# In the matter of Leo Creations Pvt. Ltd.

> NCLT judgment dated 2024-03-08. Citation: TCN-2024-NCLT-02134. The case involves an application filed by ASR Logistics India Pvt. Ltd., the Operational…

- **Court:** NCLT
- **Order date:** 8 Mar 2024
- **Citation:** TCN-2024-NCLT-02134
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/leo-creations-pvt-ltd-e3f30397

## Summary

### Background

The case involves an application filed by ASR Logistics India Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Leo Creations Pvt. Ltd., the Corporate Debtor, for defaulting on a payment of Rs. 6,47,780/- along with interest. The Operational Creditor claimed that the Corporate Debtor failed to make payments for services rendered, specifically customs clearing and freight forwarding. The Corporate Debtor disputed the claim, alleging that there was no written contract and that all payments had been made. The application was filed on 30.10.2019.

## Facts

ASR Logistics India Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Leo Creations Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 6,47,780/- along with interest, for services related to customs clearing and freight forwarding. The Operational Creditor had raised 10 invoices between 13.07.2016 and 31.10.2018 for an aggregate amount of Rs. 13,97,780/-. The Corporate Debtor made part payments of Rs. 7,50,000/-. The date of default was 07.11.2016. The Corporate Debtor argued that there was no written contract and that all payments had been made. The application was filed

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## Issues and analysis

### Issue 1: Whether there is an ‘Operational Debt' exceeding Rs. …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code, 2016, defines 'Operational Debt' as

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**Reasoning:** The Adjudicating Authority analyzed the facts and found that the Operational Creditor

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**Interpretation:** The definition of 'Operational Debt' is interpreted broadly to include debts

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**Application:** In this case, the debt arose from the provision of services by the Operational

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** ASR Logistics…
- **Respondents:** Leo Creations…; M/s Leo Creations…

## Timeline

- **2016-07-13 — Invoice Perio…**: Start date of the period for which invoices…
- **2018-10-31 — Invoice Per…**: End date of the period for which invoices…

## 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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