# In the matter of EVAN Multispeciality Hospital & Research Centre Private Limited C.P. No. IB-985-(ND)-2018

> NCLT judgment dated 2018-12-03. Citation: TCN-2018-NCLT-00229. M/s Engineered Facility Management Services filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 3 Dec 2018
- **Citation:** TCN-2018-NCLT-00229
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/evan-multispeciality-hospital-research-centre-private-limited-cp-no-ib-985-nd-20-3cd26090

## Summary

### Background

M/s Engineered Facility Management Services filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s EVAN Multispecialty Hospital & Research Centre Private Limited. The applicant claimed default in settling a demand of Rs. 27,01,812/- along with interest for services rendered. The applicant provided cleaning and housekeeping services to the respondent's hospital based on a work contract established via a Letter of Intent dated 2015-07-10. Invoicing was done monthly, and the services continued even after the initial one-year period without objection. However, after 2017-11-21, the respondent stopped making payments, despite reminders sent by the applicant.

## Facts

M/s Engineered Facility Management Services (the Applicant) provided cleaning and housekeeping services to EVAN Multispecialty Hospital & Research Centre Private Limited (the Respondent) based on a work contract established via a Letter of Intent dated 2015-07-10. The Applicant invoiced the Respondent monthly. After 2017-11-21, the Respondent stopped making payments. The Applicant sent reminders via email. On 2018-07-18, the Applicant served a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016. The Respondent admitted to owing Rs. 27,07,112/- but cited financial distress. Punjab National Bank, a creditor of the Respondent, scheduled an auction of the Respondent's secured assets. The Applicant filed an application under Section 9 of the

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## Issues and analysis

### Issue 1: Whether the Applicant, M/s Engineered Facility Management Services, has established the existence …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Tribunal noted that the Applicant presented invoices and a demand notice under

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**Interpretation:** Section 9 requires the operational creditor to prove the existence of a debt

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**Application:** In this case, the Respondent's admission of owing the debt, coupled with the

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** M/s Engineered…
- **Respondents:** Evan Multispecialt…
- **Advocates:** Manjula…; Palash Ag…

## Timeline

- **2015-07-10 — Work Contract via…**: The Applicant and the Respondent entered into a work contract via a Letter of Intent,…
- **2017-11-21 — Respondent Stops…**: The Respondent stopped making…

## 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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