# In the matter of Sri Balaji Logs Products Pvt. Ltd.

> NCLT judgment dated 2024-06-05. Citation: TCN-2024-NCLT-01230. The case involves an application filed by SMRC Logistic & Warehouse Service Provider seeking…

- **Court:** NCLT
- **Order date:** 5 Jun 2024
- **Citation:** TCN-2024-NCLT-01230
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-balaji-logs-products-pvt-ltd-1e982a0c

## Summary

### Background

The case involves an application filed by SMRC Logistic & Warehouse Service Provider seeking the release of its share of rent from the Respondent, despite acknowledging the payment of rent by the Proforma Respondent. The applicant claims that the Respondent is acting illegally by misappropriating the valid share of rent to which the applicant is entitled. The applicant's claim arises from a lease agreement involving the Corporate Debtor (Sri Balaji Logistics Products Pvt. Ltd.), the applicant, and the Proforma Respondent (Qwik Supply Chain Pvt. Ltd.).

## Facts

SMRC Logistic and Warehouse Service Provider, an unregistered partnership firm, filed an application seeking its share of rent. The applicant was authorized to act on behalf of the Corporate Debtor, Sri Balaji Logistics Products Pvt. Ltd., for leasing out its warehouse. A lease agreement was executed between the applicant and the Proforma Respondent, Qwik Supply Chain Pvt. Ltd., effective from April 7, 2018. The Resolution Professional is managing the Corporate Debtor's affairs under CIRP. The applicant entered into a lease deed with the Proforma Respondent on April 3, 2018, for three years at a monthly rent of Rs. 31,73,314.00 excluding GST, which included the shares of the Corporate Debtor and the applicant. The Proforma Respondent requested a No-Objection

…

## Issues and analysis

### Issue 1: Whether the applicant, SMRC Logistic & Warehouse Service Provider, is entitled to its share of …

**Ratio:** The principle of contractual obligation dictates that parties to a valid agreement are

…

**Reasoning:** The court considered the lease agreement and the representations made by the applicant

…

**Interpretation:** The lease agreement is interpreted as a binding contract that specifies the

…

**Application:** Based on the lease agreement, the applicant is entitled to its share of rent.

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** SMRC Logistic and…
- **Respondents:** Balaji Logistics…; Anup Kumar…

## Timeline

- **2018-02-15 — Power of Attor…**: Applicant was authorized to act on behalf of the Corporate Debtor for leasing out the…
- **2018-04-03 — Lease Dee…**: Applicant entered into a lease deed with the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-balaji-logs-products-pvt-ltd-1e982a0c