# In the matter of Cure Healthcare Private Limited IA-326(CHE)-2021 in CP(IB)-1325-2019

> NCLT judgment dated 2022-06-27. Citation: TCN-2022-NCLT-02032. The Resolution Professional of Cura Healthcare Private Ltd filed an application under Section…

- **Court:** NCLT
- **Order date:** 27 Jun 2022
- **Citation:** TCN-2022-NCLT-02032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cure-healthcare-private-limited-ia-326che-2021-in-cpib-1325-2019-545aca7e

## Summary

### Background

The Resolution Professional of Cura Healthcare Private Ltd filed an application under Section 25 & 49 of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016, seeking relief against the respondents. The application alleges fraudulent and wrongful trading by the respondents, including diversion of funds to subsidiaries, investment in subsidiaries at exorbitant rates, and mismatch of related party transactions. The applicant seeks directions for the respondents to make contributions to the assets of the corporate debtor.

## Facts

Cura Healthcare Private Limited (CHPL) underwent Corporate Insolvency Resolution Process (CIRP) initiated on 10.12.2019. The Resolution Professional (RP) filed an application alleging fraudulent transactions by the ex-directors (Respondents 1-11) and other related parties (Respondents 12-20). CHPL had availed a Cash Credit (CC) facility from State Bank of India on 20.11.2009. The RP's application highlighted several instances of diversion of funds, including investments in subsidiary companies IVES Healthcare (P) Ltd. (IVESHPL), Adonis Medical Systems (P) Ltd. (AMSPL), and Concept Integrations (India) Private Limited (CIIPL) using SBI's Cash Credit funds. The RP pointed out that CHPL invested Rs.6.04 Crore in its subsidiary companies IVES Healthcare (P) Ltd., (IVESHPL)

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## Issues and analysis

### Issue 1: Whether the alleged transactions fall under the ambit of Section 66(1) and 66(2) of the IBC, 2016, …

**Ratio:** Section 66 of the IBC, 2016, addresses fraudulent or wrongful trading. It allows the

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**Reasoning:** The court reasoned that the alleged fraudulent transactions occurred much before the

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**Interpretation:** Section 66 requires a demonstration that the director or partner knew or ought

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**Application:** The court found that the alleged transactions occurred before the initiation of

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Jayashree…
- **Respondents:** Cura Healthcare…; Mr.Deepak…
- **Advocates:** B. Dhan…; V.V. Siva…; +2 more

## Timeline

- **2009-11-20 — Cash Credit F…**: Cura Healthcare Private Limited availed a Cash Credit (CC) Facility from State Bank of…
- **2019-12-10 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Cura Healthcare Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 25 — Duties of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-25)

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