Novacare Healthcare Solutions ... vs Max Healthcare Institute Limited
- CitationCompany Appeal (AT) (Insolvency) No.49 of 2024
Ratio decidendi
The rule this decision rests on
Where an operational creditor seeks to initiate corporate insolvency resolution against a corporate debtor under Section 9 on the strength of several debts, the creditor may not aggregate invoices issued separately by different entities, each having a distinct corporate identity, separate assets and liabilities, in order to reach the minimum default threshold, merely because those entities share a common parent corporate debtor; each invoice relied upon must, in itself, meet the threshold for the application to be maintainable.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Novacare Healthcare Solutions Pvt. Ltd. ...Appellant
Versus
Max Healthcare Institute Ltd. ...Respondent
Present: For Appellant: Mr. Lzafeer Ahmad BF, Advocate.
For Respondent: Mr. Vijay K. Sharma and Mr. Tishampati Sen, Advocates.
ORDER
(Hybrid Mode)
16.01.2024: Heard learned counsel for the Appellant. This Appeal has
been filed against the order passed by the Adjudicating Authority dated
22.11.2023 rejecting Section 9 application filed by the Appellant. Appellant
has filed petition as an Operational Creditor claiming an operational debt of
Rs.1,02,20,129/-. The Adjudicating Authority noticed that the Purchase
Orders were issued by different hospitals. The three associated companies
have different CIN and separate assets and liabilities. It was held that by
clubbing the claims which were issued against different entities, the Applicant
sought to fulfil the threshold of Rs.1 Crore. The Adjudicating Authority held
that the claim cannot be clubbed, hence, rejected the Section 9 application.
In Para 4 of the impugned order following has been held:
"4. After hearing the Learned Counsel for the Applicant and the Respondent as well as perusing the record, contention by the CD that all the three
Cont'd.../ -2-
associated companies of CD have three different CIN, separate assets and liabilities stands right. Similarly, the claims of OC against other entities of CD, Max Super Specialty Hospital, Max Smart Super Specialty and Max Super Specialty Hospital are situated at two different places, namely, Saket and Patparganj. The Petitioner has purposefully, in order to bring the company claim within threshold limit clubbed the claims against different entities of the Corporate Debtor and filed the present company petition which is not maintainable in law."
2. Learned counsel for the Appellant submits that the debt was
acknowledged by the Corporate Debtor which is parent entity of all three
hospitals, hence, the application ought not to have been rejected.
3. We have considered the submission of the Appellant and perused the
record.
4. When separate Purchase Orders were issued by the three hospitals, as
noted in the order and invoices were also issued separately, the mere fact that
parent company of the three hospitals is same, the Appellant cannot club all
the invoices and try to complete the threshold by claiming debt of
Rs.1,02,20,129/- whereas with regard to each invoice threshold is not
complete, as observed by the Adjudicating Authority in Para 4. We see no
reason to interfere with the impugned order rejecting Section 9 application.
The Appeal is dismissed.
Company Appeal (AT) (Insolvency) No.49 of 2024 -3-
5. It is further submitted by learned counsel for the Respondent that
Appellant has already initiated proceedings for these claims by way of a Civil
Suit, hence, there is pre-existing dispute also.
Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No.49 of 2024
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