# In the matter of Wellous Pharma Private Limited IBA-111-2020

> NCLT judgment dated 2022-07-22. Citation: TCN-2022-NCLT-01599. M/s. Paower-Tech Engineers, an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 22 Jul 2022
- **Citation:** TCN-2022-NCLT-01599
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/wellous-pharma-private-limited-iba-111-2020-b563d315

## Summary

### Background

M/s. Paower-Tech Engineers, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Wellous Pharma Private Limited, the corporate debtor, for a claimed debt of Rs. 8,18,692/-. The operational creditor alleged that the corporate debtor defaulted in honoring invoices for electrical material and related services provided between 05.02.2018 and 11.09.2018. The corporate debtor contested the application, asserting a pre-existing dispute and deficiencies in the operational creditor's work.

## Facts

M/s. Paower-Tech Engineers (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Wellous Pharma Private Limited (Corporate Debtor) for a debt of Rs. 8,18,692/-. The debt included interest of Rs. 1,60,094/- as of 11.10.2018. The Operational Creditor claimed the Corporate Debtor defaulted on invoices for electrical material and services provided between 05.02.2018 and 11.09.2018. The Corporate Debtor argued a pre-existing dispute, citing failure to perform agreed-upon electrical work, deficiencies raised by the Electrical Inspector (letter dated 02.02.2018), and pending works listed in an email dated 02.04.2018. The Corporate Debtor also claimed the Operational Creditor failed to obtain CEA

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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 ratio decidendi is derived from the Supreme Court's decision in Mobilox Innovations

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**Reasoning:** The NCLT reasoned that the Corporate Debtor had raised a plausible contention regarding

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**Interpretation:** The interpretation of Section 9 of the IBC, as clarified by Mobilox

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**Application:** In this case, the NCLT applied the Mobilox Innovations principle to the facts

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## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Appellants:** M/s. Paower-Tech…
- **Respondents:** Wellous Pharma…

## Timeline

- **2017-06-28 — Purchase Ord…**: Date of the purchase order between the…
- **2018-02-02 — Electrical Inspector…**: Date of the letter from the Electrical Inspector raising deficiencies in the electrical…

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