# In the matter of Era Shipping Pvt. Ltd. Company Petition (IB)No.170-ALD-2018

> NCLT judgment dated 2018-07-26. Citation: TCN-2018-NCLT-01060. Trans Asian Shipping Services Pvt. Ltd. (operational creditor) filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 26 Jul 2018
- **Citation:** TCN-2018-NCLT-01060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/era-shipping-pvt-ltd-company-petition-ibno170-ald-2018-2ecc7ef8

## Summary

### Background

Trans Asian Shipping Services Pvt. Ltd. (operational creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Era Shipping Pvt. Ltd. (corporate debtor). The operational creditor and Allcargo Shipping Co. Pvt. Ltd. entered into a term lease agreement dated 12.12.2014, where the operational creditor leased out 462 containers to Allcargo. Subsequently, Allcargo transferred possession of these containers to the corporate debtor, Era Shipping Pvt. Ltd., effective 01.12.2015. Disputes arose regarding unpaid rental invoices and other charges. A tripartite agreement was entered into on 21.06.2017 to settle the disputes, but issues persisted.

## Facts

Trans Asian Shipping Services Pvt. Ltd. (operational creditor) entered into a lease agreement with Allcargo Shipping Co. Pvt. Ltd. on 2014-12-12, leasing 462 containers. Allcargo transferred possession of the containers to Era Shipping Pvt. Ltd. (corporate debtor) on 2015-12-01. The operational creditor raised monthly rental invoices to the corporate debtor, but the corporate debtor failed to make payments, accumulating dues of Rs. 81,24,305/- by 2016-12-31. A tripartite agreement was made on 2017-06-21 between the operational creditor, corporate debtor, and Allcargo to settle the disputes. The corporate debtor issued a cheque for Rs. 67,50,000/-, which was dishonored due to a 'stop payment' instruction. The corporate debtor returned 3 containers to the operational

…

## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the Insolvency and …

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

…

**Reasoning:** The NCLT observed that the operational creditor had provided sufficient evidence to

…

**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

…

**Application:** In this case, the operational creditor presented evidence of unpaid invoices

…

## Parties

- **Judges:** V. P. S…; Saroj Ra…
- **Respondents:** Era Shipping Pvt.…

## Timeline

- **2014-12-12 — Lease Agr…**: Trans Asian Shipping Services Pvt. Ltd. (operational creditor) entered into a lease…
- **2015-12-01 — Transfer of Po…**: Allcargo Shipping Co. Pvt. Ltd. transferred possession of the containers to Era Shipping…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/era-shipping-pvt-ltd-company-petition-ibno170-ald-2018-2ecc7ef8