D.J. Laboratries Pvt. Ltd Vs Kerala Medical Services Corporation Private Limited (NCLAT)
National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal filed by D.J. Laboratories Pvt. Ltd., an operational creditor, against the Kerala Medical Services Corporation Private Limited (KMSCL), upholding the Kochi Bench of the National Company Law Tribunal (NCLT)’s decision to reject insolvency proceedings. The NCLAT’s ruling on July 5, 2025, primarily hinged on the finding that D.J. Laboratories had concealed material facts when initiating its application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.
D.J. Laboratories, a supplier of drugs and medicines, contended that KMSCL owed it dues from four tenders awarded between 2010 and 2012. The supplier claimed to have delivered goods against various purchase orders, with KMSCL acknowledging receipt. The dispute escalated when D.J. Laboratories approached the Micro and Small Enterprises Facilitation Council (MSEFC), Bhopal, for unpaid dues. It was only at this stage, according to D.J. Laboratories, that KMSCL raised quality issues concerning the supplied goods.
On April 16, 2018, the MSEFC, Bhopal, delivered an award in favor of D.J. Laboratories, directing KMSCL to pay Rs. 2,12,48,146.48, which included principal and interest. Based on this award, D.J. Laboratories issued a demand notice in Form-III & Form-IV to KMSCL on May 5, 2021. When KMSCL failed to make the payment, D.J. Laboratories filed an application under Section 9 of the IBC before the NCLT, Kochi.
