# In the matter of PVS Memorial Hospital Private Ltd. TIBA-11-KOB-2019 (IBA-677-2019 of NCLT Chennai)

> NCLT judgment dated 2019-10-16. Citation: TCN-2019-NCLT-00950. The case involves two applications, TIBA/11/KOB/2019 and IBA/28/KOB/2019, filed by operational…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00950
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pvs-memorial-hospital-private-ltd-tiba-11-kob-2019-iba-677-2019-of-nclt-chennai-13a00d2f

## Summary

### Background

The case involves two applications, TIBA/11/KOB/2019 and IBA/28/KOB/2019, filed by operational creditors against the same corporate debtor, PVS Memorial Hospital Private Ltd., under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). TIBA/11/KOB/2019 was filed by Dr. N.P. Kamalesh, while IBA/28/KOB/2019 was filed by M/s OCS Group (India) Private Ltd. Both applications contained identical claims and were therefore clubbed together. The corporate debtor was incorporated on 25.06.1992. Dr. N.P. Kamalesh claimed unpaid professional fees and incentives, while M/s OCS Group claimed dues for mechanized cleaning services provided to the hospital. The corporate debtor disputed the claims, alleging that the

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## Facts

Dr. N.P. Kamalesh, an operational creditor, was appointed as 'Junior Consultant- Gl Surgery' with PVS Memorial Hospital Private Ltd., the corporate debtor. His remuneration was revised to Rs. 3,50,000/- per month effective 01.01.2016, along with departmental incentives. The corporate debtor allegedly paid professional fees until April 2018, with payments pending from May 2018 to November 2018. Department incentives were also allegedly pending from April 2016 to November 2018. Dr. Kamalesh claimed a total default of Rs. 41,04,301/-. M/s OCS Group (India) Private Ltd., another operational creditor, provided mechanized cleaning services to the corporate debtor under a business transaction entered into on 26.03.2018. The corporate debtor initially made payments but later

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code, 2016 defines 'operational debt' as a

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**Reasoning:** The court determined that the claims made by the operational creditors, Dr. N.P. Kamalesh

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**Interpretation:** The definition of 'operational debt' is interpreted broadly to include claims

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**Application:** In this case, the claims of Dr. N.P. Kamalesh for unpaid professional fees and

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## Parties

- **Judges:** Ashok Kumar…; Veera Brahma Rao…
- **Appellants:** N.P.Kam…
- **Respondents:** PVS Memorial…
- **Advocates:** Asish M…; Sojan J…; +1 more

## Timeline

- **1992-06-25 — Incorporation of…**: PVS Memorial Hospital Private Ltd. was…
- **2016-01-01 — Revision of Rem…**: Dr. N.P. Kamalesh's remuneration was…

## 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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