# In the matter of Geo Api Solutions Private Limited

> NCLT judgment dated 2024-02-05. Citation: TCN-2024-NCLT-02763. Marine Geology Services LLP, the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 5 Feb 2024
- **Citation:** TCN-2024-NCLT-02763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/geo-api-solutions-private-limited-7831afd9

## Summary

### Background

Marine Geology Services LLP, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against GEO API Solutions Private Limited, the Corporate Debtor. The Operational Creditor and Corporate Debtor entered into an agreement for 3D seismic data acquisition and field processing in Myanmar. The Corporate Debtor failed to make the payment as per the settlement agreement.

## Facts

Marine Geology Services LLP (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against GEO API Solutions Private Limited (Corporate Debtor). The Operational Creditor and the Corporate Debtor entered into an agreement dated 03.02.2017 for 3D seismic data acquisition and field processing in Myanmar. The project was undertaken for Bashneft International B.V. The total amount payable to the Operational Creditor was 2.5 million USD. A completion certificate was executed on 11.05.2018. Subsequently, a settlement agreement was entered into on 02.11.2018, reducing the amount to 1.25 million USD. The Corporate Debtor made a part payment of 150,000 USD on 20.09.2019

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## Issues and analysis

### Issue 1: Whether the debt of 1.10 Million USD arising under the Settlement Agreement dated 02.11.2018 is an …

**Ratio:** An 'operational debt' is defined under Section 5(21) of the Insolvency and Bankruptcy

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**Reasoning:** The NCLT observed that the initial agreement was for the provision of services, and the

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**Interpretation:** The settlement agreement is an acknowledgement of debt after negotiation which

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**Application:** The NCLT found that the debt of 1.10 Million USD arose from the provision of

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Marine Geology…
- **Respondents:** Geo Api Solutions…
- **Advocates:** Ashish…; Avni Sing…; +2 more

## Timeline

- **2017-02-03 — Agreement…**: Operational Creditor and Corporate Debtor entered into an agreement for 3D seismic data…
- **2018-05-11 — Completion Cer…**: Completion certificate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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