# In the matter of Trm India Private Limited C.P.(I.B)No.-398-(ND)-2020

> NCLT judgment dated 2021-05-03. Citation: TCN-2021-NCLT-02219. The case involves a petition filed by Ajay Singh @ Ajay Chauhan, Proprietor of Galaxy Logistics…

- **Court:** NCLT
- **Order date:** 3 May 2021
- **Citation:** TCN-2021-NCLT-02219
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/trm-india-private-limited-cpibno-398-nd-2020-15f6ec6d

## Summary

### Background

The case involves a petition filed by Ajay Singh @ Ajay Chauhan, Proprietor of Galaxy Logistics Services, seeking to initiate CIRP against Trim India Private Limited for alleged default in settling an amount of Rs. 96,66,919/- including interest. Galaxy Logistics Services provided freight forwarding services to Trim India Private Limited. A dispute arose regarding excess billing and the rates charged for the services. The operational creditor claims that the corporate debtor acknowledged the debt and made partial payments, while the corporate debtor alleges excess billing and a pending dispute.

## Facts

Ajay Singh @ Ajay Chauhan, operating as Galaxy Logistics Services, filed a petition to initiate CIRP against Trim India Private Limited for defaulting on a payment of Rs. 96,66,919, which included interest. Galaxy Logistics provided courier and transportation services to Trim India from 2014-15. The corporate debtor, Trim India, allegedly acknowledged the invoices raised by the operational creditor. However, a dispute arose regarding the rates charged for the services. The corporate debtor issued debit notes amounting to Rs. 1,01,23,915, claiming excess charges. The operational creditor withdrew the initial demand notice but issued another one after rectifying an inadvertence. The corporate debtor refuted the operational creditor's claim, alleging excess billing and a

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the operational creditor and the corporate debtor …

**Ratio:** The existence of a pre-existing dispute is a bar to the initiation of CIRP under the IBC.

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**Reasoning:** The court examined the WhatsApp chats, emails, and debit notes exchanged between the

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**Interpretation:** Section 8 of the IBC requires the operational creditor to issue a demand notice

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**Application:** In this case, the court found that the WhatsApp chats and emails exchanged

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Ajay Singh @ Ajay…
- **Respondents:** Trim India…

## Timeline

- **2014-01-01 — Services Co…**: Galaxy Logistics Services started providing courier and transportation services to Trim…
- **2018-12-01 — Outstandin…**: The operational creditor approached the…

## 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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