# In the matter of Gallarie Motors Pvt. Ltd. TCP No. 418-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-01-23. Citation: TCN-2018-NCLT-01907. The case involves a transferred petition from the Hon'ble High Court, where the petitioner had…

- **Court:** NCLT
- **Order date:** 23 Jan 2018
- **Citation:** TCN-2018-NCLT-01907
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gallarie-motors-pvt-ltd-tcp-no-418-ibc-nclt-mb-mah-2017-1c62f667

## Summary

### Background

The case involves a transferred petition from the Hon'ble High Court, where the petitioner had initially sought 'Winding Up' under the Companies Act 1956. The operational creditor filed the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to non-payment of dues by the corporate debtor.

## Facts

M/s. Krystal Integrated Services Pvt. Ltd., the operational creditor, filed a petition against M/s. Global Gallarie Motors Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor had provided security, guarding, and supervising manpower services to the corporate debtor. The total principal amount in default was Rs. 5,12,499/-. The operational creditor had issued 18 sales invoices aggregating to Rs. 16,91,788/-, out of which Rs. 11,79,289/- was paid. The operational creditor issued demand notices on 18th December, 2015 and 22nd February, 2016. The corporate debtor admitted the liability during a hearing on 2nd November, 2016. No payments were received after 31st May, 2016. The invoices issued by the

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## Issues and analysis

### Issue 1: Whether the debt in question qualifies as an 'Operational Debt' under Section 5(21) of the …

**Ratio:** Section 5(21) of the IBC defines 'Operational Debt' as a claim in respect of the

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**Reasoning:** The court found that the operational creditor provided security, guarding, and

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**Interpretation:** The court interpreted 'Operational Debt' broadly to include debts arising from

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**Application:** The court applied the definition of 'Operational Debt' to the facts, concluding

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## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** M/s. Krystal…
- **Respondents:** M/s. Global…

## Timeline

- **2015-12-18 — Demand Notice…**: Operational Creditor issued a Demand Notice…
- **2016-02-22 — Demand Notice…**: Operational Creditor issued a Demand Notice…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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