# In the matter of Shilpa Medicare Limited

> NCLT judgment dated 2023-08-24. Citation: TCN-2023-NCLT-01934. Raptim Research Private Limited, the operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 24 Aug 2023
- **Citation:** TCN-2023-NCLT-01934
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shilpa-medicare-limited-0045bb44

## Summary

### Background

Raptim Research Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Shilpa Medicare Limited, the corporate debtor. The petition was based on the ground that the corporate debtor defaulted on an outstanding amount of Rs. 1,65,20,000 with interest at 18% p.a. from August 31, 2021, totaling Rs. 1,85,00,000. The operational creditor and corporate debtor entered into a Master Service Agreement on April 19, 2019, for conducting Bio Equivalence studies and Invitro studies. Disputes arose regarding the quality of services provided by the operational creditor and the timelines adhered to, leading to the corporate debtor withholding payments.

## Facts

Raptim Research Private Limited (Operational Creditor) filed a petition against Shilpa Medicare Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The claim was based on a default of Rs. 1,65,20,000 plus interest, totaling Rs. 1,85,00,000. A Master Service Agreement (MSA) was entered into on April 19, 2019, for Bio Equivalence and Invitro studies. The Operational Creditor raised invoices between November 2020 and February 2021. The Corporate Debtor failed to make timely payments, citing defective services and non-adherence to timelines. The Corporate Debtor conducted a retrospective audit from December 14-15, 2020, raising queries. The Operational Creditor allegedly

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## Issues and analysis

### Issue 1: Whether there exists a pre-existing dispute between the operational creditor and the corporate …

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting an application

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**Reasoning:** The court reasoned that the email communications between the parties, particularly the

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**Interpretation:** The interpretation of the law is that if there is a dispute between the

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**Application:** In this case, the court applied the ratio to the facts by observing that the

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Raptim Research…
- **Respondents:** Shilpa Medicare…
- **Advocates:** Raghuram C…; Deepa…; +2 more

## Timeline

- **2019-04-19 — Master Service…**: The Petitioner and Respondent entered into a Master Service Agreement to conduct Bio…
- **2020-01-01 — Corporate Debtor…**: The Corporate Debtor provided investigational…

## 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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