Philips India Limited Vs. Goodwill Hospital & Research Centre Limited [Company Appeal (AT) (Insolvency) No. 14 of 2017] - Synopsis
Team SoOLEGAL 16 Feb 2021

In this case, Philips India Limited Vs. Goodwill Hospital & Research Centre Limited [Company Appeal (AT) (Insolvency) No. 14 of 2017], Operational Creditor chose two separate applications for the commencement of the Corporate Insolvency Resolution Process, citing the terms of Section 9 of the Insolvency and Bankruptcy Code, 2016, for breach in the payment of the Comprehensive Annual Maintenance Contract.
According to the Bench, the corporate debtor had raised a dispute on the standard of service/maintenance pursuant to the notification provided for in Sections 433(e) and 434(1) (a) of the Companies Act,1956, much prior to the issuance of a notice, and it can be safely claimed that there is an existence of dispute about the claim of debt. Such an opposition cannot be considered a simple objection for the purposes of 'dispute' and/or not relevant to paragraph (a) or (b) or (c) of Section 6 of Section 5. The Bench was of the view that, where the Adjudicating Authority had already declined to approve the application under section 9 of the Code, there is no basis for interference with such orders.

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