# In the matter of Standard Pharmaceuticals Limited

> NCLT judgment dated 2023-08-04. Citation: TCN-2023-NCLT-02163. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The…

- **Court:** NCLT
- **Order date:** 4 Aug 2023
- **Citation:** TCN-2023-NCLT-02163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/standard-pharmaceuticals-limited-1a808b7b

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed a total principal amount of Rs.47,57,513/-. During the pendency of the petition, the parties sought time to settle the amount. The operational creditor stated that the entire principal amount had been paid. However, the interest component remained unpaid, but the operational creditor was ready to accept interest at 6% per annum.

## Facts

Aquatic Remedies Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Standard Pharmaceuticals Limited, the corporate debtor, claiming a principal amount of Rs.47,57,513/-. During the pendency of the petition, the parties sought time to settle the amount, and the operational creditor stated that the entire principal amount had been paid. However, the interest component remained unpaid, but the operational creditor was ready to accept interest at 6% per annum. The corporate debtor did not appear. The petitioner's counsel stated that the invoices contained the rate of interest and the corporate debtor is liable to pay the same, but no acceptance by the corporate debtor to the rate of interest was seen.

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## Issues and analysis

### Issue 1: Whether the petition should be disposed of given that the principal amount has been paid during the …

**Ratio:** A petition can be disposed of if the principal amount has been paid during the course of

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**Reasoning:** The court reasoned that since the entire principal amount had been paid during the course

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**Interpretation:** This implies that if the core debt is settled during the proceedings, the court

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**Application:** In this case, the principal amount was paid and accepted, leading to the

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Kashyap…
- **Respondents:** Standard Pharmaceu…
- **Advocates:** Kashyap…

## Timeline

- **2022-08-30 — Settlement…**: Parties sought time to settle the amount, and the operational creditor stated that the…
- **2023-08-04 — Order Pronou…**: The order was pronounced,…

## 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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