# In the matter of Neoaska Pharma Private Limited CP (IB) No. 241-9-HDB-20

> NCLT judgment dated 2022-04-01. Citation: TCN-2022-NCLT-03431. The case involves an application filed by Atifa Constructions Pvt Ltd, an operational creditor,…

- **Court:** NCLT
- **Order date:** 1 Apr 2022
- **Citation:** TCN-2022-NCLT-03431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neoaska-pharma-private-limited-cp-ib-no-241-9-hdb-20-a91a3068

## Summary

### Background

The case involves an application filed by Atifa Constructions Pvt Ltd, an operational creditor, against Neoska Pharma Pvt Ltd, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed an outstanding amount of Rs. 9,51,28,800/- along with interest at 18% per annum from the date of default. The operational creditor had provided civil and structural work for the corporate debtor's proposed formulation plant at Visakhapatnam based on a Letter of Intent issued by the corporate debtor.

## Facts

Atifa Constructions Pvt Ltd (Operational Creditor) filed a petition against Neoska Pharma Pvt Ltd (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an outstanding debt of Rs. 9,51,28,800/- plus interest. The debt arose from civil and structural work done by Atifa Constructions for Neoska Pharma's proposed formulation plant in Visakhapatnam, based on a Letter of Intent (LI) issued on 23.10.2018. Invoices were raised for work done between 02.03.2019 and 15.05.2020, totaling Rs. 26,03,64,186/-, of which Rs. 18,72,58,867/- was paid. The remaining amount was not paid despite reminders. The Operational Creditor could not raise an invoice for Rs.2,20,23,483/- due to suo motu cancellation of GSTIN/UIN. The Corporate Debtor acknowledged

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' as …

**Ratio:** The legal principle is that an operational debt must exist and exceed the threshold of

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**Reasoning:** The tribunal determined that the debt claimed by the operational creditor was more than

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**Interpretation:** The term 'operational debt' is interpreted as a claim in respect of the

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**Application:** In this case, the debt arose from construction services provided by the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Atifa Construction…
- **Respondents:** Neoska Pharma Pvt…

## Timeline

- **2018-10-23 — Letter of Inte…**: Neoska Pharma Pvt Ltd issued a Letter of Intent to Atifa Constructions Pvt Ltd for civil…
- **2019-03-02 — Invoice Perio…**: Start date of the period for which Atifa…

## 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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