# In the matter of Merushikhar Realty LLP

> NCLT judgment dated 2022-05-30. Citation: TCN-2022-NCLT-02566. The Operational Creditor, M/s. Omkhush Infrastructure Pvt. Ltd., filed a petition under Section…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02566
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/merushikhar-realty-llp-61af988c

## Summary

### Background

The Operational Creditor, M/s. Omkhush Infrastructure Pvt. Ltd., filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Merushikhar Realty (LLP). The petition arises from a default in payment related to a Memorandum of Understanding (MoU) where the Corporate Debtor was to provide services for a warehousing project planned by the Operational Creditor. The Operational Creditor paid an advance of Rs. 1 Crore, but the Corporate Debtor allegedly failed to fulfill its obligations under the MoU.

## Facts

M/s. Omkhush Infrastructure Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Merushikhar Realty (LLP) (Corporate Debtor) seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 2014-09-22. The Operational Creditor and Corporate Debtor entered into a Memorandum of Understanding (MoU) on 2015-05-13 for a warehousing project near Bengaluru, Karnataka. As per the MoU, the Operational Creditor paid Rs. 1 Crore to the Corporate Debtor on 2015-05-14. The Corporate Debtor failed to comply with the terms of the MoU. The Operational Creditor sent an email on 2019-09-20 to terminate the MoU and requested a refund. A Notice of Default was issued on

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## Issues and analysis

### Issue 1: Whether the petition 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 court found that the Operational Creditor had demonstrated the existence of a debt

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The court applied Section 9 to the facts, noting that the Operational Creditor

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** M/s. Omkhush…
- **Respondents:** M/s Merushikhar…

## Timeline

- **2014-09-22 — Incorporation of…**: M/s. Merushikhar Realty…
- **2015-05-13 — Execution…**: The Operational Creditor and Corporate Debtor entered into a Memorandum of Understanding…

## 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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