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

> NCLT judgment dated 2019-11-27. Citation: TCN-2019-NCLT-00420. The petition was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by Aargus…

- **Court:** NCLT
- **Order date:** 27 Nov 2019
- **Citation:** TCN-2019-NCLT-00420
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/east-west-logistics-pvt-ltd-ib-2372nd-2019-a24576ae

## Summary

### Background

The petition was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by Aargus Global Logistics Pvt. Ltd. (Operational Creditor) against East West Logistics Pvt. Ltd (Corporate Debtor). The Operational Creditor provided freight forwarding services to the Corporate Debtor, who accepted the services without dispute. Invoices were raised between 26.04.2018 and 21.05.2018, totaling Rs. 10,05,794, of which Rs. 1,14,731 was paid, leaving an outstanding amount of Rs. 8,91,063 plus interest.

## Facts

Aargus Global Logistics Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against East West Logistics Pvt. Ltd. (Corporate Debtor). The Operational Creditor provided freight forwarding services to the Corporate Debtor, who accepted these services without raising any disputes regarding their quality. Invoices were raised between April 26, 2018, and May 21, 2018, totaling Rs. 10,05,794. The Corporate Debtor paid Rs. 1,14,731, leaving an outstanding amount of Rs. 8,91,063 plus interest at 18% p.a. The Operational Creditor served a demand notice dated July 11, 2019, under Section 8 of the IBC, seeking payment within 10 days. The Corporate Debtor neither replied to the notice nor made any payment. The petition

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency & Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the documents and averments made by the Operational Creditor,

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover outstanding

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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…; SUMITA PURK…; +1 more
- **Appellants:** Aargus Global…
- **Respondents:** East West…

## Timeline

- **2018-04-26 — Invoice…**: One of the invoice dates for services…
- **2018-04-28 — Invoice…**: One of the invoice dates for services…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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