# In the matter of Primus Energy Solutions Private Limited

> NCLT judgment dated 2024-03-01. Citation: TCN-2024-NCLT-02264. Ahuja Residency Private Limited, an operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 1 Mar 2024
- **Citation:** TCN-2024-NCLT-02264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/primus-energy-solutions-private-limited-56e0b156

## Summary

### Background

Ahuja Residency Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Primus Energy Solutions Private Limited, the corporate debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) for unpaid dues related to guest house services. The corporate debtor disputed the claim, alleging a pre-existing dispute regarding the tariff structure (monthly vs. yearly basis) for the guest house services provided.

## Facts

Ahuja Residency Private Limited (Operational Creditor) provided guest house services to Primus Energy Solutions Private Limited (Corporate Debtor). The Corporate Debtor booked the guest house for its executives. The Operational Creditor raised invoices for these services. Out of 20 invoices, 14 were fully paid, and 6 were partly paid. The Corporate Debtor paid Rs. 50,000 out of Rs. 4,42,277 for the 6 unpaid invoices, defaulting on Rs. 3,92,277. The total outstanding balance was Rs. 4,24,197, including interest. The Operational Creditor sent a demand notice under Section 8(1) of IBC, which the Corporate Debtor replied to, denying the existence of the debt, claiming the Operational Creditor concealed the fact that the price was on a monthly basis. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether demand notice …

**Ratio:** The demand notice dated 18.06.2019 was served on the Corporate Debtor on 20.06.2019. The

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**Reasoning:** The Corporate Debtor mentioned the existence of a dispute between the parties in its

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**Interpretation:** Section 9(3)(b) of the Insolvency and Bankruptcy Code, 2016 requires that there

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**Application:** The demand notice dated 18.06.2019 was

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## Parties

- **Judges:** (Dr.) P.S.N…; UMESH KUMAR…
- **Appellants:** Ahuja Residency…
- **Respondents:** Primus Energy…

## Timeline

- **2018-08-16 — Period of I…**: Operational Creditor raised invoices on the Corporate Debtor from 16.08.2018 till…
- **2018-08-18 — Partial P…**: Corporate Debtor paid…

## 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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