Judgment Summaries- Neelkanth Medicare

  March 22, 2022

CASE SUMMARY

In the matter of Neelkanth Medicare Private Limited v. M/s ICI Healthcare Private Limited

{NCLAT, Principal Bench, New Delhi; March 09, 2022}

FACTS: The appeal was filed challenging the order passed by NCLT, Ahmedabad, dismissing Section 9 Application of the Appellant Company. The Appellant Company and the Corporate Debtor executed an agreement on November 10, 2017, for clearing and forwarding products distributed and marketed by the Corporate Debtor. As submitted by the Appellant Company, the Corporate Debtor defaulted in making payments to the Appellant Company and for the same reason the agreement executed between the two was terminated by the Appellant Company on December 18, 2018 and filed an Application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The NCLT, Ahmedabad rejected the Section 9 Application on the grounds that the demand notice and the Section 9 Application was filed by the Appellant Company was without authorization.

OBSERVATIONS: As contended by the Corporate Debtor, termination of the said agreement was disputed for not being in accordance with the dispute resolution procedure established under the agreement. The NCLAT observed that under the said agreement, in case of any dispute it is to be resolved by arbitration. The NCLAT further affirmed the observations of the NCLT, Ahmedabad that the demand notice and Section 9 Application was filed before the Board Meeting of the Appellant Company which approved the authorization of the representative of the Appellant Company.

HELD: The NCLAT held that there was no illegality in the order passed by the NCLT, Ahmedabad and the present appeal had no merits hence, dismissed.

Full text of the accessible here.

 

 

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