# In the matter of MBS Industries Limited

> NCLT judgment dated 2024-10-04. Citation: TCN-2024-NCLT-00488. The case involves a Company Appeal filed by M/s. Akums Drugs and Pharmaceuticals Limited, the…

- **Court:** NCLT
- **Order date:** 4 Oct 2024
- **Citation:** TCN-2024-NCLT-00488
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mbs-industries-limited-0c71684c

## Summary

### Background

The case involves a Company Appeal filed by M/s. Akums Drugs and Pharmaceuticals Limited, the Operational Creditor, against M/s. MBS Industries Limited (Company/2nd Respondent) under Section 252 of the Companies Act, 2013. The applicant sought to set aside the proceedings by the Registrar of Companies (ROC/1st Respondent) to strike off the name of the 2nd Respondent, due to non-compliance with statutory requirements, and to restore the company's name to the register to recover outstanding dues of Rs. 8,36,484/-.

## Facts

M/s. Akums Drugs and Pharmaceuticals Limited (Applicant) is an operational creditor to M/s. MBS Remedies Limited (Corporate Debtor). M/s. MBS Remedies Limited was incorporated on 19.09.2013. The authorized share capital of the company is Rs. 25,00,000. On 25.10.2013, the Applicant and the Company entered into an agreement for manufacturing of certain pharmaceutical products. The applicant manufactured the goods as per specifications/description of R2 and requested to lift the goods immediately and pay the outstanding payment amounting to Rs.7,36,484/-, vide email dated 07.08.2014. The Applicant sent a Legal Notice on 03.12.2024 stating to lift the goods within 15 days and make payment of Rs.8,36,484/-. On 06.03.2019, the Registrar of Companies (ROC) issued a notice

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## Issues and analysis

### Issue 1: Whether the Company Appeal filed by M/s. Akums Drugs and Pharmaceuticals Limited for the …

**Ratio:** The restoration of a company requires fulfillment of certain statutory requirements,

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**Reasoning:** The NCLT reasoned that the applicant's primary intention was to recover the outstanding

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**Interpretation:** The legal issue concerns the balance between a creditor's right to recover

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**Application:** The ratio and reasoning were applied to the fact that the applicant, M/s. Akums

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Akums Drugs and…
- **Respondents:** MBS REMEDIES…; Registrar of…

## Timeline

- **2013-09-19 — Incorporation of MBS…**: M/s. MBS Remedies Limited was…
- **2013-10-25 — Agreement between…**: M/s. Akums Drugs and Pharmaceuticals Limited and M/s. MBS Remedies Limited entered into…

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