# In the matter of Roselabs Bioscience Limited

> NCLT judgment dated 2024-06-05. Citation: TCN-2024-NCLT-01226. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Jun 2024
- **Citation:** TCN-2024-NCLT-01226
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/roselabs-bioscience-limited-8eafaa4f

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Financial Creditors (Wrinkle Marketing Pvt Ltd and Somnath Mechandise Private Limited) against the Corporate Debtor, Roselabs Bioscience Limited, for initiating the Corporate Insolvency Resolution Process (CIRP). The total amount in default was Rs. 18,74,23,136.46 as of 31.07.2022, with the date of default being 01.09.2013. The Financial Creditors had granted financial assistance to the Corporate Debtor as inter-corporate deposits with an 18% coupon rate compounded annually. The Corporate Debtor acknowledged the deposits and issued postdated cheques as security, which were later dishonored due to insufficient funds. The Financial Creditors then filed money suits

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## Facts

Wrinkle Marketing Pvt Ltd and Somnath Mechandise Private Limited (Financial Creditors) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Roselabs Bioscience Limited (Corporate Debtor). The total default amount was Rs. 18,74,23,136.46 as of 31.07.2022, with the default date being 01.09.2013. The Financial Creditors had provided financial assistance as inter-corporate deposits with an 18% annual coupon rate. The Corporate Debtor acknowledged these deposits and issued postdated cheques as security, which were later dishonored due to insufficient funds. The Financial Creditors then filed money suits in the Calcutta High Court and obtained favorable orders. Subsequently, they

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The principle of res judicata, as a part of the Code of Civil Procedure (CPC), can be

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**Reasoning:** The Tribunal reasoned that a similar application had already been dismissed, and the

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**Interpretation:** The interpretation of res judicata in the context of IBC proceedings is to

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**Application:** In this case, the Tribunal applied the principle of res judicata because the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Wrinkle Marketing…
- **Respondents:** Roselabs Bioscienc…

## Timeline

- **2013-09-01 — Date of D…**: The date on which the Corporate…
- **2022-07-31 — Total Amount i…**: The total amount in default was Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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