# In the matter of Parnika Commercial and Estates Private Limited

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00173. M/s. Airtech Airconditioning, the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/parnika-commercial-and-estates-private-limited-0758ad97

## Summary

### Background

M/s. Airtech Airconditioning, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Parnika Commercial & Estate Private Limited (Corporate Debtor). The application was based on the Corporate Debtor's alleged failure to pay an operational debt amounting to Rs. 10,19,80,054, which included a principal amount of Rs. 8,23,72,560 and interest at 18% per annum as of December 31, 2022. The Corporate Debtor disputed the debt, claiming that the Operational Creditor had not completed the work and had overbilled. The Corporate Debtor also issued a demand notice to the Operational Creditor claiming excess payment.

## Facts

M/s. Airtech Airconditioning (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Parnika Commercial & Estate Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 10,19,80,054, including principal and interest. The debt arose from work orders for providing Firefighting and Heating, Ventilation and Air Conditioning (HVAC) services at three projects: Vanijya Bhavan, Delhi; DRDO, Delhi; and IIT Bombay, Mumbai. The Operational Creditor raised invoices, but the Corporate Debtor allegedly failed to make payments. The Corporate Debtor disputed the debt, claiming that the Operational

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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 considered the submissions of both parties and found that there was a

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**Interpretation:** Section 9 of the IBC requires that there be no pre-existing dispute for an

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**Application:** The court found that the Corporate Debtor had raised complaints about the

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s Airtech…
- **Respondents:** M/s. PARNIKA…
- **Advocates:** Virendra…; Vipul G…; +3 more

## Timeline

- **2018-01-01 — Corporate Debtor…**: The Corporate Debtor approached the Operational Creditor for providing Firefighting and…
- **2019-09-19 — Work Order for Vanijya…**: The Corporate Debtor issued a work order…

## 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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