# In the matter of Logix Supply Chain Solutions Private Limited C.P. (IB) No. 981-NCLT-MB-2019

> NCLT judgment dated 2020-06-17. Citation: TCN-2020-NCLT-01151. The case involves a petition filed by Mr. Ibrahim Electricwala and Mr. Ismail Electricwala…

- **Court:** NCLT
- **Order date:** 17 Jun 2020
- **Citation:** TCN-2020-NCLT-01151
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/logix-supply-chain-solutions-private-limited-cp-ib-no-981-nclt-mb-2019-0ba84927

## Summary

### Background

The case involves a petition filed by Mr. Ibrahim Electricwala and Mr. Ismail Electricwala against Logix Supply Chain Solutions Private Limited, the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petitioners claimed that the Corporate Debtor defaulted on 15.08.2017 in paying Rs. 28,59,045/-. The petitioners are the owners of a property leased to the Corporate Debtor under a leave and license agreement. The Corporate Debtor allegedly defaulted in making license fee payments from 15.08.2017, leading to a demand notice issued on 21.01.2019. A civil suit for recovery of possession was already pending before a jurisdictional civil court.

## Facts

Mr. Ibrahim Electricwala and Mr. Ismail Electricwala (the Petitioners) filed a petition against Logix Supply Chain Solutions Private Limited (the Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Petitioners claimed that the Corporate Debtor defaulted on 15.08.2017, owing Rs. 28,59,045/-. The Petitioners are the owners of a property located at Indian Corporation Complex, Bhiwandi, Thane District, which they leased to the Corporate Debtor under a leave and license agreement dated 26.04.2016, for a period of three years at a monthly license fee of Rs. 84,000/-. The Corporate Debtor allegedly defaulted in making license fee payments from 15.08.2017, leading the Petitioners to issue a demand notice on 21.01.2019. A civil suit (Special

…

## Issues and analysis

### Issue 1: Whether the debt claimed, being rent for leased property, qualifies as an 'operational debt' under …

**Ratio:** The ratio is derived from the NCLAT's decision in M.Ravindranath Reddy Vs. G. Kishan,

…

**Reasoning:** The court reasoned that the lease of immovable property does not constitute a supply of

…

**Interpretation:** The interpretation of 'Operational Debt' under Section 5(21) of the I&B

…

**Application:** Applying the ratio and reasoning to the facts, the court found that the debt

…

## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Ibrahim Electricwa…
- **Respondents:** Logix Supply…
- **Advocates:** Priyanka…

## Timeline

- **2016-04-26 — Leave and License…**: Petitioners entered into a leave and license agreement with the Corporate Debtor for…
- **2017-08-15 — Default…**: Corporate Debtor allegedly defaulted…

## 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/logix-supply-chain-solutions-private-limited-cp-ib-no-981-nclt-mb-2019-0ba84927