# In the matter of Luxury Train Private Limited C.P. No. 360-2016

> NCLT judgment dated 2017-12-11. Citation: TCN-2017-NCLT-00073. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Dec 2017
- **Citation:** TCN-2017-NCLT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/luxury-train-private-limited-cp-no-360-2016-3e998fa7

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Maharashtra Tourism Development Corporation (MTDC), an operational creditor, against Luxury Train Private Limited, the corporate debtor. MTDC claimed outstanding dues for operating the 'Deccan Oddessy Luxury Train'. MTDC had exclusive rights from the Railways to operate the train. Luxury Train Private Limited approached MTDC to act as a tour operator. Agreements were executed between the parties, but Luxury Train Private Limited allegedly defaulted on payments. Before filing the insolvency petition, MTDC had filed a petition under Section 439(1)(b) of the Companies Act, 1956, before the Delhi High Court, which was later transferred to the NCLT.

## Facts

Maharashtra Tourism Development Corporation (MTDC) had exclusive rights from the Railways to operate the 'Deccan Oddessy Luxury Train' since 2004. In 2009-10, Luxury Train Private Limited approached MTDC to act as a tour operator for the train. Sanction letters were issued in 2010 and 2011, and an agreement was executed in 2013 between MTDC and Luxury Train Private Limited. As per the agreement, Luxury Train Private Limited was required to pay agreed amounts towards operational costs and profit to MTDC, as well as haulage and other charges to the Railway. The entire dues were to be paid by 31.12.2013. Luxury Train Private Limited issued cheques towards these liabilities, but they were dishonored due to 'insufficient funds'. In 2014, Mr. Sajivve Trehan transferred the

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## Issues and analysis

### Issue 1: Whether Maharashtra Tourism Development Corporation qualifies as an 'Operational Creditor' under …

**Ratio:** An 'operational creditor' is defined under Section 5(20) of the IBC as a person to whom

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**Reasoning:** The court reasoned that the work, i.e., the tour operated by the respondent company,

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**Interpretation:** The definition of 'operational creditor' and 'operational debt' is interpreted

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**Application:** The court applied the definition of 'operational creditor' and 'operational

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## Parties

- **Judges:** M. M. K…; Deepa Kr…; +1 more
- **Appellants:** Maharashtra…
- **Respondents:** Luxury Train…

## Timeline

- **2004-01-01 — Exclusive Right…**: Maharashtra Tourism Development Corporation (MTDC) obtained exclusive rights from the…
- **2009-10-01 — Initial C…**: Luxury Train Private Limited approached MTDC to act as a tour operator for the 'Deccan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(20) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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