The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted Pune-based Cian Healthcare into insolvency proceedings. This decision comes in response to a petition filed by one of its operational creditors regarding outstanding dues amounting to ₹1.14 crore.

Roshen Chordiya has been appointed as the interim resolution professional for the company by the tribunal.

The petition, filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Shreeji Pharmachem, an operational creditor, highlighted the non-payment of dues by the drugmaker. This section allows creditors who have supplied goods or services to initiate insolvency proceedings when payments are not made as per the agreed terms.

The bench, led by justices K. R. Saji Kumar and Sanjiv Dutt, acknowledged the creditor’s claim and the company’s admission of the outstanding debt, thereby approving the petition for insolvency.

Advocate Nausher Kohli represented Cian Healthcare, while Manoj Shirsat appeared for Shreeji Pharmachem.

The dispute stemmed from eleven unpaid invoices for goods supplied to Cian Healthcare, totaling ₹1.14 crore. Despite attempts at settlement, the company’s change in stance during negotiations indicated a lack of willingness or ability to settle the dues, as argued by the creditor’s counsel.

Cian Healthcare’s counsel, however, presented a different perspective. They asserted that the raw materials supplied by Shreeji Pharmachem for manufacturing Albendazole tablets were of subpar quality. This led to the production of defective tablets, causing financial and reputational damage to the company, especially after the government of Andhra Pradesh withheld payments for the faulty products.

Cian Healthcare, a pharmaceutical manufacturer, had sought raw materials from Shreeji Pharmachem for the production of Albendazole Tablets during 2020-22.

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