# In the matter of Saflow Products Private Limited C.P. (IB) 3295-MB-2019

> NCLT judgment dated 2020-03-20. Citation: TCN-2020-NCLT-01420. This case involves a Company Petition filed by Transmec India Private Limited (Petitioner)…

- **Court:** NCLT
- **Order date:** 20 Mar 2020
- **Citation:** TCN-2020-NCLT-01420
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/saflow-products-private-limited-cp-ib-3295-mb-2019-413d55d7

## Summary

### Background

This case involves a Company Petition filed by Transmec India Private Limited (Petitioner) against Saflow Products Private Limited (Corporate Debtor) under Section 8 & 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Petitioner alleges that the Corporate Debtor defaulted in making a payment of ₹8,83,780/- along with an interest at 24% per annum. The dispute arises from a transaction where the Petitioner was engaged as a freight forwarder to transport cargo for the Corporate Debtor from Italy to Mumbai. The Corporate Debtor claims that there was a delay in the delivery of goods, causing them losses and leading to a dispute over the payment.

## Facts

Transmec India Private Limited (Petitioner) filed a petition against Saflow Products Private Limited (Corporate Debtor) for defaulting on a payment of ₹8,83,780/- plus interest. The Petitioner was engaged as a freight forwarder to transport six boxes of cargo from Milan to Mumbai for the Corporate Debtor. A Memorandum of Understanding (MOU) was signed on September 8, 2017, outlining the terms, including a standard timeline for delivery. The Corporate Debtor was required to pay 50% of the costs in advance and the balance within 15 days of cargo arrival. The cargo was ready for collection on September 19, 2017, but dispatch was booked for September 26, 2017. The cargo arrived in Mumbai in two tranches, on October 10 and 11, 2017. The Corporate Debtor claims the delivery

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the Petitioner and the Corporate Debtor regarding …

**Ratio:** The ratio laid down in Mobilox Innovations Pvt. Ltd. v/s. Kirusa Software (P) Limited-

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**Reasoning:** The court reasoned that the Corporate Debtor had raised a dispute regarding the delay in

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**Interpretation:** The interpretation of the law is that a 'dispute' under Section 8 of the

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**Application:** In this case, the court applied the ratio from Mobilox Innovations to the facts

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; Chandra Bha…; +1 more
- **Appellants:** Transmec India…
- **Respondents:** Saflow Products…
- **Advocates:** Sukanya B…; Sneha J…; +3 more

## Timeline

- **2017-09-08 — MOU Sign…**: Memorandum of Understanding (MOU) signed between Transmec India Private Limited and…
- **2017-09-19 — Cargo Ready for…**: Cargo was ready for…

## 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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