# In the matter of Astral SteriTech Private Limited

> NCLT judgment dated 2024-06-10. Citation: TCN-2024-NCLT-01201. Piramal Critical Care Inc., the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 10 Jun 2024
- **Citation:** TCN-2024-NCLT-01201
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/astral-steritech-private-limited-a08db674

## Summary

### Background

Piramal Critical Care Inc., the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Astral Steritech Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default amount of $6,879,726.43, with the date of default mentioned as 19.08.2023. The application was filed due to outstanding dues related to a Development, License, and Supply Agreement dated February 14, 2019, and subsequent amendments. The Corporate Debtor had granted a non-exclusive license to the Operational Creditor to commercialize medical products in the United States. A recall of products manufactured at the Corporate Debtor's facility in Vadodara, Gujarat, due to

…

## Facts

Piramal Critical Care Inc. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Astral SteriTech Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor had a Development, License, and Supply Agreement dated February 14, 2019, which was amended from time to time. The Corporate Debtor granted a non-exclusive license to the Operational Creditor to promote, market, sell, and commercialize medical products in the United States. The Corporate Debtor informed the Operational Creditor of a recall warranted for all products manufactured at its facility in Vadodara, Gujarat, due to contamination and data integrity issues. The

…

## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

…

**Reasoning:** The court found that the Corporate Debtor's claim of a pre-existing dispute was raised in

…

**Interpretation:** The interpretation of 'pre-existing dispute' requires a substantive basis and

…

**Application:** In this case, the Corporate Debtor failed to provide sufficient evidence of a

…

## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Piramal Critical…
- **Respondents:** Astral Steritech…

## Timeline

- **2019-02-14 — Development, License,…**: Parties signed a Development,…
- **2019-06-27 — First Amendment to…**: First Amendment to Development,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/astral-steritech-private-limited-a08db674