2022 (5) TMI 989

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....ng to set in motion the Corporate Insolvency Resolution Process (CIRP) against VETPharma Ltd. (hereinafter called "Corporate Debtor") alleging that the Corporate Debtor committed default in making payment to the Operational Creditor in view of the invoices raised by them upon the Corporate Debtor, by invoking the provisions of Section 8 and 9 of Insolvency and Bankruptcy Code (hereinafter called the "Code") read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for a Resolution of Operational Debt of Rs.12,93,143/- and interest as per the decree dated 23.07.2019. 2. The counsel appearing on behalf of the Operational Creditor submitted that the Operational Creditor has supplied material to the cor....

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....ition); iv. Copy of Decree dated 23.07.2019 passed by Hon'ble Civil Judge Palghar in special Civil suit (ANNEXURE-7 of the Petition); v. Copy of legal Notice dated 25.07.2017 (ANNEXURE -6 of the Petition); vi. Copy of affidavit of no notice of dispute (ANNEXURE -11 of the Petition). IA 853/2020 filed by the Applicant/ Operational Creditor :- 6. This IA No. 853/2020 is filed by the Applicant/ Operational Creditor in this matter on 05.03.2020 seeking an order of injunction against sale of property to Bajaj Healthcare by the Corporate Debtor, VETPharma. The Applicant submits that during pendency of the main Company Petition CP(IB)-141/(MB)/2020, the Corporate Debtor entered into an agreement with Bajaj He....

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....,93,143/- with further interest. 10. The main issue in the present Petition is whether the decree holder M/s Prashant Electricals Ltd who holds a decree against the Corporate Debtor M/s VETPharma Ltd qualifies as a Financial Creditor or an Operational Creditor. In this regard, the Hon'ble Supreme Court of India in the Special Leave to Appeal (C) No.6104/2022 on 14.03.2022 in the matter of Subhankar Bhowmik Versus Union of India & Anr have held that decree holder as a class of Creditors are separate from Financial Creditors and Operational Creditors. The conclusion, therefore, is that IBC treats decree holders as a separate class of Creditors and it does not fall in the category of either a "Financial Creditor" or an "Operational Creditor....

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....pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any Court of law, tribunal, arbitration panel or other authority; (b) ......" It can be seen that the Hon'ble Supreme Court has held in the matter of Subhankar Bhowmik versus Union of India & Anr that a decree is amenable to challenge by way of an appellate process or by way of objections in the execution process. Therefore, passing of a decree may be a recognition of the claim of the decree holder. However, the said claim is subject to doubt till the execution proceedings are completed. Therefore, as per the Order of the Hon'ble Supreme Court in the matter of Subhankar Bhowmik versus Union of India whereas I....