# In the matter of Calix Life Sciences Private Limited CP No. (IB) 53-MB-2022

> NCLT judgment dated 2022-06-17. Citation: TCN-2022-NCLT-02200. Eye Care Distributors, the Financial Creditor, filed a Company Petition seeking to initiate…

- **Court:** NCLT
- **Order date:** 17 Jun 2022
- **Citation:** TCN-2022-NCLT-02200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/calix-life-sciences-private-limited-cp-no-ib-53-mb-2022-71a83806

## Summary

### Background

Eye Care Distributors, the Financial Creditor, filed a Company Petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Calix Life Sciences Private Limited, the Corporate Debtor, alleging default in payment. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Corporate Debtor allegedly failed to pay an aggregate sum of Rs. 1,52,93,750.44 as of August 24, 2021, including principal and interest. The Corporate Debtor is a Group Company of Shravan Medisales Private Limited, which approached the Financial Creditor for a loan. A loan agreement was executed on October 10, 2018, with terms including disbursement

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## Facts

Eye Care Distributors (Financial Creditor) sought to initiate CIRP against Calix Life Sciences Private Limited (Corporate Debtor) for defaulting on a loan. The loan agreement, dated October 10, 2018, included a provision for converting the debt into equity by December 31, 2020. The Corporate Debtor is a group company of Shravan Medisales Private Limited (Borrower). The Borrower defaulted from August 21, 2020, and failed to convert the debt into equity. The total outstanding amount was Rs. 1,52,93,750.44 as of August 24, 2021, including a principal of Rs. 1,13,67,672 and interest at 24% per annum. The Corporate Debtor acknowledged the debt and liability in a reply dated November 26, 2020. The Financial Creditor sent a loan recall notice on July 25, 2021. The Corporate

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## Issues and analysis

### Issue 1: Whether the petition for initiation of CIRP is barred by Section 10A of the Insolvency and …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, suspends the initiation of CIRP

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**Reasoning:** The Adjudicating Authority reasoned that since the date of default, as per the Financial

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**Interpretation:** Section 10A was interpreted to mean that no application for CIRP can be filed

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**Application:** The court applied Section 10A to the facts of the case, noting that the default

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Eye Care Distribut…
- **Respondents:** Calix Life…

## Timeline

- **2018-10-10 — Loan Agre…**: Loan Agreement executed between Eye Care Distributors and Calix Life Sciences Private…
- **2020-08-21 — Default Com…**: Borrower committed defaults in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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