# 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-01148. 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-01148
- **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-2020-95c66f27

## 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 in the NCLT Allahabad Bench but was later transferred to the NCLT New Delhi Bench due to jurisdictional issues. The operational creditor, Avbodh Medicare LLP, claimed that Felix Healthcare Pvt. Ltd. defaulted on payments for physiotherapy services provided under a license agreement. The corporate debtor, Felix Healthcare Pvt. Ltd., contested the petition, citing pre-existing disputes, deficiencies in services, and an arbitration award in their favor.

## Facts

Avbodh Medicare LLP (Operational Creditor) and Felix Healthcare Pvt. Ltd. (Corporate Debtor) entered into a license agreement on July 7, 2015, where Avbodh was to provide physiotherapy services at Felix's facility. Dr. Amar Singh, representing Avbodh, and Dr. Rashmi Gupta, representing Felix, signed the agreement. Avbodh was to set up a physiotherapy center, and Felix was to provide the space. The revenue was to be shared between the parties. Avbodh claims Felix defaulted on payments since 2016. Avbodh issued a notice on April 11, 2018, for breach of contract, and Felix replied on June 5, 2018, citing a lack of qualified staff. Avbodh terminated the agreement on July 4, 2018, and demanded the security deposit. Felix initiated arbitration proceedings, and an award was

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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:** The existence of a pre-existing dispute between the operational creditor and the

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**Reasoning:** The court reasoned that the purpose of the Insolvency and Bankruptcy Code is not to be

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**Interpretation:** The interpretation of Section 9 of the Insolvency and Bankruptcy Code, 2016,

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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 Agr…**: Avbodh Medicare LLP and Felix Healthcare Pvt. Ltd. entered into a license agreement for…
- **2016-01-01 — Payment De…**: Avbodh Medicare LLP claims that Felix Healthcare Pvt. Ltd. started defaulting on payments…

## 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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