# In the matter of No. Worldwide Express Pvt. Ltd.

> NCLT judgment dated 2024-02-07. Citation: TCN-2024-NCLT-02730. M/s Index Logistics Private Limited, the operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 7 Feb 2024
- **Citation:** TCN-2024-NCLT-02730
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/no-worldwide-express-pvt-ltd-a9fa84bd

## Summary

### Background

M/s Index Logistics Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against No.1 World Wide Express Pvt. Ltd., the corporate debtor, for non-payment of operational debt. The operational creditor claimed that the corporate debtor had duped them after gaining their trust and failed to pay the due amount of Rs. 2,80,74,618/-, which included principal and interest. The corporate debtor had previously issued cheques that were dishonored. An earlier company petition filed by the operational creditor was withdrawn based on a settlement agreement, but the corporate debtor failed to adhere to the terms of the settlement.

## Facts

M/s Index Logistics Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against No.1 World Wide Express Pvt. Ltd. (Corporate Debtor) for non-payment of operational debt amounting to Rs. 2,80,74,618/-. The debt comprised a principal amount of Rs. 1,76,11,143.07/- and interest of Rs. 1,04,63,475/-. The Operational Creditor alleged that the Corporate Debtor approached them for airfreight/express logistics business and subsequently defaulted on payments. The Corporate Debtor issued a balance confirmation letter on 22.04.2019 admitting a debt liability of Rs. 1,95,12,839/-. The Corporate Debtor issued cheques between 10.08.2020 and 12.10.2020, which were later dishonored. The Operational Creditor issued a

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## Issues and analysis

### Issue 1: Whether the debt arising from the failure of a settlement agreement can be considered an …

**Ratio:** The moment the parties entered into a settlement agreement, the nature of the debt being

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**Reasoning:** The Adjudicating Authority reasoned that once the parties entered into a settlement

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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 original debt was for the provision of airfreight/express

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** M/s INDEX…
- **Respondents:** NO.1 WORLD WIDE…

## Timeline

- **2016-01-01 — Insolvency and…**: The Insolvency and…
- **2020-08-05 — Statutory Dema…**: Operational Creditor issued a statutory…

## 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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