# In the matter of East West Logistics Pvt. Ltd. (IB)-2372(ND)-2019

> NCLT judgment dated 2019-11-27. Citation: TCN-2019-NCLT-00427. The petition was filed by Aargus Global Logistics Pvt. Ltd. (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 27 Nov 2019
- **Citation:** TCN-2019-NCLT-00427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/east-west-logistics-pvt-ltd-ib-2372nd-2019-516986ab

## Summary

### Background

The petition was filed by Aargus Global Logistics Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against East West Logistics Pvt. Ltd. (Corporate Debtor) due to its inability to pay an outstanding debt of Rs. 8,91,063 along with interest. The Operational Creditor provided freight forwarding services to the Corporate Debtor, who accepted the services without raising any disputes regarding their quality.

## Facts

Aargus Global Logistics Pvt. Ltd. (Operational Creditor) provided freight forwarding services to East West Logistics Pvt. Ltd. (Corporate Debtor). Invoices totaling Rs. 10,05,794 were raised between April 26, 2018, and May 21, 2018. The Corporate Debtor paid Rs. 1,14,731, leaving an outstanding amount of Rs. 8,91,063. The Operational Creditor served a demand notice dated July 11, 2019, under Section 8 of the Insolvency & Bankruptcy Code, 2016, seeking repayment within 10 days. The Corporate Debtor neither replied to the demand notice nor made any payment. The petition was filed in September 2019.

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** Section 9 of the Insolvency & Bankruptcy Code, 2016, allows an Operational Creditor

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**Reasoning:** The court noted that the Operational Creditor had provided freight forwarding services to

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**Interpretation:** Section 9 provides a mechanism for Operational Creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, noting that the

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## Parties

- **Judges:** Ina Mal…; SUMITAPURKA…
- **Appellants:** Aargus Global…
- **Respondents:** East West…

## Timeline

- **2018-04-26 — Invoice…**: One of the invoices raised by…
- **2018-04-28 — Invoice…**: One of the invoices raised by…

## 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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