# In the matter of Southern Batteries C.P. (IB)No.116-BB-2019

> NCLT judgment dated 2019-07-05. Citation: TCN-2019-NCLT-02657. FedEx Trade Networks Transport and Brokerage Pvt. Ltd. filed CP(IB)No.116/BB/2019 under Section…

- **Court:** NCLT
- **Order date:** 5 Jul 2019
- **Citation:** TCN-2019-NCLT-02657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/southern-batteries-cp-ibno116-bb-2019-9a315403

## Summary

### Background

FedEx Trade Networks Transport and Brokerage Pvt. Ltd. filed CP(IB)No.116/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process against Southern Batteries, alleging a default of Rs. 10,02,653.20/-. FedEx, an operational creditor, claimed that Southern Batteries, the corporate debtor, failed to pay outstanding dues for international logistics support services. The case was listed for admission on multiple dates, but the issue was eventually settled amicably.

## Facts

FedEx Trade Networks Transport and Brokerage Pvt. Ltd. (FedEx) filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Southern Batteries, seeking to initiate Corporate Insolvency Resolution Process (CIRP). FedEx claimed that Southern Batteries defaulted on payments amounting to Rs. 10,02,653.20/- for international logistics support services. Southern Batteries had requested FedEx to provide these services, and invoices were raised accordingly. The Corporate Debtor made some account payments for the goods supplied. However, a balance of Rs.9,37,177.95/- remained outstanding. The case was listed for admission on several dates. Eventually, both parties filed a Joint Memo stating that they had settled the issue amicably. Southern

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process should be initiated against the Corporate …

**Ratio:** The initiation of CIRP is contingent upon the existence of a debt and a default in its

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**Reasoning:** The court noted that the parties had filed a Joint Memo indicating a settlement. The

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**Interpretation:** The IBC allows for the resolution of disputes outside the formal CIRP process.

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**Application:** In this case, the court considered the settlement reached between FedEx and

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. FedEx Trade…
- **Respondents:** M/s. Southern…

## Timeline

- **2019-03-20 — Listing for A…**: The case was listed for…
- **2019-04-02 — Listing for A…**: The case was listed for…

## 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)

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