# In the matter of Asmi Express Private Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02196. The case involves a petition filed by Patel Integrated Logistics Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02196
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/asmi-express-private-limited-3e4293a4

## Summary

### Background

The case involves a petition filed by Patel Integrated Logistics Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Asmi Express Private Limited (Corporate Debtor). The Operational Creditor claimed a total amount of Rs. 2,63,46,928.15, with a principal amount due of Rs. 1,29,41,882. The Corporate Debtor allegedly defaulted on payments for logistical services provided by the Operational Creditor under an All India Cargo Agreement. Despite a settlement agreement and partial payments, a significant amount remained unpaid.

## Facts

Patel Integrated Logistics Limited (Operational Creditor) filed a petition against Asmi Express Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The claim was for Rs. 2,63,46,928.15, including a principal amount of Rs. 1,29,41,882, arising from unpaid invoices for logistical services provided under an All India Cargo Agreement dated 31.12.2013. The invoices were issued between December 2015 and March 2016. The Corporate Debtor confirmed outstanding dues of Rs. 2,67,76,927 as of 31.03.2016. A settlement agreement was executed on 07.02.2017, where the Corporate Debtor agreed to pay Rs. 1,68,57,954 in five monthly installments starting from 28.02.2017. The Corporate Debtor failed to adhere to the

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## Issues and analysis

### Issue 1: Whether the claim of the Operational Creditor constitutes an 'operational debt' under Section 5(21) …

**Ratio:** A breach of a settlement agreement does not give rise to an operational debt under

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**Reasoning:** The court relied on the judgment of the NCLAT in Trafigura India Private Limited vs. TDT

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**Interpretation:** Section 5(21) of the IBC defines 'operational debt' as a claim in respect of

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**Application:** In this case, the default occurred because the Corporate Debtor failed to

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## Parties

- **Judges:** Smt Bidisha…; Balraj…
- **Appellants:** Patel integrated…
- **Respondents:** Asmi Express…
- **Advocates:** Snehashi…

## Timeline

- **2013-12-31 — Cargo Agreement…**: Cargo agreement between Patel Integrated Logistics Limited and Asmi Express Private…
- **2015-12-01 — Invoices…**: Invoices were issued between…

## 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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