NCLT Bengaluru Admits CIRP Against Vivimed Labs Over ₹2.78 Crore Operational Debt

The National Company Law Tribunal, Bengaluru, has admitted CIRP against Vivimed Labs Ltd., a listed pharma company, for default of operational debt of Rs. 2.78 crore (inclusive of interest) in a petition filed by Blue Cube Germany Assets GmbH & Co KG.

The bench, comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, made it clear that a company cannot avoid insolvency proceedings simply because a civil court has already passed a decree or because execution proceedings are underway.

It traced the dues back to supplies of perchloroethylene made by Dow Europe GmbH, noting that the right to recover those payments was later transferred to the operational creditor.

It also recorded that Vivimed had admitted its liability. A civil court decree was passed in 2019, but the dues remained unpaid despite subsequent undertakings.

Rejecting the corporate debtor's objections, the tribunal observed:

“It is a settled position of law that the mere passing of a decree does not alter the nature of the underlying transaction, which continues to be an 'operational debt' within the meaning of the Code.”

On the objection regarding pending execution proceedings, it held:

"The pendency of execution proceedings does not operate as a bar to initiation of proceedings under Section 9 of the Code, provided the ingredients of operational debt and default are satisfied. The objection that the present petition is a recovery proceeding is therefore rejected.”

On limitation, the tribunal held that written acknowledgments of liability in 2021 extended the limitation period, placing the plea within time.

Finding no pre-existing dispute and noting clear admission of liability, the tribunal admitted the petition, declared a moratorium, and appointed T. Narayana Swamy as the Interim Resolution Professional.

For Petitioner: Advocate Kajal Kumari

For Respondent: Advocate Saji P John