# In the matter of Akhil Logistics Private Limited C.P. No.150-I&BC-NCLT-MB-MAH-2018

> NCLT judgment dated 2018-10-25. Citation: TCN-2018-NCLT-00492. Faces Cosmetics India Private Limited, the Operational Creditor, filed a petition against Akhil…

- **Court:** NCLT
- **Order date:** 25 Oct 2018
- **Citation:** TCN-2018-NCLT-00492
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akhil-logistics-private-limited-cp-no150-ibc-nclt-mb-mah-2018-8b98bc59

## Summary

### Background

Faces Cosmetics India Private Limited, the Operational Creditor, filed a petition against Akhil Logistics Private Limited, the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) for an operational debt of ₹89,16,746/- as of 23.03.2015. The Corporate Debtor was appointed as a franchisee of Cosmetic Products, managing exclusive stores and entitled to 2% of sales. The Petitioner claims that the Corporate Debtor failed to remit collections from the stores and has not paid the outstanding amount despite a demand notice.

## Facts

Faces Cosmetics India Private Limited (Operational Creditor) appointed Akhil Logistics Private Limited (Corporate Debtor) as a franchisee to manage its exclusive cosmetic stores. The Corporate Debtor was entitled to 2% of sales as a fee. The Corporate Debtor was responsible for collecting revenue and remitting it to the Operational Creditor, with expenses reimbursed. The Operational Creditor claims that the Corporate Debtor failed to remit collections, resulting in an outstanding operational debt of ₹89,16,746/- as of 23.03.2015. The Operational Creditor issued a demand notice on 04.12.2017, requesting payment within 10 days, but received no reply. The Corporate Debtor did not file any reply to the petition or raise any objections. The Operational Creditor filed a

…

## Issues and analysis

### Issue 1: Whether the outstanding debt of ₹89,16,746/- qualifies as an 'Operational Debt' under the …

**Ratio:** Section 5 (21) of the Insolvency & Bankruptcy Code, 2016, defines 'Operational Debt'.

…

**Reasoning:** The court considered the facts and circumstances and determined that the nature of the

…

**Interpretation:** The court interpreted the definitions of 'Operational Debt' and 'Default' under

…

**Application:** The court applied the definitions to the facts of the case, noting that the

…

## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Faces Cosmetics…
- **Respondents:** Akhil Logistics…

## Timeline

- **2015-03-23 — Operational Debt Due…**: Operational Debt of…
- **2017-12-04 — Demand Notice…**: Operational Creditor issued a demand…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/akhil-logistics-private-limited-cp-no150-ibc-nclt-mb-mah-2018-8b98bc59