# In the matter of BHN Surgicals Private Limited IBA-98-2020

> NCLT judgment dated 2021-04-27. Citation: TCN-2021-NCLT-02285. The case involves an application filed by MEDI Biotek (India) Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 27 Apr 2021
- **Citation:** TCN-2021-NCLT-02285
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhn-surgicals-private-limited-iba-98-2020-5e8673d0

## Summary

### Background

The case involves an application filed by MEDI Biotek (India) Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against BHN Surgicals Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's alleged failure to pay an outstanding amount of INR 22,75,514 along with interest of INR 8,48,192, computed as of September 3, 2019, for the supply of medical appliances and certain loans and advances. The Corporate Debtor contested the application, claiming the debt was not an operational debt and that pre-existing disputes existed between the parties.

## Facts

MEDI Biotek (India) Private Limited (Operational Creditor) claimed that BHN Surgicals Private Limited (Corporate Debtor) defaulted on payments totaling INR 22,75,514 plus interest of INR 8,48,192 as of 03.09.2019, for supplied medical appliances, loans, and advances. The Operational Creditor issued a demand notice on 03.09.2019. The Corporate Debtor denied the claim and made a counter-claim of INR 26,80,000 for medical equipment supplied and commissions allegedly suppressed by the Operational Creditor. The Corporate Debtor argued that the claim was not an operational debt and that pre-existing disputes existed, supported by email correspondence. The Operational Creditor is a supplier, trader, and manufacturer of medical appliances. The Corporate Debtor was incorporated

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The adjudicating authority must reject the application under Section 9(5)(2)(d) of the

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**Reasoning:** The NCLT found that there was a pre-existing dispute between the parties, as evidenced by

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**Interpretation:** Section 9(5)(2)(d) of the Insolvency and Bankruptcy Code, 2016, mandates the

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**Application:** In this case, the NCLT found that the email correspondence between the parties

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Respondents:** BHN Surgicals…

## Timeline

- **2019-09-03 — Demand Notice…**: Operational Creditor issued a demand…
- **2019-09-09 — Reply to Deman…**: Corporate Debtor replied to the demand notice, denying the claim and raising a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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