# In the matter of Realcare Building Maintenance Services Pvt. Ltd. (IB)-150-ND-2020

> NCLT judgment dated 2022-04-01. Citation: TCN-2022-NCLT-03428. The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Apr 2022
- **Citation:** TCN-2022-NCLT-03428
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/realcare-building-maintenance-services-pvt-ltd-ib-150-nd-2020-f2bb6cad

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by Innovative Facility Solutions Pvt. Ltd. (Operational Creditor) against M/S. Real Care Building Maintenance Services Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's inability to liquidate its operational debt. The Operational Creditor provided facility and payroll management services to the Corporate Debtor, who agreed to make payments as per the invoices raised. The Corporate Debtor acknowledged the unpaid amount until March 2019. Despite this acknowledgement, the amount remained unpaid, leading the Operational Creditor to issue a demand notice under Section 8 of the Code.

## Facts

Innovative Facility Solutions Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/S. Real Care Building Maintenance Services Pvt. Ltd. (Corporate Debtor). The Operational Creditor provided facility and payroll management services to the Corporate Debtor. An agreement was entered into on 2017-06-13, where the Corporate Debtor agreed to avail the services and make payments as per invoices. A new agreement was entered into on 2018-04-19. The Operational Creditor raised timely invoices, which were acknowledged by the Corporate Debtor. From August 2017 onwards, the Corporate Debtor made only part payments, leaving remaining invoices unpaid. As of the date of the application, Rs. 15,48,903/- was due.

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Adjudicating Authority considered the arguments and documents presented by the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The Adjudicating Authority admitted the application, finding that the

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## Parties

- **Judges:** P.S.N. P…; AVINASH K.…
- **Appellants:** Innovative…
- **Respondents:** M/S. Real Care…

## Timeline

- **2017-06-13 — Agreement…**: The parties entered into an agreement wherein the Corporate Debtor agreed to avail…
- **2018-04-19 — New Agreeme…**: The parties renewed the agreement…

## 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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