# In the matter of Asmi Express Private Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02192. The case involves a petition filed by Patel Integrated Logistics Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02192
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/asmi-express-private-limited-5dee3dc1

## 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. The Operational Creditor claimed Rs. 2,63,46,928.15, including a principal amount of Rs. 1,29,41,882, for logistical services provided under an All India Cargo Agreement dated 31.12.2013. Invoices were issued between December 2015 and March 2016. The Corporate Debtor acknowledged a debt of Rs. 2,67,76,927 as of 31.03.2016. A settlement agreement was signed on 07.02.2017, with the Corporate Debtor agreeing to pay Rs. 1,68,57,954 in five monthly installments from 28.02.2017. The Corporate Debtor made a partial payment of Rs. 36,50,000, leaving Rs. 1,32,42,882 unpaid. The Operational

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## Issues and analysis

### Issue 1: Whether the claim of the petitioner in the instant matter is in respect of an 'operational debt' …

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

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**Reasoning:** The court reasoned that the default was primarily due to the non-payment of installments

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**Interpretation:** The interpretation of 'operational debt' under Section 5(21) of the IBC is

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**Application:** In this case, the Corporate Debtor's default was primarily on the settlement

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## Parties

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

## Timeline

- **2013-12-31 — Cargo Agreement…**: Cargo agreement between the…
- **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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