# 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-02739. Zoom Communications Private Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 17 May 2022
- **Citation:** TCN-2022-NCLT-02739
- **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-a7bfc11a

## Summary

### Background

Zoom Communications Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against 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, raising an invoice for Rs. 57,25,000/- including taxes, with a 24% per annum interest. The Corporate Debtor made a partial payment of Rs. 20,00,000/- but failed to pay the remaining Rs. 36,25,000/-. The Operational Creditor issued a demand notice on 31.01.2020, which the Corporate Debtor did not reply to. The Corporate Debtor objected to the application, citing limitation.

## Facts

Zoom Communications Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Par Excellence Real Estate Private Limited (Corporate Debtor) for an unpaid operational debt. The debt arose from an invoice dated 15.12.2015 for Rs. 57,25,000/- including taxes, raised by Zoom Communications for services rendered in procuring a loan for Par Excellence Real Estate. The invoice included an interest of 24% per annum. Par Excellence Real Estate made a partial payment of Rs. 20,00,000/-, leaving a balance of Rs. 36,25,000/-. Zoom Communications issued a demand notice on 31.01.2020 for the outstanding amount. Par Excellence Real Estate did not reply to the demand notice but later objected to the application,

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court examined the facts presented by the operational creditor and the corporate

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**Interpretation:** Section 9 of the IBC is interpreted to allow operational creditors to initiate

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**Application:** The court found that the transaction was a sham due to the common director and

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Zoom Communication…
- **Respondents:** M/s Par Excellence…

## Timeline

- **2015-12-15 — Invoice R…**: Zoom Communications raised an invoice for Rs. 57,25,000/- including taxes for services…
- **2020-01-31 — Demand Notice…**: Zoom Communications issued a demand notice to Par Excellence Real Estate for the…

## 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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