# In the matter of Pharmaceutical Products of India Limited

> NCLT judgment dated 2024-09-02. Citation: TCN-2024-NCLT-00699. M/S Sai Services, an operational creditor, filed a Company Petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 2 Sept 2024
- **Citation:** TCN-2024-NCLT-00699
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pharmaceutical-products-of-india-limited-e9c50612

## Summary

### Background

M/S Sai Services, an operational creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Pharmaceutical Products of India Limited, the corporate debtor, due to an operational debt of Rs. 1,29,12,695/- with the date of default being 17th November 2023. The operational creditor provided security services to the corporate debtor from April 2022 to October 2023. Despite reminders and assurances of payment, the corporate debtor failed to clear the outstanding dues.

## Facts

M/S Sai Services, through its Proprietor, Mr. Anil Patil, provided manpower supply for operations and security personnel to Pharmaceutical Products of India Limited. From April 2022 to October 2023, Sai Services provided security services to the Corporate Debtor's plant. Invoices were raised on time at the end of every month. The last invoice was dated 10/11/2023, with payment terms of 7 days from the invoice date. The date of default was 17/11/2023. The total amount due was Rs. 1,29,12,695/-, including Rs. 1,09,32,000/- as principal and Rs. 19,80,965/- as interest. The Corporate Debtor acknowledged the debt in letters dated 21/10/2022, 17/02/2023, and 25/09/2023. A demand notice was issued on 12/12/2023. The Corporate Debtor requested time till March 2024 to clear the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 should be …

**Ratio:** The ratio is based on Section 9 of the Insolvency and Bankruptcy Code, 2016, which allows

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**Reasoning:** The court reasoned that the Corporate Debtor acknowledged the debt through various

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**Interpretation:** The interpretation of Section 9 and related provisions of the IBC, 2016, is

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**Application:** In this case, the Operational Creditor provided security services, raised

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** M/S Sai Se…
- **Respondents:** Pharmaceutical…
- **Advocates:** Ajinkya Ku…

## Timeline

- **2022-04-01 — Service Provis…**: Operational Creditor started providing…
- **2023-10-01 — Service Provi…**: Operational Creditor ended providing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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