The National Company Law Tribunal, NCLT Mumbai bench in the case Nanz Med Science Pharma Private Limited vs Elder Projects Limited observed wherein the bench comprising of Technical Member, Shri Shyam Babu Gautam and the Judicial Member, Shri H.V. Subba Rao wherein the court rejected the application filed under section 9 of the Insolvency and Bankruptcy Code, 2016, while seeking initiation of Corporate Insolvency Resolution Process, CIRP against the Elder Projects Limited.
In the present case, the application was filed by the Operational Creditor, Nanz Med Science Pharma Private Limited who was being involved in the business of external preparations, formulation of hand sanitizers, disinfectants, etc. The Nanz Med Science Pharma Private Limited supplied the products to the Corporate Debtor, Elder Projects Limited on the basis of purchase orders issued from the year 2019 to 2020. Therefore, multiple invoices were also being raised for the products which are supplied. Thus, in the case the Corporate Debtor, Elder Projects Limited failed to make payments of the invoices which are raised from 16.03.2020 to 07.05.2020, the total value of which amounted for the sum of to Rs.1,18,58,507/- and due to the subsequent failures in making payments even after several notices issued, the court also issued the demand notice dated September, 24, 2021 by Nanz Med Science Pharma Pvt. Ltd. wherein demanding the payment of unpaid operational debt.
It has also been contended by the Corporate Debtor, Elder Projects Limited c that the petition moved was barred under section 10A of IBC, 2016 as for the purchase order dated 06.02.2020 and 06.03.2020, thus, the payments of which is to be made within 45 days of delivery of goods. However, the goods were last being delivered on March 20, 2020 and on May, 07, 2020. The date of default was beyond March 25, 2020 and the same fell within the purview of section 10A of Insolvency and Bankruptcy Code, 2016.
The Tribunal in the case found merit in the contentions raised by Elder Projects Limited and observed tat as per the payments which are to be made within 45 days from the date of delivery, the date of default which is beyond March 25, 2020. Also, it has been failed by Nanz Med Science Pharma Pvt to mention the date of default in Part 4 of the Petition. Therefore, the Tribunal rejected the plea filed under section 9 of IBC Code on the ground that it fell within the purview of Section 10A of Insolvency and Bankruptcy Code, 2016.
Further, the bench observed that the Corporate Debtor, Elder Projects Limited who being a non-government company and the company is involved in legal, accounting, book-keeping and the auditing activities; tax consultancy; market research and public opinion polling; business and management consultancy.
Accordingly, the court rejected the application moved under section 9 of the Insolvency and Bankruptcy Code, 2016.
