# In the matter of Astrazeneca Pharma India Ltd. CP(IB)No. 130/BB/2020

> NCLT judgment dated 2020-06-11. Citation: TCN-2020-NCLT-01182. AstraZeneca Pharma India Limited, the operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 11 Jun 2020
- **Citation:** TCN-2020-NCLT-01182
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/astrazeneca-pharma-india-ltd-cpibno-130bb2020-17825f05

## Summary

### Background

AstraZeneca Pharma India Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Brosbel Engineering Private Limited, the corporate debtor, due to a default of Rs. 6,02,277. The default arose from a purchase order placed by AstraZeneca for air conditioning units, for which an advance payment was made, but the products were not delivered. The operational creditor issued legal notices and a demand notice to the corporate debtor, but the amount remained unpaid.

## Facts

AstraZeneca Pharma India Limited (Operational Creditor) placed a purchase order with Brosbel Engineering Private Limited (Corporate Debtor) for the supply of air conditioning units. The Operational Creditor made an advance payment of Rs. 6,02,277, representing 50% of the total value of the purchase order. The Corporate Debtor failed to deliver the products within the agreed timeframe and requested an extension, citing manufacturing delays. Despite repeated follow-ups, the products were not delivered, and the advance payment was not refunded. The Operational Creditor issued a legal notice on 2018-05-09 and a demand notice on 2018-10-15 to the Corporate Debtor, demanding payment of the outstanding amount. The Corporate Debtor did not respond to the notices or make the

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## Issues and analysis

### Issue 1: Whether the instant Company Petition is …

**Ratio:** The Adjudicating Authority is not a recovery forum to get back the advance amount paid.

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**Reasoning:** The court reasoned that the petition was essentially an attempt to recover the advance

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**Interpretation:** The court interpreted the provisions of the IBC to mean that it is not a

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** AstraZeneca…
- **Respondents:** Brosbel Engineerin…

## Timeline

- **2017-10-23 — Purchase Ord…**: AstraZeneca Pharma India Limited placed a purchase order with Brosbel Engineering Private…
- **2017-11-14 — Delivery…**: Original delivery date 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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