# In the matter of Clan Healthcare Limited

> NCLT judgment dated 2024-06-11. Citation: TCN-2024-NCLT-01193. The case involves a Company Petition (CP (IB) No. 149/MB/2022) filed by M/s. Shreeji Pharmachem…

- **Court:** NCLT
- **Order date:** 11 Jun 2024
- **Citation:** TCN-2024-NCLT-01193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/clan-healthcare-limited-ed470063

## Summary

### Background

The case involves a Company Petition (CP (IB) No. 149/MB/2022) filed by M/s. Shreeji Pharmachem (Operational Creditor - OC) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Cian Healthcare Limited (Corporate Debtor - CD). The OC claimed a default of Rs. 1,14,50,402/- based on unpaid invoices for goods supplied to the CD. The CD contested the application, citing pre-existing disputes over the quality of goods, part-payments reducing the debt below the threshold, and its solvency.

## Facts

M/s. Shreeji Pharmachem (OC) filed a petition under Section 9 of the IBC to initiate CIRP against Cian Healthcare Limited (CD) due to an alleged default of Rs. 1,14,50,402/- based on eleven unpaid invoices. The OC supplied raw materials to the CD for manufacturing Albendazole Tablets between 2020 and 2022. The CD made a part-payment of Rs. 2,10,379/- against Invoice No. 58/2021-22 after a demand notice was issued. The OC issued a demand notice on 01.10.2021. The CD, in its reply dated 05.10.2021, sought an extension of time for repayment, citing financial issues caused by COVID-19 and delays in receiving payments from State Governments. The CD issued Post-Dated Cheques (PDCs) that were later dishonored. The CD contended that there was a pre-existing dispute over the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable given the CD's claim of …

**Ratio:** The existence of a pre-existing dispute, if genuine and raised before the issuance of a

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**Reasoning:** The NCLT found that the CD did not raise any pre-existing dispute in its reply to the

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**Interpretation:** The court interpreted that a pre-existing dispute must be raised promptly and

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**Application:** In this case, the CD's failure to raise the quality issue in its initial

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** M/s Shreeji…
- **Respondents:** Cian Healthcare…

## Timeline

- **2021-12-09 — Filing of Company…**: Company Petition (CP (IB) No. 149/MB/2022) filed by M/s. Shreeji Pharmachem under Section…
- **2021-10-01 — Demand Notice…**: The OC issued a demand notice to the CD in respect of the outstanding amount till…

## 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)

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