# In the matter of Krishna Premium Care Services LLP  CP (IB) No. 63-9-HDB-2022

> NCLT judgment dated 2023-04-10. Citation: TCN-2023-NCLT-03885. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Apr 2023
- **Citation:** TCN-2023-NCLT-03885
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/krishna-premium-care-services-llp-cp-ib-no-63-9-hdb-2022-2543ba7d

## Summary

### Background

The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by PMC YM-Pharma Pvt Ltd (Operational Creditor) against Krishna Premium Care Services LLP (Corporate Debtor), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted in payment of an alleged debt amounting to Rs. 1,90,50,250/-. The Corporate Debtor contested the application, alleging that the goods supplied were of inferior quality, leading to a pre-existing dispute. The NCLT Hyderabad Bench-1 examined whether an operational debt existed, whether there was a default, and whether a pre-existing dispute existed between the parties.

## Facts

PMC YM-Pharma Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Krishna Premium Care Services LLP (Corporate Debtor), claiming a default in payment of Rs. 1,90,50,250/-. The Operational Creditor stated that it supplied FQ-Acid chemical components to the Corporate Debtor against five purchase orders, raised invoices, and paid GST. The Corporate Debtor took delivery of the goods without any demur or dispute but only paid Rs. 71,00,000/- against the total invoice amount of Rs. 2,65,50,250/-, leaving a balance of Rs. 1,90,50,250/- towards principal and Rs. 79,03,070/- towards interest as of 21.02.2019. The Operational Creditor issued a legal notice on 13.11.2020 and Form 3 and 4 notices on

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## Issues and analysis

### Issue 1: Whether there is an operational debt of a sum over Rupees One Crore due and payable by the …

**Ratio:** Under Section 9 of the IBC, an application for initiation of CIRP can be admitted if an

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**Reasoning:** The NCLT observed that the Corporate Debtor had not denied the existence of an

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**Interpretation:** The legal position, as per the Supreme Court's ruling in Mobilox Innovations

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**Application:** The NCLT applied the legal principles to the facts and concluded that the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** PMC YM-Pharma Pvt…
- **Respondents:** Krishna Premium…

## Timeline

- **2019-02-21 — Outstanding…**: An amount of Rs. 1,90,50,250/- towards principal plus 14% interest i.e., Rs. 79,03,070/-…
- **2020-11-13 — Legal Notice…**: Legal notice issued on 13.11.2020…

## 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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