# In the matter of Vivin Drugs & Pharmaceuticals Private Limited.

> NCLT judgment dated 2024-11-11. Citation: TCN-2024-NCLT-00273. M/s. Sanchi Fine Chem Corp, the operational creditor, filed a company petition under Section 9…

- **Court:** NCLT
- **Order date:** 11 Nov 2024
- **Citation:** TCN-2024-NCLT-00273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vivin-drugs-pharmaceuticals-private-limited-74c872a5

## Summary

### Background

M/s. Sanchi Fine Chem Corp, the operational creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Vivin Drugs & Pharmaceuticals Ltd, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted in making payment of Rs. 3,66,91,729/- which is due and payable to the operational creditor. The corporate debtor acknowledged receiving raw materials but cited a verbal agreement for an extension of the payment deadline due to cash flow issues.

## Facts

M/s. Sanchi Fine Chem Corp, the operational creditor, filed a petition against Vivin Drugs & Pharmaceuticals Ltd, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The operational creditor claimed a default of Rs. 3,66,91,729/-. The operational creditor is a partnership firm engaged in the sale of chemicals, supplying materials to the corporate debtor based on purchase orders between 04.07.2023 and 27.11.2023. The corporate debtor acknowledged receiving the materials by endorsing delivery challans. The operational creditor issued tax invoices and e-way bills for each delivery and maintained a ledger account for the corporate debtor. The operational creditor issued a demand notice in Form No. 3 & 4 on

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## Issues and analysis

### Issue 1: Whether there is an 'operational Debt' of a sum exceeding rupees one crore, due and payable by the …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 (IBC) defines operational debt as 'A claim in

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**Reasoning:** The NCLT observed that the operational creditor received eleven purchase orders from the

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**Interpretation:** The definition of 'operational debt' under Section 5(21) of the IBC encompasses

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**Application:** The NCLT found that the corporate debtor was liable to pay the outstanding

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s. Sanchi Fine…
- **Respondents:** Vivin Drugs &…

## Timeline

- **2023-07-04 — Purchase…**: Corporate debtor placed purchase…
- **2023-11-27 — Purchase…**: Corporate debtor placed purchase…

## 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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