# in the matter of Lifespan Biotech Private Limited C.P. (IB) No. 317-9-NCLT-AHM-2018

> NCLT judgment dated 2019-05-02. Citation: TCN-2019-NCLT-03537. Kwality Industries (Bhopal) Limited, an operational creditor, filed an I.B. Petition under…

- **Court:** NCLT
- **Order date:** 2 May 2019
- **Citation:** TCN-2019-NCLT-03537
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lifespan-biotech-private-limited-cp-ib-no-317-9-nclt-ahm-2018-0a5f55e9

## Summary

### Background

Kwality Industries (Bhopal) Limited, an operational creditor, filed an I.B. Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Lifespan Biotech Private Limited, the corporate debtor. Kwality Industries claimed that Lifespan Biotech defaulted on payments amounting to Rs. 12,13,360/- from May 23, 2017. Lifespan Biotech opposed the petition, citing a fire accident in its factory on October 18, 2017, which caused severe losses and financial crisis.

## Facts

Kwality Industries (Bhopal) Limited, the operational creditor, filed an I.B. Petition against Lifespan Biotech Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Kwality Industries claimed a default of Rs. 12,13,360/- from May 23, 2017, for the supply of corrugated boxes. Lifespan Biotech opposed the petition, citing a fire accident on October 18, 2017, which caused significant financial losses. Kwality Industries is a registered company under the Companies Act, 1956, with CIN U04520MP2005PTC017642. Lifespan Biotech was incorporated on August 18, 2005, with CIN U24232MP2005PTC017873. Lifespan Biotech's authorized share capital is Rs. 10,00,00,000/-, and the paid-up share capital is Rs. 9,77,15,780/-. Lifespan Biotech had

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## Issues and analysis

### Issue 1: Whether the present I.B. Petition filed under Section 9 of the Insolvency and Bankruptcy Code is …

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

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**Reasoning:** The court considered the facts presented and found that the I.B. Petition filed under

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**Interpretation:** Section 9 provides the framework for operational creditors to initiate

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**Application:** The court applied Section 9 to the facts of the case, determining that the

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Kwality Industries…
- **Respondents:** Lifespan Biotech…; Lifespan Biotech…

## Timeline

- **2005-08-18 — Incorporation of…**: Lifespan Biotech Private…
- **2017-05-23 — Default on…**: Alleged default on payment by Lifespan…

## 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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