# In the matter of Cardiac Care and Allied Health Pvt. Ltd.

> NCLT judgment dated 2023-09-11. Citation: TCN-2023-NCLT-01727. The case involves an application filed by M/s ACE CARDIOPATHY SOLUTIONS PVT. LTD. (Operational…

- **Court:** NCLT
- **Order date:** 11 Sept 2023
- **Citation:** TCN-2023-NCLT-01727
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cardiac-care-and-allied-health-pvt-ltd-3d2f9dd8

## Summary

### Background

The case involves an application filed by M/s ACE CARDIOPATHY SOLUTIONS PVT. LTD. (Operational Creditor/Applicant) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s CARDIAC CARE AND ALLIED HEALTH PVT LTD. (Corporate Debtor/Respondent). The applicant is a supplier of medical devices, while the respondent operates a hospital named 'Heart and General Hospital'. The applicant alleges default in payment of operational dues.

## Facts

M/s ACE CARDIOPATHY SOLUTIONS PVT. LTD. (Applicant) filed an application to initiate CIRP against M/s CARDIAC CARE AND ALLIED HEALTH PVT LTD. (Corporate Debtor) due to unpaid operational debt. The Applicant supplied medical devices to the Corporate Debtor, who operates a hospital. The Corporate Debtor made timely payments until 31.03.2022, after which payments stopped. The last unpaid invoice was dated 08.11.2022. The total unpaid amount was Rs. 1,79,98,948.93 as principal and Rs. 19,73,329.59 as interest (at 18% per annum as of 31.01.2023). A demand notice was issued on 11.02.2023, to which the Corporate Debtor raised objections, alleging discrepancies and unethical practices regarding the supplies, claiming collusion between the Applicant and the former director, and

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## Issues and analysis

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

**Ratio:** Section 4 of the IBC defines the

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**Reasoning:** The Adjudicating Authority determined that the unpaid invoices aggregated to a sum

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**Interpretation:** The interpretation of 'operational debt' under Section 4 of the IBC requires

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**Application:** The unpaid amount of Rs. 1,79,98,948.93 (principal) and Rs. 19,73,329.59

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** M/s ACE CARDIOPATH…
- **Respondents:** M/s CARDIAC CARE…

## Timeline

- **2022-03-31 — Cessation of Timely…**: The Corporate Debtor stopped making timely…
- **2022-08-11 — Last Unpaid…**: The last unpaid invoice 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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