# In the matter of Puranik Builders Limited CP(IB)-764-MB-2022

> NCLT judgment dated 2023-03-17. Citation: TCN-2023-NCLT-04174. TLG India Private Limited, the Operational Creditor, filed a Company Petition under Section 9…

- **Court:** NCLT
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-NCLT-04174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/puranik-builders-limited-cpib-764-mb-2022-0136f740

## Summary

### Background

TLG India Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Puranik Builders Limited, the Corporate Debtor. The petition was filed due to the Corporate Debtor's failure to pay an outstanding amount of ₹86,46,617/- along with interest, totaling ₹1,25,02,171/-. The Operational Creditor claimed that it rendered advertising and marketing services to the Corporate Debtor, who failed to make payments for the invoices issued.

## Facts

TLG India Private Limited (Operational Creditor) provided advertising and marketing services to Puranik Builders Limited (Corporate Debtor). The Corporate Debtor failed to pay invoices totaling ₹86,46,617/-. The Operational Creditor claimed an additional ₹38,55,554/- in interest, bringing the total claim to ₹1,25,02,171/-. The invoices issued by the Operational Creditor from February 2019 to September 2019 included a stipulation for interest at 24% p.a. on delayed payments. The last invoice fell due on 25.10.2019. The Operational Creditor sent a demand notice on 23.02.2021. The Corporate Debtor replied on 16.03.2021, denying the debt and disputing the interest. The Corporate Debtor discontinued retainership services with the Operational Creditor in August 2019 but

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on a debt exceeding the threshold limit under Section 4 of …

**Ratio:** Section 4 of the IBC stipulates a minimum

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**Reasoning:** The Adjudicating Authority found that the total debt, including principal and interest,

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**Interpretation:** Section 4 sets the financial prerequisite for triggering the insolvency

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**Application:** The court applied Section 4 by calculating the total debt owed by Puranik

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** TLG India Private…
- **Respondents:** Puranik Builders…
- **Advocates:** Prasad…; Parag Sharma…; +2 more

## Timeline

- **1990-05-08 — Incorporation of…**: Puranik Builders Limited…
- **2019-02-01 — Invoice P…**: Invoices issued from…

## 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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