# In the matter of Empirical Medi Solutions Private Limited Company Petition No. 848(IB)-MB-V-2020

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03194. The case involves a petition filed by M/s Polaris Healthcare, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/empirical-medi-solutions-private-limited-company-petition-no-848ib-mb-v-2020-05ab8a93

## Summary

### Background

The case involves a petition filed by M/s Polaris Healthcare, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Empirical Medi Solutions Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP) due to default in repayment of a loan. Polaris Healthcare had extended an unsecured loan of Rs. 2,00,000 to Empirical Medi Solutions on 31.12.2015, which was later renewed and an additional loan of Rs. 5,00,000 was disbursed on 22.12.2016. Despite repeated requests and assurances, the Corporate Debtor failed to repay the loan amount along with interest, leading to a total outstanding of Rs. 9,34,787. The Financial Creditor issued a loan recall notice on 14.06.2018, but the Corporate Debtor

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## Facts

On 31.12.2015, Polaris Healthcare extended an unsecured loan of Rs. 2,00,000 to Empirical Medi Solutions Private Limited at 12% interest, formalized by a Memorandum of Understanding (MoU) dated 28.12.2015. On 22.12.2016, the loan was renewed, and an additional Rs. 5,00,000 was disbursed under the same terms. Polaris Healthcare claims Empirical Medi Solutions defaulted, leading to an outstanding of Rs. 9,34,787, including principal (Rs. 7,00,000) and interest (Rs. 2,34,787). A loan recall notice was issued on 14.06.2018, demanding Rs. 8,34,630. Empirical Medi Solutions acknowledged the debt in a letter dated 19.06.2018, citing financial difficulties and requesting more time. The debt is also reflected in Empirical Medi Solutions' balance sheets for 2016-2017, 2017-2018,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Empirical Medi Solutions Private Limited, defaulted in repayment …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The court reasoned that the Financial Creditor presented sufficient evidence, including

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**Interpretation:** The interpretation of Section 7, read with Sections 5(8) and 3(12) of the IBC,

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**Application:** In this case, the court applied the ratio by examining the evidence presented

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## Parties

- **Judges:** SUCHITRAKAN…; ANURADHA SANJAY…
- **Appellants:** M/s Polaris…
- **Respondents:** M/s Empirical…
- **Advocates:** Geeta Lun…; Sneha C…

## Timeline

- **2015-12-31 — Initial Loan Disbursemen…**: Polaris Healthcare disbursed Rs. 2,00,000 to Empirical Medi Solutions as an unsecured…
- **2015-12-28 — Memorandum of…**: Parties entered into a Memorandum of…

## 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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