# In the matter of Felix Healthcare Pvt. Ltd. Company Petition No. (IB)-403 (ND)-2020

> NCLT judgment dated 2022-09-06. Citation: TCN-2022-NCLT-01158. Avbodh Medicare LLP filed a petition under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Sept 2022
- **Citation:** TCN-2022-NCLT-01158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/felix-healthcare-pvt-ltd-company-petition-no-ib-403-nd-2020-07d24db5

## Summary

### Background

Avbodh Medicare LLP filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Felix Healthcare Pvt. Ltd. The petition was initially filed with NCLT Allahabad but was later transferred to NCLT New Delhi due to jurisdictional issues. The claim arises from a license deed dated July 7, 2015, where Avbodh Medicare was to provide physiotherapy services in space provided by Felix Healthcare, with a revenue-sharing agreement. Disputes arose regarding payments and the quality of services provided.

## Facts

Avbodh Medicare LLP (Operational Creditor) and Felix Healthcare Pvt. Ltd. (Corporate Debtor) entered into a license deed on July 7, 2015, where Avbodh was to provide physiotherapy services in space provided by Felix, with a revenue-sharing agreement. Avbodh deposited Rs. 10 Lakhs as a security deposit. Disputes arose regarding payments, with Avbodh claiming Felix defaulted on payments since 2016. Avbodh issued a notice of breach on April 11, 2018, which Felix replied to on June 5, 2018, citing a lack of qualified staff. Avbodh terminated the license deed on July 4, 2018, demanding the security deposit back. Felix initiated arbitration proceedings, and an award was passed against Avbodh on April 27, 2019, for Rs. 34,63,512. Avbodh filed a Section 9 petition with NCLT

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## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, is maintainable …

**Ratio:** A petition under Section 9 of the IBC is not maintainable if there is a pre-existing

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**Reasoning:** The court noted that there were arbitration proceedings pending between the parties and

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**Interpretation:** The existence of a pre-existing dispute, as evidenced by pending arbitration

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**Application:** In this case, the court found that there were pre-existing disputes between

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** Avbodh Medicare…
- **Respondents:** Felix Healthcare…

## Timeline

- **2015-07-07 — License Deed E…**: Avbodh Medicare LLP and Felix Healthcare…
- **2016-01-01 — Payment Defaul…**: Avbodh Medicare claims Felix…

## 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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