# In the matter of Nava Healthcare Pvt. Ltd.

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03167. Dadha Pharmacare, the operational creditor, filed a company petition against Nava Healthcare…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nava-healthcare-pvt-ltd-dabbd3cd

## Summary

### Background

Dadha Pharmacare, the operational creditor, filed a company petition against Nava Healthcare Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The case stems from a Clearing and Forwarding Agreement (C&F Agreement) between the two parties, where Dadha Pharmacare was appointed as the Clearing and Forwarding Agent (CFA) for Nava Healthcare's products. As part of the agreement, Dadha Pharmacare deposited Rs. 1,50,00,000/- as a fully secured and refundable Security Deposit. Dadha Pharmacare alleged that Nava Healthcare defaulted on payments, including Minimum Guarantee Commission (MGC), interest, expenses, and freight charges. Nava Healthcare opposed the admission of the application, citing deficiencies in Dadha

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## Facts

Dadha Pharmacare, an operational creditor, entered into a Clearing and Forwarding Agreement (C&F Agreement) with Nava Healthcare Pvt. Ltd., the corporate debtor, on 30.01.2020. Dadha Pharmacare was appointed as the Clearing and Forwarding Agent (CFA) for Nava Healthcare's products. As part of the agreement, Dadha Pharmacare deposited Rs. 1,50,00,000/- as a fully secured and refundable Security Deposit, refundable within 14 days of the termination of the contract. The business commenced on 30.09.2020. Dadha Pharmacare was to receive a Minimum Guarantee Commission (MGC) amounting to 2% of net sales, but not less than Rs. 6,50,000/- per month. Dadha Pharmacare also leased a warehouse in Faridabad for Nava Healthcare's operations. Dadha Pharmacare alleged that Nava

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable given the objections raised by …

**Ratio:** Section 10A of the IBC prohibits the initiation of CIRP for defaults occurring during a

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**Reasoning:** The Corporate Debtor argued that the date of default fell within the period covered by

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**Interpretation:** Section 10A provides a temporary suspension of the right to initiate CIRP for

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**Application:** The court considered whether the default occurred during the period specified

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Dadha Phar…
- **Respondents:** M/s Nava Healthcar…

## Timeline

- **2020-01-30 — Agreement…**: Clearing and Forwarding Agreement (C&F Agreement) entered into between Dadha Pharmacare…
- **2020-09-30 — Business Comm…**: Business commenced between Dadha…

## 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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