# In the matter of VETPharma Ltd. IA 853-2020 in CP (IB)-141-(MB)-2020

> NCLT judgment dated 2022-05-02. Citation: TCN-2022-NCLT-02926. The case involves a Company Petition filed by Prashant Electricals Ltd. (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02926
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vetpharma-ltd-ia-853-2020-in-cp-ib-141-mb-2020-a2427006

## Summary

### Background

The case involves a Company Petition filed by Prashant Electricals Ltd. (Operational Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against VETPharma Ltd. (Corporate Debtor) due to alleged default in payment for invoices raised. The Operational Creditor invoked Section 8 and 9 of the Insolvency and Bankruptcy Code (IBC), seeking resolution of an operational debt of Rs. 12,93,143/- plus interest, based on a decree dated 23.07.2019. The Operational Creditor also filed IA 853/2020 seeking an injunction against the sale of property by VETPharma to Bajaj Healthcare Ltd during the pendency of the main Company Petition.

## Facts

Prashant Electricals Ltd. (Operational Creditor) filed a Company Petition seeking to initiate CIRP against VETPharma Ltd. (Corporate Debtor) for non-payment of dues. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for invoices totaling Rs. 12,93,143/-. The invoices were raised for the supply of goods between 09.02.2016 and 27.06.2016. The Corporate Debtor made an advance payment of Rs. 3,62,000/- against the invoice dated 09.02.2016. The Operational Creditor had previously filed a Special Civil Suit No. 39 of 2017, which resulted in a decree dated 23.07.2019 in their favor. The Operational Creditor issued a demand notice on 19.09.2019 under Section 8 of the IBC. The Operational Creditor also filed IA 853/2020 seeking an injunction

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## Issues and analysis

### Issue 1: Whether the decree holder, M/s Prashant Electricals Ltd, qualifies as a Financial Creditor or an …

**Ratio:** The Supreme Court in Subhankar Bhowmik Versus Union of India & Anr held that decree

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**Reasoning:** The court reasoned that the IBC does not provide for any overlap of classes of creditors,

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**Interpretation:** The interpretation of the IBC, particularly in light of the Supreme Court's

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**Application:** In this case, Prashant Electricals Ltd., being a decree holder against

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## Parties

- **Judges:** H. V. Sub…; Chandra Bha…
- **Appellants:** Prashant Electrica…
- **Respondents:** VETPharma…
- **Advocates:** Devul D…; Yash Pa…

## Timeline

- **2016-02-09 — Invoice…**: One of the three invoices raised by…
- **2016-06-27 — Invoice…**: One of the three invoices raised by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vetpharma-ltd-ia-853-2020-in-cp-ib-141-mb-2020-a2427006