# In the matter of Par Excellence Real Estate Private Limited IB No. 616-ND-2020

> NCLT judgment dated 2022-05-17. Citation: TCN-2022-NCLT-02736. Zoom Communications Private Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 17 May 2022
- **Citation:** TCN-2022-NCLT-02736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/par-excellence-real-estate-private-limited-ib-no-616-nd-2020-6834865f

## Summary

### Background

Zoom Communications 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 Par Excellence Real Estate Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor had engaged its services to procure a loan, for which an invoice of Rs. 57,25,000/- was raised, including taxes, with an interest of 24% per annum. The Corporate Debtor made a part-payment of Rs. 20,00,000/- but failed to pay the balance amount of Rs. 36,25,000/-. The Operational Creditor issued a demand notice dated 31.01.2020, which was not replied to by the Corporate Debtor.

## Facts

Zoom Communications Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Par Excellence Real Estate Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor engaged its services to procure a loan, raising an invoice for Rs. 57,25,000/- including taxes, with a 24% per annum interest. The invoice, numbered ZCL/2015-16/145 and dated 15.12.2015, was acknowledged by the Corporate Debtor. Part-payments totaling Rs. 21,00,000/- were made, leaving a balance of Rs. 36,25,000/-. An email dated 12.11.2019 from Mr. Kuldeep Sharma (Corporate Debtor's representative) confirmed the outstanding balance. A demand notice dated 31.01.2020 was issued under Rule 5 of

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## Issues and analysis

### Issue 1: Whether the application for initiating CIRP is maintainable when the Operational Creditor and …

**Ratio:** Section 21(2) of the IBC, 2016, restricts the rights of representation, participation, or

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**Reasoning:** The court found that both the Applicant Company (Zoom Communications) and the Corporate

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**Interpretation:** The provision in Section 21(2) of the IBC aims to prevent related parties from

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**Application:** Since Zoom Communications and Par Excellence Real Estate were related parties

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Zoom Communication…
- **Respondents:** M/s Par Excellence…
- **Advocates:** Nikhil Si…; Mohit…; +1 more

## Timeline

- **2015-12-15 — Invoice R…**: Zoom Communications raised an invoice for Rs. 57,25,000/- to Par Excellence Real Estate…
- **2016-08-11 — Part Pay…**: Par Excellence Real Estate made a part payment…

## 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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