# In the matter of Espire Resorts Private Limited

> NCLT judgment dated 2024-01-24. Citation: TCN-2024-NCLT-02947. M/s. Infinity Interiors Private Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 24 Jan 2024
- **Citation:** TCN-2024-NCLT-02947
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/espire-resorts-private-limited-6a326928

## Summary

### Background

M/s. Infinity Interiors Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Espire Resorts Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on a principal amount of Rs. 1,34,06,164/- along with interest and GST, totaling Rs. 1,46,61,792/-. The Corporate Debtor denied the allegations, claiming that the Operational Creditor had increased the amount of certified RA bills and that the amount claimed was below the statutory threshold limit. The Corporate Debtor also argued that a pre-existing dispute existed before the issuance of the Section 8 demand notice.

## Facts

M/s. Infinity Interiors Private Limited (Operational Creditor) provided interior works to M/s. Espire Resorts Private Limited (Corporate Debtor) at Fort Barwara Resort. The Operational Creditor claimed a default of Rs. 1,34,06,164/- plus interest, totaling Rs. 1,46,61,792/-, with a default date of 24.07.2021. The Corporate Debtor denied the default, stating the Operational Creditor inflated bills and the amount was below the statutory limit. The Corporate Debtor also claimed a pre-existing dispute, citing email communications showing disagreements over billing and work quality. The Operational Creditor issued a demand notice on 04.05.2022, which the Corporate Debtor replied to on 26.05.2022, disputing the bills. The Operational Creditor sent a rejoinder on 02.07.2022.

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## Issues and analysis

### Issue 1: Whether the present application is within the minimum default amount of Rs.1,00,00,000/- as …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016, specifies the minimum amount of

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**Reasoning:** The NCLT analyzed the invoices and account reconciliation statements submitted by both

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**Interpretation:** The minimum default amount is a prerequisite for initiating CIRP. The amount

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**Application:** In this case, the Operational Creditor's claim did not meet the threshold limit

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s. Infinity…
- **Respondents:** M/s. Espire…

## Timeline

- **2021-07-24 — Date of D…**: The date of default in the…
- **2022-03-23 — Exchange of…**: Parties entered into an exchange of…

## 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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