# In the matter of Servel India Private Limited (IB) 2728(ND)-2019

> NCLT judgment dated 2020-06-08. Citation: TCN-2020-NCLT-01224. Om Logistics Limited, the Operational Creditor, filed an application against Servel India…

- **Court:** NCLT
- **Order date:** 8 Jun 2020
- **Citation:** TCN-2020-NCLT-01224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/servel-india-private-limited-ib-2728nd-2019-710b5a18

## Summary

### Background

Om Logistics Limited, the Operational Creditor, filed an application against Servel India Private Limited, the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process. The application arose from unpaid freight charges for transportation services provided by Om Logistics to Servel India. A contract was entered into between the parties in July 2017, which was later renewed and amended. The Operational Creditor raised various bills for freight charges, with the last pending bill dated 07.08.2019. Despite repeated requests and a demand notice dated 19.08.2019, the Corporate Debtor failed to pay the outstanding amount of Rs. 7,94,035/-.

## Facts

Om Logistics Limited (Operational Creditor) provided transportation services to Servel India Private Limited (Corporate Debtor) under a contract initially dated 01st July, 2017, and subsequently renewed/amended. The Operational Creditor raised bills for freight charges, but the Corporate Debtor failed to make payments. As of 07.08.2019, a sum of Rs. 7,94,035/- remained unpaid. The Operational Creditor sent a demand notice dated 19.08.2019, which was received by the Corporate Debtor on 20.08.2019. The Corporate Debtor did not raise any dispute regarding the unpaid debt within ten days of receiving the demand notice, as required by Section 8(2) of the IBC, 2016. The Corporate Debtor claimed that there was no agreement, serious disputed facts, and that the application was

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor failed to raise a dispute regarding the unpaid operational debt within …

**Ratio:** Section 8(2) of the IBC, 2016, mandates that the corporate debtor must bring to the

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**Reasoning:** The court observed that the Corporate Debtor did not send a reply as required under

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**Interpretation:** Section 8(2) is interpreted to mean that a corporate debtor must formally

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**Application:** Since the Corporate Debtor failed to raise a dispute within the 10-day period,

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** OM LOGISTICS…
- **Respondents:** SERVEL INDIA…

## Timeline

- **2017-07-01 — Contract Ex…**: Contract executed between Om Logistics Limited and Servel India Private Limited for…
- **2019-07-08 — Last Pendin…**: The last pending bill for freight…

## 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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