# In the matter of Sanyog Healthcare Limited (IB)-1045(ND)2020

> NCLT judgment dated 2021-03-12. Citation: TCN-2021-NCLT-02728. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 Mar 2021
- **Citation:** TCN-2021-NCLT-02728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sanyog-healthcare-limited-ib-1045nd2020-b2f0b87f

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Rhydburg Pharmaceuticals Ltd. (Operational Creditor) against Sanyog Healthcare Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a total debt of Rs. 3,49,65,711 as of 21.03.2020. The Corporate Debtor is engaged in the retail business of selling pharmaceutical products and had approached the Operational Creditor for purchasing pharmaceutical products for its business needs. The Corporate Debtor failed to make payments, leading the Operational Creditor to issue a demand notice under Section 8 of the IBC on 10.03.2020. The Corporate Debtor made a partial payment of Rs. 3,50,000 on 21.03.2020,

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## Facts

Rhydburg Pharmaceuticals Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Sanyog Healthcare Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on a total debt of Rs. 3,49,65,711 as of 21.03.2020. The Corporate Debtor is in the business of selling pharmaceutical products and had approached the Operational Creditor for purchasing these products. The parties agreed that the Corporate Debtor would place orders on a need basis, and the Operational Creditor would deliver the products, with payments to follow. The Operational Creditor annexed invoices from Page 102 to 129 of the Petition, depicting

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 9(5) of the IBC states that if the Adjudicating Authority is satisfied that a

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence, including

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**Interpretation:** The court interpreted Section 9(5) of the IBC to mean that if the Adjudicating

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** M/s Rhydburg…
- **Respondents:** Sanyog Healthcare…; Sanyog Healthcare…
- **Advocates:** Rajnish…; Aditya…; +1 more

## Timeline

- **2020-01-29 — Operational Creditor's…**: Operational Creditor sent a letter to the…
- **2020-03-10 — Demand Notice…**: Operational Creditor issued a Demand…

## 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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