default in payment of debt. The

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**Reasoning:** The court found that the Respondent had defaulted in the payment of the outstanding debt

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**Interpretation:** The legal principle is that if a debt is due and payable and the debtor fails

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**Application:** The court applied this principle to the facts, noting that the Corporate Debtor

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## Parties

- **Judges:** SH. Justice…; SH. PRABHAT…
- **Appellants:** Virendra K…
- **Respondents:** Creatoz Builders…

## Timeline

- **2005-11-23 — Incorporation of…**: Creatoz Builders Private Limited was…
- **2018-05-01 — First Invoi…**: Date of the first invoice raised by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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