# In the matter of Medall Healthcare Private Limited CP(IB)-108-CHE-2021

> NCLT judgment dated 2022-05-02. Citation: TCN-2022-NCLT-02922. The case involves an application filed by M/s Pranav Labs, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02922
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/medall-healthcare-private-limited-cpib-108-che-2021-eeb499e9

## Summary

### Background

The case involves an application filed by M/s Pranav Labs, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Medall Healthcare Private Limited, the Corporate Debtor, to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a sum of Rs. 3,16,96,440/- which includes principal and interest, due from the Corporate Debtor based on a franchise agreement dated 17.12.2015. The Corporate Debtor contested the application, alleging pre-existing disputes and that no debt was due.

## Facts

M/s Pranav Labs, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Medall Healthcare Private Limited, the Corporate Debtor. The claim amounted to Rs. 3,16,96,440/-, comprising a principal of Rs. 2,36,11,644 and interest of Rs. 80,84,796. The debt arose from a franchise agreement dated 17.12.2015, under which Pranav Labs provided healthcare services to government patients and submitted invoices to Medall Healthcare. Medall Healthcare would upload these invoices for government approval, prepare reconciliation statements, and share them with Pranav Labs after scrutiny and deductions. A demand notice was issued on 25.03.2021, with a reply received on 05.04.2021. Medall Healthcare contested the application,

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT considered the submissions of both parties and the documents on record. It found

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The NCLT found that the Operational Creditor had met the requirements of

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** M/s Prana…
- **Respondents:** Medall Health…; M/s Medall…

## Timeline

- **2015-12-17 — Franchise Ag…**: Date of the franchise agreement between M/s Pranav Labs and Medall Healthcare Private…
- **2021-03-25 — Demand N…**: Operational Creditor issued a Demand…

## 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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