# In the matter of Greater Kailash Hospitals Private Limited

> NCLT judgment dated 2024-07-30. Citation: TCN-2024-NCLT-00919. Sukhkarta Medicose, the financial creditor, filed a petition under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 30 Jul 2024
- **Citation:** TCN-2024-NCLT-00919
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/greater-kailash-hospitals-private-limited-be0584fe

## Summary

### Background

Sukhkarta Medicose, the financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Greater Kailash Hospitals Private Limited, the corporate debtor. The financial creditor and corporate debtor entered into an agreement in 2017, where the financial creditor deposited Rs 2,10,00,000 as a security deposit for using shop premises owned by the corporate debtor for a pharmacy business. The agreement was valid for three years. The financial creditor terminated the agreement on 31.01.2023 and demanded the security deposit back. The corporate debtor, facing financial difficulties, proposed to treat the security deposit as a loan. A fresh agreement was executed on

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## Facts

Sukhkarta Medicose (Financial Creditor) and M/s Greater Kailash Hospitals Private Limited (Corporate Debtor) entered into an agreement in 2017, where Sukhkarta Medicose deposited Rs 2,10,00,000 as a security deposit to use the Corporate Debtor's premises for a pharmacy. The agreement was valid for three years. Sukhkarta Medicose terminated the agreement on 31.01.2023 and demanded the security deposit back. The Corporate Debtor, facing financial difficulties, proposed to treat the security deposit as a loan. A fresh agreement was executed on 02.04.2023, modifying the repayment terms. The Corporate Debtor defaulted on the repayment, with a default date of 30.06.2023 and a default amount of Rs 2,28,90,000. Sukhkarta Medicose issued reminder letters. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor …

**Ratio:** The principle is that if a corporate debtor fails to repay its debts as per the agreed

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**Reasoning:** The court observed that the corporate debtor had failed to repay the debt by the due date

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**Interpretation:** The interpretation is that any failure to meet the repayment obligations as per

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**Application:** In this case, the Corporate Debtor's failure to repay the debt by 30.06.2023,

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## Parties

- **Judges:** Chitra Ram…; KAUSHALENDRA…
- **Appellants:** Sukhkarta M…
- **Respondents:** M/s Greater…; M/s Greater…

## Timeline

- **2017-01-01 — Agreement between Financial Creditor and…**: Financial creditor and corporate debtor entered into an agreement for use of shop…
- **2017-12-25 — Agreement…**: Agreement dated 25.12.2017 was executed between the parties to use and run the business…

## 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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