# In the matter of Dr. Indu Singh Suspended Director Of G V Meditech Pvt. Ltd.

> NCLAT judgment dated 2024-04-10. Citation: TCN-2024-NCLAT-00514. The case involves an appeal against the Adjudicating Authority's decision to admit a Section…

- **Court:** NCLAT
- **Order date:** 10 Apr 2024
- **Citation:** TCN-2024-NCLAT-00514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dr-indu-singh-suspended-director-of-g-v-meditech-pvt-ltd-59494b3b

## Summary

### Background

The case involves an appeal against the Adjudicating Authority's decision to admit a Section 9 application. The appellant argues that the Operational Creditor had previously filed a suit/proceeding before the Rent Authority claiming rent and damages, which was dismissed. The Section 9 application was filed after the dismissal of the rent proceeding, and the Demand Notice was issued subsequently. The Operational Creditor did not refer to the prior proceeding in its Section 9 application or provide a copy of the order. The appellant contends that a pre-existing dispute exists, and therefore, the Section 9 application should not have been admitted.

## Facts

Dr. Indu Singh, the suspended director of G.V. Meditech Pvt. Ltd., filed an appeal against the admission of a Section 9 application by the Adjudicating Authority. The appellant argued that Prime Tower – A Partnership Firm & Anr., the Operational Creditor, had previously filed a suit/proceeding before the Rent Authority claiming rent and damages, which was dismissed on January 12, 2023. The Section 9 application was filed after this dismissal, and the Demand Notice was issued subsequently. The Operational Creditor did not disclose the prior proceeding or provide a copy of the order in its Section 9 application. The appellant claimed a pre-existing dispute. The appellant's counsel stated that the appellant is ready to deposit the rent up to August 1, 2022, amounting

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 9 application despite the …

**Ratio:** A Section 9 application should not be admitted if a pre-existing dispute exists between

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**Reasoning:** The court considered the appellant's argument that a pre-existing dispute existed due to

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**Interpretation:** The existence of a pre-existing dispute is a bar to the admission of a Section

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**Application:** The court suspended the order admitting the Section 9 application,

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Indu S…
- **Respondents:** G.V. Meditech…; Prime Tower – A…

## Timeline

- **2023-01-12 — Dismissal of Rent…**: The suit/proceeding filed by the Operational Creditor before the Rent Authority claiming…
- **2024-04-03 — Impugned…**: The Adjudicating Authority passed an 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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