# In the matter of Sovika Aviation Services Private Limited

> NCLT judgment dated 2023-08-30. Citation: TCN-2023-NCLT-01856. This is an application filed by Air India Limited, the Operational Creditor/Applicant, under…

- **Court:** NCLT
- **Order date:** 30 Aug 2023
- **Citation:** TCN-2023-NCLT-01856
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sovika-aviation-services-private-limited-f663dcc9

## Summary

### Background

This is an application filed by Air India Limited, the Operational Creditor/Applicant, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Sovika Aviation Services Private Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claims a total debt of Rs. 4,43,29,384/- as of 31.12.2021, comprising a principal amount of Rs. 2,54,26,535/- and interest of Rs. 1,89,02,849/-. The dates of default are 19.10.2017 and 03.12.2019, relating to invoices for cargo handling services for Go Air and Vistara. The Corporate Debtor, the sole Cargo Agent of M/s Go Airlines (India) Ltd and Tata SIA Airlines Limited (Vistara), had an agreement with the Operational Creditor for X-Ray screening of

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## Facts

Air India Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Sovika Aviation Services Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The claim was based on unpaid invoices for X-ray screening services provided by Air India to Sovika Aviation Services at Pune Airport, under agreements dated 09.04.2015 and 16.07.2016. The total debt claimed was Rs. 4,43,29,384 as of 31.12.2021, including principal and interest. The dates of default were 19.10.2017 and 03.12.2019. Air India sent reminder emails for non-payment. Sovika Aviation Services argued that there was a pre-existing dispute, certain invoices were not received, and the claim was barred by

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the I&B Code is …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT considered the documents and pleadings submitted by both parties and found that

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The NCLT applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Air India L…
- **Respondents:** Sovika Aviation…

## Timeline

- **2015-04-09 — Agreement…**: Corporate Debtor entered into an agreement with the Operational Creditor for availing…
- **2016-07-16 — Agreement…**: Corporate Debtor entered into an agreement with the Operational Creditor for availing…

## 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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