# In the matter of Sunil Healthcare Limited Company Petition No. IB-1263-ND-2019

> NCLT judgment dated 2021-02-19. Citation: TCN-2021-NCLT-02985. Henan Boom Gelatin Co. Ltd., an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 19 Feb 2021
- **Citation:** TCN-2021-NCLT-02985
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunil-healthcare-limited-company-petition-no-ib-1263-nd-2019-0ee590ba

## Summary

### Background

Henan Boom Gelatin Co. Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Sunil Healthcare Limited, the corporate debtor, for non-payment of an outstanding debt of USD 3,77,392.00. The operational creditor claimed to have supplied pharmaceutical grade gelatin to the corporate debtor under various sales contracts. The corporate debtor allegedly failed to make payments within the agreed credit period. The corporate debtor acknowledged the debt in a meeting/MOU dated 27.07.2018 and undertook to make payment in three installments but failed to do so. A demand notice under Section 8 of the Code was issued on 01.02.2019.

## Facts

Henan Boom Gelatin Co. Ltd. (Operational Creditor) claimed to be a manufacturer and exporter of Gelatin & Collagen products. Sunil Healthcare Limited (Corporate Debtor) is a company incorporated on 05.02.1973 engaged in manufacturing man-made fibers. The Operational Creditor supplied pharmaceutical grade gelatin to the Corporate Debtor. Payment terms were open account 45 days after the Bill of Lading date. The goods were supplied under sales contracts bearing no 18BOOMG004 dated 25.01.2018, 18BOOMG028 dated 05.03.2018, and 18BOOMG029 dated 07.03.2018. The Operational Creditor raised invoices bearing no. 18BOOMG004 dated 11.02.2018, No. 18BOOMG028 dated 19.03.2018 and no. 18BOOMG029 dated 19.03.2018, totaling USD 3,77,392.00. The Corporate Debtor failed to make

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the operational creditor and the corporate debtor …

**Ratio:** A pre-existing dispute, if proven, bars the initiation of CIRP under Section 9 of the

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**Reasoning:** The court found that the email dated 04.05.2018 from the quality control department of

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**Interpretation:** The existence of a dispute prior to the issuance of a demand notice is a

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**Application:** In this case, the court determined that the emails exchanged between the

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** HENAN BOOM…
- **Respondents:** SUNIL HEALTHCARE…

## Timeline

- **1973-02-05 — Incorporation of…**: Sunil Healthcare Limited…
- **2018-01-25 — Sales Con…**: Sales contract bearing…

## 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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