# In the matter of Lumiford Private Limited

> NCLT judgment dated 2024-06-10. Citation: TCN-2024-NCLT-01197. The case involves an application filed by M/s. COSR Ventures, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 10 Jun 2024
- **Citation:** TCN-2024-NCLT-01197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lumiford-private-limited-be700b0c

## Summary

### Background

The case involves an application filed by M/s. COSR Ventures, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Lumiford Private Limited, the corporate debtor, alleging default in payment of an operational debt. The operational creditor claimed a total outstanding amount of Rs. 2,66,87,698/-, comprising a principal amount of Rs. 2,11,57,192/- and interest of Rs. 55,30,506/-, with the date of default being 06.05.2022. The operational creditor was appointed as a 'Carrying and Forwarding Agent' (C&F Agent) for the sale of the corporate debtor's products, and later as the Exclusive Online Distributor. Several agreements and a Memorandum of Understanding (MOU) were entered into between the parties, including a

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## Facts

M/s. COSR Ventures (Operational Creditor) filed a petition under Section 9 of the IBC against M/s. Lumiford Private Limited (Corporate Debtor) for defaulting on an operational debt of Rs. 2,66,87,698/-. The debt comprised a principal amount of Rs. 2,11,57,192/- and interest of Rs. 55,30,506/-, with the default date being 06.05.2022. The Operational Creditor was initially appointed as a 'Carrying and Forwarding Agent' (C&F Agent) on 10.01.2020, and later as the Exclusive Online Distributor via a Memorandum of Understanding (MOU) dated 21.05.2021. The Operational Creditor deposited Rs. 1 crore as a security deposit under the C&F Agreement. A Termination Agreement was executed on 15.03.2022. The Corporate Debtor was to pay Rs. 2,11,57,192/- to the Operational

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## Issues and analysis

### Issue 1: Whether an 'Operational Debt' of a sum exceeding rupees one crore, due and payable by the Corporate …

**Ratio:** Financial creditors lend finance on a term loan or for working capital, while operational

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**Reasoning:** The NCLT found that the transactions between the Operational Creditor and the Corporate

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**Interpretation:** The term 'Operational Debt' is interpreted to include debts arising from the

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**Application:** The NCLT applied the principle that the debt arising from the supply of goods

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s. COSR V…
- **Respondents:** Lumiford Private…; M/s. Lumiford…

## Timeline

- **2020-01-10 — C&F Agent Ag…**: Operational Creditor appointed as 'Carrying and Forwarding Agent' for the sale of…
- **2021-05-21 — Memorandum of…**: Operational Creditor appointed as…

## 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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