# In the matter of MN Bio-Technology Private Limited CP (IB) No. 241-9-HDB-2019

> NCLT judgment dated 2020-02-04. Citation: TCN-2020-NCLT-02082. Cerestra Advisors Private Limited, an operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 4 Feb 2020
- **Citation:** TCN-2020-NCLT-02082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mn-bio-technology-private-limited-cp-ib-no-241-9-hdb-2019-932a2f8d

## Summary

### Background

Cerestra Advisors Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against MN Bio-Technology Private Limited, the corporate debtor, for defaulting on a payment of Rs. 51,84,133. The operational creditor claimed that the corporate debtor, along with other fund subsidiaries, had approached them for advisory services and executed an Advisory Agreement dated 05.09.2016, followed by a First Addendum dated 01.03.2018. Under these agreements, the fund subsidiaries, including the corporate debtor, were required to pay advisory fees for the services availed. The corporate debtor, in its reply, alleged that the operational creditor failed to perform its obligations under the Advisory Agreement and caused

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## Facts

Messrs Cerestra Advisors Private Limited, the operational creditor, is a company incorporated under the Companies Act, 1956, engaged in investing in 'real assets'. Messrs MN Bio-Technology Private Limited, the corporate debtor, is a company registered under the Companies Act, 1956, involved in leasing out office premises to Pharma, Research and Development, and Life Science companies. The Corporate Debtor along with M/s MN Science & Technology Limited, M/s MN Takshila Industries Pvt Ltd., MN Gachibowli Tech Park Private Limited, M/s MN Gachibowli II Tech Park Private Limited, M/s Deccan Bio Ventures Private Limited, M/s MN Life Science Centre (Pragnapur) Pvt Ltd., M/s Takshila Tech Parks & Incubators (India) Pvt Ltd., M/s Genome Valley Tech Parks &

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## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 is maintainable …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority found that the operational creditor had provided services to

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational creditor can

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**Application:** In this case, the operational creditor demonstrated the existence of an

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** Cerestra Advisors…
- **Respondents:** MN Bio-Technology…

## Timeline

- **2016-09-05 — Advisory Ag…**: Advisory Agreement executed between the…
- **2018-03-01 — First Addendum to the…**: First Addendum to the Advisory Agreement executed between the Operational Creditor and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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