THE NATIONAL COMPANY LAW TRIBUNAL NEW DELHI BENCH COURT- III IB-827/ND/2022 U/S. 9 of the IBC, 2016 and Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority), Rule, 2016 IN THE MATTER OF:

M/s. KHANUJA ENTERPRISES Registered Office at: -

143, Gorakhpur Gurudwara Road, Jabalpur, Madhya Pradesh - 482001 ……Operational Creditor Versus M/s. VLCC HEATH CARE LIMITED Registered Office: -

M-14, Greater Kailash- II Commercial Complex New Delhi – 110048 …… Corporate Debtor Delivered on: - 02.11.2023 Coram:

Shri Bachu Venkat Balaram Das Hon’ble Member (Judicial)

Shri Atul Chaturvedi Hon’ble Member (Technical)

Appearances:

Operational Creditor : Ms. Pallavi Tikariha, Advocate Corporate Debtor : Mr. Pranav Sapra, Advocate

O R D E R

Per: BACHU VENKAT BALARAM DAS, MEMBER (JUDICIAL)

1. The present application has been filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred as ‘IBC, 2016’) R/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Operational Creditor, M/s. Khanuja Enterprises is seeking an Order to initiate Corporate Insolvency Resolution Process (hereinafter referred as ‘CIRP’) against the Corporate Debtor viz., M/s. VLCC Heath Care Limited, to declare moratorium and to appoint Interim Resolution Professional (hereinafter referred as ‘IRP’). The Corporate debtor is registered with ROC, NCT of Delhi & Haryana and is therefore, within the jurisdiction of this Adjudicating Authority.

2. The Operational Creditor/Petitioner has averred as follows: -

a) It is submitted that, the Applicant Company, is a Proprietorship firm and a registered MSME engaged in the business of rental and leasing activities and Corporate Debtor is a limited company engaged in the business of manufacturing heath care and beauty products.

b) The Corporate Debtor has entered into a ‘Lease Agreement’ and ‘Infrastructure and Facility Agreement’ for the supply of service of premises on rent for which the Operational Creditor raised multiple invoices in favour of Corporate Debtor.

c) In accordance with terms and conditions of the agreement executed between the parties, the Operational Creditor has rendered the rental services for which invoices were raised amounting to Rs. 2,14,16,567/-. The Corporate Debtor has made part payment of Rs. 47,46,402/- only. The outstanding liability of principal amount of Rs. 1,66,70,165/- is due and payable by the Corporate Debtor.

d) It is further averred that, the Operational Creditor herein issued a Demand Notice dated 29.08.2022 for Rs. 2,15,49,705/- (Rupees Two Crores Fifteen Lakh Forty Nine Thousand Seven Hundred Five only) to the Corporate Debtor under the provisions of section – 8 of the Insolvency and Bankruptcy Code, 2016, which was duly served upon the Corporate Debtor and the Corporate Debtor vide letter dated 03.09.2022 replied to the demand notice. 3. Per contra, Corporate debtor has raised following contentions: -

I. There are pre-existing disputes between the parties, which the Operational Creditor seeks to side-step by filing the instant Application under Section – 9 of the code. It is further averred by the Corporate Debtor that, the existence of pre-existing dispute is evident from a series of emails sent by Corporate Debtor to the Operational Creditor.

II. The Present Application filed under Section – 9 of the code fails to pass the pecuniary threshold of Rs. 1 crore, and hence not maintainable as the present Application does not meet the threshold limit of the Application filed under Section – 9 of IBC, 2016, In order to cross the threshold the Operational Creditor has included and added the outstanding balance amount out of the ‘Infrastructure and Facility Management Agreement’ dated 06.06.2018.

III. The Operational Creditor has also levied interest, calculated interest @ 3 times the bank rate of RBI compounded with monthly interest till realisation of the entire amount which is not tenable in the eyes of law.

4. We have heard the ar