# In the matter of Rancom Healthcare Private Limited

> NCLT judgment dated 2023-12-21. Citation: TCN-2023-NCLT-00093. The Operational Creditor, M/s Mahaveer Medicare, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 21 Dec 2023
- **Citation:** TCN-2023-NCLT-00093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rancom-healthcare-private-limited-178745b5

## Summary

### Background

The Operational Creditor, M/s Mahaveer Medicare, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s Rancom Helathcare Private Limited, due to a default in payment of Rs. 11,11,63,901. The Operational Creditor is an all-India consignee agent of Cipla Limited, while the Corporate Debtor is a sub-agent of Cipla. A tripartite agreement dated 11.04.2016 existed between Cipla, the Operational Creditor, and the Corporate Debtor, wherein the Corporate Debtor was appointed as a sub-agent for the sale/distribution/marketing of pharmaceutical products. The Corporate Debtor defaulted in remitting the complete value of the gross sales of the products,

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## Facts

M/s Mahaveer Medicare, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Rancom Helathcare Private Limited, the Corporate Debtor. The claim is based on a default of Rs. 11,11,63,901. The Operational Creditor is a consignee agent of Cipla Limited, and the Corporate Debtor is a sub-agent. A tripartite agreement dated 11.04.2016 existed between Cipla, the Operational Creditor, and the Corporate Debtor. The Corporate Debtor was responsible for remitting the gross sales of pharmaceutical products to the Operational Creditor by the 25th of the subsequent month. The Corporate Debtor defaulted in payments starting from August 2018. The Operational

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## Issues and analysis

### Issue 1: Whether there is acknowledgment of debt and default …

**Ratio:** The definition of Operational Debt under Section 5(21) of the I&B Code, 2016,

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**Reasoning:** The Adjudicating Authority found that the debt against the goods supplied falls within

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**Interpretation:** The definition of 'operational debt' is interpreted broadly to include debts

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**Application:** The Corporate Debtor's acknowledgment of the debt through WhatsApp

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/s. MAHAVEER…
- **Respondents:** M/s. RANCOM…; M/s. Rancom…

## Timeline

- **2016-04-11 — Tripartite Ag…**: A tripartite agreement was executed between Cipla Limited, the Operational Creditor (M/s…
- **2018-08-01 — Default Com…**: The Corporate Debtor began defaulting on payments for goods supplied by the Operational…

## 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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