# In the matter of Ramesh Murji Patel Vs. Aramex India Pvt. Ltd. & Anr. CA(AT)(Ins) No. 1447 of 2019

> NCLAT judgment dated 2019-12-16. Citation: TCN-2019-NCLAT-00013. Aramex India Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 16 Dec 2019
- **Citation:** TCN-2019-NCLAT-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ramesh-murji-patel-vs-aramex-india-pvt-ltd-anr-ca-008f205e

## Summary

### Background

Aramex India Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench –IV initiated Corporate Insolvency Resolution Process against 'Salelink Ecom Private Limited' (Corporate Debtor) via an order dated 22nd October, 2019. The Appellant, Ramesh Murji Patel, challenged this order.

## Facts

Aramex India Pvt. Ltd., the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Salelink Ecom Private Limited, the Corporate Debtor, by filing an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (NCLT), Mumbai Bench, admitted the application via an order dated 22nd October, 2019. Ramesh Murji Patel, the Appellant, challenged this order. The Appellant argued that the Operational Creditor should not have honored consignments once the credit limit of Rs. 1 Lakh was exhausted and that the application under Section 9 was not signed by an authorized person, as the authorization was done in 2013. The debt owed to the Operational Creditor was more than Rs. 1 Lakh, and there was a default in

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## Issues and analysis

### Issue 1: Whether the Operational Creditor was obliged to honour any consignment handed over once the credit …

**Ratio:** An operational creditor is entitled to payment for services rendered up to the agreed

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**Reasoning:** The court stated that the debt is payable to the Operational Creditor, and there is a

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**Interpretation:** This clarifies that exceeding a credit limit does not automatically invalidate

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**Application:** In this case, the Appellant argued that the Operational Creditor should not

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Ramesh Murj…
- **Respondents:** SALELINK ECOM…; Aramex India Pvt.…
- **Advocates:** Narender S.…; Abhishek…

## Timeline

- **2016-07-14 — Client Services…**: Client Services Agreement…
- **2016-12-01 — I&B Code Effec…**: Insolvency and Bankruptcy Code came…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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