# In the matter of M Sea Pharmaceuticals Private Limited CP (IB) No. 527-Chd-HP-2019

> NCLT judgment dated 2023-04-12. Citation: TCN-2023-NCLT-03824. Indo Pack Limited, an operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 12 Apr 2023
- **Citation:** TCN-2023-NCLT-03824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-sea-pharmaceuticals-private-limited-cp-ib-no-527-chd-hp-2019-12e364a4

## Summary

### Background

Indo Pack Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M SEA Pharmaceuticals Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for printed packaging materials supplied between 07.01.2017 and 28.02.2018, resulting in an unpaid operational debt of Rs. 15,42,292/- from October 2018 onwards. The corporate debtor disputed the claim, citing a pre-existing dispute regarding the return of print cylinders and discrepancies in the claimed amount.

## Facts

Indo Pack Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M SEA Pharmaceuticals Private Limited (Corporate Debtor). Indo Pack Limited claimed that M SEA Pharmaceuticals Private Limited defaulted on payments for printed packaging materials supplied between 07.01.2017 and 28.02.2018, resulting in an unpaid operational debt of Rs. 15,42,292/- from October 2018 onwards. The last payment received by the Operational Creditor was Rs. 50,000/- on 31.10.2018. A demand notice dated 04.07.2019 was issued by the operational creditor on 06.07.2019 and delivered to the corporate debtor. The corporate debtor replied on 15.07.2019, stating that the company

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## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 …

**Ratio:** A demand notice is considered duly served when it is delivered to the corporate debtor

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**Reasoning:** The Adjudicating Authority noted that the demand notice dated 04.07.2019 in Form 3 was

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**Interpretation:** The service of a demand notice is a prerequisite for initiating CIRP under

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**Application:** In this case, the demand notice was served on the corporate debtor, and the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Indo Pack L…
- **Respondents:** M SEA Pharmaceutic…

## Timeline

- **2017-01-07 — Supply of Packaging…**: The Corporate Debtor approached Operational Creditor and placed purchase orders from time…
- **2018-02-28 — Supply of Packaging…**: The Corporate Debtor approached Operational Creditor and placed purchase orders from time…

## 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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