Allowed

In the matter of Salebhai Internet Limited Cp(Ib) 61 of 2019

NCLT8 Dec 2021

Case brief

AI extract

What is this about?

The National Company Law Tribunal admitted an application for initiation of Corporate Insolvency Resolution Process against a corporate debtor for default in payment of logistics services. The Tribunal declared a moratorium and appointed an Interim Resolution Professional.

What did the court decide?

The application admitted; moratorium declared; Interim Resolution Professional appointed; advance of Rs. 25,000 directed to be paid to IRP.

In the matter of Salebhai Internet Limited Cp(Ib) 61 of… — Insolvency and Bankruptcy | NCLT (2021)

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COURT - 1

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ITEM No¹²⁷ CP(IB) 61 of²⁰¹⁹

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Orde r und^{erSection9IBG} IN THE^{MATTER OF:} BVC TradePort^PvtLtd V/s Salebhai^{lnternet Ltd}

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........ApPlicant

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..,.....ResPondent

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Orderd elive^{red on ..08/1212021}

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Coram: Madan^{B. Gosavi, Hon'bleMembe(J)} Rlri O"t Mehrotra,^{Hon'bleMembe(T)}

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PRESENT: For the^APPlicant For the IRP/RP For the^ResPondent

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ORDER

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The case^{is fixed for pronouncement of order'}

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The order^{is pronouncedin open court vide separate sheet}

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SAVI) (AJAI DAS EHROTRA ) MBER^(JUDICIAL) MEMBER^(TECHNICAL)

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Swela

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BEFORE^{THE ADWDICATINGAUTHORITY} IN THI NATIONAL^{COMPANY LAWTRIBI'NAL} AIIMEDABN)^BENCH AHMEDABAD COURT.l

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CP(IB)61 of^2o19

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[Application^{for initiation ofCorporate InsolvencyResolution} Process under^{Section 9 of the Insolvency & BalkruptcyCode'} 20161

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IN THE MATTER OF:

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BVC TradePort^{Private Limited} 1102, Solitaire^{CorPorate Park} 16, Hargovindji^Marg Chakala,^Andh.eriEast Mumbai-400093

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Versus

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Applicant

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Salebhai^{Interaet Limited} 307-A, C/O^{Safal Pegashis} Opp. Kiran^Motors, 100ft Road Oop. Rivera^Bunglows, Pianafaa^{Nagar,VejalPur} Ahmedabad-380015

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Respondent

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Order Resenred^{on: 15/ LI^lzOZl} Order Pronounced^{on: O8/12l2O2L}

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Coram: M.B. Gosavi,^{Member (J)} Ajai Das^{Mehrotra,Member(T)}

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ADDearance:

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F* th. Appltcant:^{Ld' Adv Mr'Urjit Dave} f.. ,tt"^{Rlsponaent: Ld' Adv Mr'U R Bhatt}

CP(IB) 61^{of 20 19}

ORDER

tPer Benchl

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1 This application^{has ut"[ ]ir"a by BVC Tradeport Private} Limited,^{the OperationalCreditor underSection 9 of the} Insolvency^{and BankruptcyCode'20 16 (hereinafter referred to} as IBC,^{2O16)for initiationof Corporate InsolvencyResoiution} Process^{(CIRP)againstthe Corporate Debtor viz' Salebhai} Internet^{Limited' The amount of claimed debt in default} including^{interest & Iegalcost is Rs'7'00'297/- (Rupees Seven} Lakh^{Two Hundred NinetySeven Only)'}

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The facts,^{in brief, are that the Operational Credit6r is into the} business^{of selling outsourcedlogisticservices through its} website^{gnmr,.r,annaship.com.The CorporateDebtor is an E-} commerce^{portal offering Sweets, dry fruits, paintings,} herbal Products^{and Puja items}

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handicrafts,^chocolates' across^{India' The CorPorateDebtor enteredinto servrce} agreement^{with the Operational Creditor on 31'O8'2O16' for} availing^{the logisticseryicesof the Operational Creditor'i'e' for} delivering^{the products to the customersof the Corporate} Debtor^{through the vendors of the OperationalCreditor} situated^{at different locationsin India'}

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Page^{2 of 11}

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CP(IB) 61of²⁰¹⁹

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3 It is submitted^{by the Operational Creditorthat the Corporate} Debtor has^{availed the logistic services of the Operational} Creditor,^{however, the Corporate Debtor failed to pay the} outstanding^{amount,against which the Operational Creditor} has time^{and again reminded the Corporate Debtor to clear the} outstanding^{dues. It is further submitted by the OPerational} Creditor that^{the Operational Creditor had sent a letter to the} Corporate^{Debtor on 3O' 1 l'2017 claiming Rs'6'23'134'30/- to} which the^{Corporate Debtor agreed to pay the outstanding} dues by^O6-L2.2O17 '^{However' the Corporate Debtorpaid only} Rs.2,0O,OOO/-^{out of the total outstanding amount and} therefore,^{the OperationalCreditor sent another notice dated} |5.12.2o|TtotheCorporateDebtorclaimingthebalance outstanding^{arrlountfor the invoices tillOctober' 2Ot7 of} Rs.4,22,819.80/^- '

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4 It is submitted^{bYthe OPerationalCreditor that the} Operational^{Creditorfurther' through notices and e-mails'} claimed^{the outstanding amount from the Corporate Debtor'} Thereafter,^{the CorporateDebtor through its e-mail dated} 03.01.2018,^{admittedits liability stating that the amount} payable to the Operational^{Creditor after all the deductions for}

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Page 3 of 11

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CP(IB) 61^{of 2O 19}

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lost cases,^{damagedcases' wrong deliveries and delivery} beyond^{8 daYs is Rs'2,94'208/-'}

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5 It is submitted^{by the Operational Creditor that the cumulative} amount^{outstanding ti1l 06' 12'2017 was Rs'4'22'819/-and} further^{three invoices dated ll'12'2}17' 1O'01'2018and} 12.03.2018^{were issuedto the corporate Debtor aggregating}

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to Rs.2,21,4^{L5.2Ol-'It is further submittedby the Operational} Creditor^{that the CorporateDebtoron 17.01.2018 Paid} Rs.1,OO,0O0/-^{outof the total undisputedand admitted} outstanding^{duesof Rs'2'94'208/- as admittedthroughemnil} dated^03.01.2018'

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The Operational^{Creditorfurther submitted that after sending} several^{notices and e-mailsto the Corporate Debtorclaiming} the outstanding^{amount' the OperationalCreditor sent the} Demand^{Noticeon25'O7'2018 in Form 3 und'er Section 8(1) of} theIBC,2016claimingRS.7,oO,297l-(RupeesSevenLakh Two Hundred^{Ninety Seven) which includedprincipalamount,} interestandlegalcostofRs'3'44'845/-'Rs'1'55'4531-aJld Rs.2,00,O00/-^{respectively' which was delivered atthe} registered^{address of the Corporate Debtor by Blue Dart' The} Corporate^{Debtor replied to the demandnotice'}

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CP(IB) 61^{of 20 19}

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7 It is submitted^{by the Operational Creditorthat the Corporate} Debtor in^{its replydated 21'08'2018' to the Demand Notice'} which is not^{as per Section 8(2) of the IBC' 2016' claimedfrom} the Operational^{Creditor Rs'5'00'00'OOO/-for the losses} incurred^{by the CorporateDebtor due to mis-deliveries'highly} delayed deliveries,^{return to ownersfrom whom the courier} was collected,^{etc, which is based on spurious defence as per} the averments^{of the Operatioanl Creditor'}

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8 It is submitted^{by the Corporate Debtorthat the Operational} Cred.itor^{sent anbnymous letters' mails' messages to the} various vendors^{and partiesof the CorporateDebtor claiming} that the^{Corporate Debtor has gone bankruptetc and to stop} business^{with the CorporateDebtor'It is further submitted by} the Corporate^{Debtor that the actual outstandingamount} payable to the^{Operational Creditor is Rs' 1'94'208/- and the} deduction^{and claimed amount is for the delayeddeliveries'} damage^{causedto the parcels containing food items because} of which the^{customers of the corporateDebtor rejected and} for the^{damagescaused to the CorporateDebtor due to the} unethical moves^{of the Operational Creditor'}

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Page 5 of 11

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CP(IB) 6l of 2019

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g. It is submitted by the Corporate Debtor that the Adjudicating Authority vide order^{dated 25.09.2019 adjourned the matter} totheotherdateonthegroundthatthesettlementwasgoing on between the^{Corporate Debtor and the Operational} Creditor. It is further^{submitted by the Corporate Debtor that} in order to make^{settlementthe CorporateDebtor sent an e-} mail to the^{OperationalCreditor for the pa5rment of the} outstanding^{dues of the Operational Creditor subject to the} payment of Rs. 1,35,180'^{10 by the Operational Creditor to the} Corporate Debtor^{for non-delivery,returns etc'}

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1O. It is submitted^{by the CorporateDebtor that the claimed} amount of the^{Operational Creditor is Rs'346286'49' whereas'} the amount claimed^{by the Corporate Debtor for the loss and} damages, from^{the Operational Creditor is Rs' 16'63'861/- and} therefore, net^{payable from OperationalCreditor to the} Corporate Debtor^{is Rs' 13, 17'57 4'5L I} "

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Heard^{the Learned counsel for the operational Creditor and} the Corporate^{Debtor and perused the materialon record' on} this basis^{it aPPears that:}

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A. The^{total invoice amount claimed bythe}

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Operational^{Creditor was} Rs.6,23,134.30/^-

P
,

Page 5 of 11

CP(IB) 61 of 2019

against which the Corporate Debtor paid

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Rs.2,00,000 /- and out of the balance amount of

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Rs.4,23,134 I - , the Corporate Debtor through email dated 03.01.2018 admitted to^pay Rs.2,94,208 l- after all the deductions for lost cases, damaged cases, wrong deliveries^and

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delayed delivery and further^paid Rs.1,00,000/and through email dated 17.01.20i8^assuredto pay the balance undisputed amount^of

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Rs. 1,94,208/-.

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B. The Demand Notice under^{Section 8 of the IBC,} 2016 was sent by the Operational^Creditoron 25.O7.2018 to which the^{CorporateDebtor replied} on2l .O8.2O18, which is beyond^{10 days as given} under Section 8 of the IBC, 2016.^{The Corporate} Debtor tllrough email dated 03.01.2018^admitted the claim of Rs.2,94,2O8 l- stating that^the balance outstanding amount is the deduction for the loss and damage caused to the Corporate Debtor. However, the Corporate Debtor raised

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dispute when the Demand Notice was sent by the

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Page 7 of 11

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CP(IB) 61 of²⁰¹⁹

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Operational^Creditor'

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C. The Corporate^{Debtor acceptedand admitted the} dues for an^{arnount of Rs' 1,94,208/- (Rupees one} lakh ninety^{four thousandtwo hundredand} eight). Hence,^{the claim of the Operational} Creditor^{is accepted& admitted by the Corporate} Debtor.^{The default amountmeets the threshold} limit as^{per Section4 of the IB Code' 2016 and is} well within^{the limitation for frling the present} application.

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D. In the^{view of facts, it is clear that Corporate} Debtor has^{defaultedin the paymentof its debts'} On the^{basis of the facts the applicationis} otherwise^{defect free & on record' Accordingly'we}

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admit this^{applicationand order as under:}

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ORI'ER

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I The application^{is admittedand the moratoriumis} declared^{for prohibitingall of the following in terms of} Section^{14(1) of the Code'}

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ntinuation^of Pending

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a. the institution^{of suits or.co} t the^{corPoratedebtor} suits^or Proceedings^agalns iudqment,^decreeor

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iictuai"g^{executionof ang} "oiai, ii ang court of lattt,"^{ti6unal, arbitration} panel or^{other authontA;}

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Page^{8of 11}

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CP(IB) 6I of^{20 19}

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b. transferring,^{enanmbering, alienatingor disposing} ofbg the corporate^{debtor ang ofits assets or ang} igat agnt or^{benefictal interest therein;}

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c. anA action^to foreclose,^{recouer or enforceang} interesit created^{by tle corporate.debtor in}

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""Zuritg ,""p""1. of^{its propertg including ang actionunder} thi Secuitisitioi^{ana Reconstructionof Financial}

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Assets and^{Enforcementof Secuitg InterestAct'} 2002;

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d. the recouery^{of ang property by an ou)ner or lessor} uhere suih^{propertyis occupied by or in the} possession of the^{corporatedebtor'}

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u The order of^{moratorium shall have effect from the date} of this order till^{the completion of the Corporate} Insolvency^{ReSolutionProcessor until this Adjudicating} Authority approves^{the ResolutionPlan under sub-} section^{(1) of the Section 31 or passes an order for} liquidation^{of Corporate DebtorCompanyunder Section} 33 of the lBC,^{2016,as the case maY be'}

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III The Operational^{Creditor has not proposedthe name of} the Interim Resolution^{Professional(IRP), which is not} mandatory under^{Section9 of the IBC, 2016' Therefore'} this Adjudicating^{Authorityherebyappoints Mr'Krunal} Ramanbhai^{Tanna havlng registration No' IBBI/IPA-} O01/IP-PO1g4gl2D2}-202tlt3O64.^e-mail [email protected]^{to act as an IRP under} Section 13(1)^{(c) of the IBC, 2016'}

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IV The IRP shall^{performall his functionsas contemplated,} inter-alia, by Sections^{!7, 18,20 &,21 of the Code. It is} further made clear^{that all} Personnel connected with

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CP(IB) 61 of 20 19

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Corporate Debtor, its^{Promoter or any other person} associated with^{managementof the CorporateDebtor are} under legal obligation^{under Section19 of the Code} extend every assistance^{and co-operationto the Interim} Resolution Professional.^{Where any personnel of the} Corporate Debtor, its^{Promoter or any other person} required to assist or^{co-operate with IRP, do not assist or} Co-operate. IRP is at^{liberty to make appropriate} application to this^{AdjudicatingAuthority with a prayer} for passing an aPProPriate^order.

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v This Adjudicating^{Authority directs the IRP to make} public announcement of^{initiation ofCorporate} Insolverrcy Resolution^{Process (CIRP) and 'call for} submission of claims^{under Section 15 as requiredby} Section 13(1)^{(b) of the CODE.}

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\II It is further directed^{that the supply of goods/service to} the Corporate Debtor^{Company, if continuing, shall not} be terminated or suspended^{or interruptedduring} moratorium^period.

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\rII. The IRP shall be under^{duty to protect and preserve the} value of the property^of the 'Corporate^{DebtorCompany'} and manage the operations^{of the CorporateDebtor} Company as a^{going concern as a part of obligation} imposed by Section 20^{of the Insolvency& Bankruptcy} Cod,e, 2016. The Operational^{Creditor is directed to pay} an advance of Rs.^{2I5OOOI- (Rupees I\renty Five} Thousand Only) to the^{IRP within two weeks from the} date of receipt of^{this order for the purpose of smooth}

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+L-

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CP(IB) 6 I of 20 19

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conduct of Corporate Insolvency Resolution Process (CIRP) and IRP to file proof of receipt of such arnount to this Adjudicating Authority along with First Progress Report within 30 days,

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VIII. The Registry is directed to communicate a copy of this order to the Operational Creditor, Corporate Debtor and to the Interim Resolution Professional and the^concerned Registrer of Companies, after completion of necossary formalities, within seven working days and upload the sarne on website immediately after pronouncement^of the order.

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Accordingly, CP(IB) 61 of 2019 is allowed.

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AJAI DAS EHROTRA MEMBER (TECHNICAL)

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,P I GO M cIAL)

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Swa(i

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Certified to,be True Copy of the Odginal Joint Registrar NCLT, Ahmedabad Bench Ahmedabad

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Page 11 of 11

In the matter of Salebhai Internet Limited Cp(Ib) 61 of 2019

Case brief

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In the matter of Salebhai Internet Limited Cp(Ib) 61 of 2019

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