# In the matter of Ozone Realtors Pvt. Ltd.

> NCLT judgment dated 2024-01-31. Citation: TCN-2024-NCLT-02840. The petition was filed on 2022-11-16 under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Jan 2024
- **Citation:** TCN-2024-NCLT-02840
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ozone-realtors-pvt-ltd-d72a6d54

## Summary

### Background

The petition was filed on 2022-11-16 under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Starworth Infrastructure & Construction Ltd (Operational Creditor/Petitioner/OC) to initiate Corporate Insolvency Resolution Process against M/s Ozone Realtors Pvt Ltd (Corporate Debtor/Respondent/CD). The OC claimed the CD defaulted on a total outstanding amount of Rs.1,38,50,178/-. The Corporate Debtor engaged the services of the Operational Creditor for civil and finishing works in the project, Ozone Polestar at Nagavara, Bengaluru. The OC raised several invoices. After reconciliation, the total amount due was worked out to Rs.1,38,50,178/- along with interest. The CD failed to pay the amount, leading the OC to issue notices demanding payment.

## Facts

M/s Starworth Infrastructure & Construction Ltd (Operational Creditor) filed a petition against M/s Ozone Realtors Pvt Ltd (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on a total outstanding amount of Rs.1,38,50,178/-. The Corporate Debtor engaged the services of the Operational Creditor for civil and finishing works in the project, Ozone Polestar at Nagavara, Bengaluru. The Operational Creditor raised several invoices for the work done. The Corporate Debtor contested the petition, arguing that the debt amount did not meet the threshold requirement of Section 4 of the Code and that a pre-existing dispute existed. The Corporate Debtor also argued that the date of

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## Issues and analysis

### Issue 1: Whether the debt amount meets the threshold requirement of Section 4 of the Insolvency and …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016 prescribes a minimum threshold for

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**Reasoning:** The Tribunal observed that after excluding the invoices falling under Section 10A of the

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**Interpretation:** Section 4 sets the minimum financial threshold for triggering insolvency

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**Application:** Since the remaining debt after excluding the invoices under Section 10A was

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## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** M/s Starworth…
- **Respondents:** M/s. Ozone…

## Timeline

- **2020-08-07 — Letter of Award/Work…**: Corporate Debtor engaged the services of the Operational Creditor for civil and finishing…
- **2020-12-22 — First Invoi…**: Date of the first invoice raised…

## 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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