# 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-02226. 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-02226
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/trm-india-private-limited-cpibno-398-nd-2020-6b7fb6e0

## Summary

### Background

The case involves a petition filed by Ajay Singh @ Ajay Chauhan, Proprietor of Galaxy Logistics Services, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Trim India Private Limited for an alleged default of Rs. 96,66,919/-. Galaxy Logistics Services provided courier and transportation services to Trim India. The corporate debtor allegedly defaulted on payments, leading to the operational creditor filing the petition. The corporate debtor acknowledged the invoices raised by the operational creditor but later disputed the rates and raised debit notes. The operational creditor withdrew the initial demand notice and issued a fresh one after rectifying an inadvertence.

## 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/-. Galaxy Logistics provided courier and transportation services to Trim India from 2014-2015. The corporate debtor, Trim India, approached the applicant for courier and transportation services. The operational creditor claims that the corporate debtor acknowledged the invoices raised but failed to make timely payments. The corporate debtor, represented by Mr. Rakesh Sood, initially made a partial payment of Rs. 25,00,000/- from his personal account. However, relations soured in August 2019, with the corporate debtor disputing the rates and threatening to issue debit notes. The operational

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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, as evidenced by correspondence and conduct

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**Reasoning:** The court reasoned that the WhatsApp chats and emails exchanged between the petitioner

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**Interpretation:** Section 8 of the IBC requires the absence of a pre-existing dispute for the

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**Application:** In this case, the court found that the exchange of emails and WhatsApp messages

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## Parties

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

## Timeline

- **2014-01-01 — Commencement of…**: Galaxy Logistics Services started providing courier and transportation services to Trim…
- **2018-12-01 — Approach for…**: The operational creditor approached the debtor…

## 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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